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1、Section 3 Strategic Planning ProcessCONFIDENTIALPlanning chart for strategy formulationMay be given to management to assist them to prepare their strategy.TimingPossible strategiesConstraintsStrategic planPhase I Phase II Phase IIIChange top managementChange other managementImproved financial contro
2、ls: Operating budgets Capital budgets Cash flow forecasts Central cash controlsOrganisational change: Decentralisation Divisionalisation revised control spans revised reporting lines move towards participative style of management revised pay/benefits systemProduct market reorientation: add/delete pr
3、oducts add/delete customers change product mix change customer mix withdraw from some markets enter new markets price changes discount changesImproved marketing: better management target sales effort motivate sales force enhanced sales reports refocused advertising and promotion improved distributio
4、nTimingPossible strategiesConstraintsStrategic planPhase I Phase II Phase IIIAsset reduction: reduce stocks reduce debtors reduce work in progress sell surplus property sell surplus plant sell surplus vehicles sell operating subsidiariesCost reduction: material costs labour costs overhead costsInvestment: plant & equipment vehicles premises employees training R&D Acquisitions Enterprise Restructuring and Development Methodology Manual - 2 -8ba0c60bc51e6848dd7e024842f9f7f8.pdf, June 2002