Watch this with a 10-15 minute audiotrack at http://vimeo.com/novusprogram/lesson15 The goal of this lesson is do explain the purpose of having a strategy and developing a strategic plan. The lesson provides an overview of the prerequisites of having a strategic plan, then provides an explanation of each of the four phases of the strategic planning process: Situational Analysis, Setting Goals, Creating a Path Forward, and Using the Strategic Plan. The Novus project is a combination of video tutorials designed to be used in conjunction with a free business simulation software program. The Novus Business and IT Program contains 36 business and IT training videos, covering basic finance, accounting, marketing, economics, business strategy, Word, Excel, and PowerPoint. Users will have an opportunity to apply the lessons in the Novus Business Simulator. Over six rounds, the user or teams will have to make decisions on capital purchases, financing, production, financing, and human resources for a microbrewery. This channel has arranged the 36 video lessons into the order in which they are meant to be used with the simulator. To watch this slideshow as a video, please go to our Vimeo page at: https://vimeo.com/novusprogram. To download our free business simulation software, please go to our SourceForge page at: http://sourceforge.net/projects/novus/.

1. Strategic Planning
Objective: To understand strategic planning and how to create a strategic
plan.
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2. Introduction
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3. Definition
• A strategy is a method for reaching a goal
• Strategic planning (SP) = creating strategies
• SP answers questions about the future of a
business.
• SP gives a business focus
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4. Prerequisites of Strategic Planning
Before doing SP, understand these things about
the business:
1. Vision Statement
2. Mission Statement
3. Values
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5. Strategic Planning Process
1. Situational
Analysis
4. Use the 2. Goal
Plan Setting
3. Creating a
Path
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6. Step 1: Situational Analysis
Tools for understanding the current situation:
• SWOT
• Review an old strategic plan
• Observation
• Mission and vision statements
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7. Step 2: Setting Goals
Goals should:
• Reflect the SP’s time horizon
• Reflect the mission and vision statements
• Be:
– Specific
– Measurable
– Attainable
– Relevant
– Time-bound
• Focus on what, not how
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8. Using SWOT to Create Goals
• Short-term = Strength + Opportunity
• Mid-term = Strength + Threat
Weakness + Opportunity
• Long-term = Weakness + Threat
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9. Step 3: Creating a Path
An action plan is needed to reach the goals
Think about:
• Desired results
• Potential obstacles
• Support you need
Write down who, what, and when for each action
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10. Step 4: Use the Plan
• Review the plan from time to time
• Annually measure your progress on the goals
• Do a final review after the time horizon has
passed
– Did you meet the goals?
– Why or why not?
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11. Summary
Creating a strategic
plan is hard work,
but worthwhile
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