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Copy of strategic planning

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Shugato Banerjee

on 26 February 2013

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Transcript of Copy of strategic planning

scenario planning Mission Time schedule De-wit & Meyer United Parcel Service Founded by Jim Casey in 1907, borrowed 100 $ from friends to start the small company.
Started its service by delivering messages in Seattle, Washington.
After several transformations grown in to a 37 billion organization.
From messages to package delivery to international transportation company
1990’s as a logistic company and in 1992 UPS went public. UPS History UPS delivers more than 15 thousand packages a day to about 6.1 Million customers in 200 countries around the world.
Headquartered in Atlanta, Georgia and operates primarily in the United States, with about 428,000 employees.
In 2005 UPS Airlines was one of the largest airline in United States.
What can Brown do for U? UPS facts and figures 1997 Scenario characteristics Axes of uncertainty Interview sample questions Horizon 2017 Implications and Strategies Horizon 2017- Early Warning Signals Strategic Planning at United Parcel Service(UPS) Internal vs. external roles Line vs. staff roles Top vs. middle vs. bottom roles The issue of realized strategy
How can a successful course of action be realized in practice? Strategy formation roles
How will the strategy formation activities be carried out? Strategy formation activities
What are the elements of the strategic reasoning process? Realized Strategy
Strategy Formation Activities and Roles Realized Strategy
Strategy Formation Activities Serve distribution, logistics and commerce, to meet the needs of the customers worldwide, offering excellence and value

Financially strong company, with broad employee ownership, long term competitive return to share owners

Responsible and well regarded employer; providing employees with an impartial, rewarding, cooperative environment, provide advancement opportunities Similar in process and format to the session in 1997
Three important variations:
Deeper regional levels
More extensive preparatory interviews
Involving participants Horizon 2017
Second scenarios Company City
Bordered Disorder
Connected Chaos
Networks without Borders Four Scenarios 1997; 1st scenario-planning session
1999; UPS Charter drafting
2002; Centennial Plan— UPS future scenario, also called five year strategic plan
Shortly after; Strategy Road Map— to take the centennial plan to an executable level of detail An annual plan be separated out and translated into regional business plans, handed down to the regions to execute
From 1999 to 2002; change company`s purpose from serving the package-delivery needs of the customers to enabling global commerce, a move which reflects the more global nature of the business, with focus on end-to-end supply-chain solutions.
In 2002; planning start to position the company up to the next 5 years in 2007
Realized the Importance of establishing a retail presence to serve more proactive consumers. Conceiving
-option generation Plan a qualitative set of goals and characteristics for the year 2007
The group development and overarching sense of corporate direction with one vision and one brand
Four imperatives—winning team, value-added solutions, customer focus ,enterprise excellence Conceiving
--Option selection 1997 Scenario: Implications and Strategies The management committee established a process to oversee and manage the strategy road map and implement the centennial plan
MC Dewitt oversee the efforts and put in the discipline needed to accomplish the 2007 plan Realizing
—performance control
2001; decides to acquire Mail Boxes Etc., a franchised network of retail stores providing shipping and business services.
Initiate trade direct project.under the value-added solutions imperative. Realizing
—action taking Centralized, hierarchical with traditional structure at the top
Senior management and staff set direction, priorities, budgets and initiatives
Tactical at the regional level, strategic at the corporate level
Low levels of autonomy at the regional level
This was 2002, when mike Eskew become CEO. Organization- Structure Business strategy Deliberate Strategizing
A plan is a means towards an end.
Most firms have some degree of production planning, resourcing planning, manpower planning, and financial planning to name a few.
Direction: Plans give a sense of direction.
Without direction, organizations would not know what they were working towards.
Commitment: Plans enable early commitment.
By having objectives, firms can invest resources, train people, build up production capacity and take a clear position.
Coordination: Plans allow for one consistent course of action to be followed throughout the entire organization, avoiding overlapping, conflict ion and contradictory behavior.
Optimization: Plans facilitate optimal resource allocation.
Managers consider all available information and evaluate all available options.
Programming: Plans are a means for programming all organizational activities in advance.
Having detailed plans allows organizations to run with precision. 2004; Second scenario-planning session— „Horizon 2017“ 2005; review and update Strategy Road Map THANK YOU Evolution of strategies Until early 1990 there was no formal strategic planning process
Company's execution mentality was hindering management's ability to see significant changes in the environment
In 1996 strategy advisory group and corporate strategy group was formed.
Implementation of new strategies process led to redefining of UPS,s mission and purpose.
"Enabler of global commerce''. Out come Identification of key themes and insight , the creation of a platform for management discussion, and a mind-set shift for some manages.
Eventual definition of the corporate charter and change in company's mission statement.
Helped to create several themes for future. Axes of uncertainty
Horizon 2017 scenario characteristics
Full transcript