Week 3 - Strategic Planning
Hax & Majluf:
Author Hax & Majluf (1991)
Title A formal Strategic planning process
Disciplined and formal approach to strategic planning
Formal strategic planning process: a disciplined and well-defined
organisational effort aimed at the complete specification of a firm’s
Main concept
strategy and the assignment of responsibilities for its execution.
The most Important part of the process is the process itself as it
integrates and involves all levels.
Strategies happens on 3 levels:
- Corporate level: decisions that need to be taken with full corporate
scope. Not only CEO, top management team could also decide.
- Business level: decisions to secure long term competitive advantage.
Business managers formulate and implement strategies in line with
corporate directions.
- Functional level: consolidate strategies from the top and and
Important consolidates functional requirements demanded by the composite of
constructs businesses.
Pros of strategic planning:
1. Planning process helps unify corporate directions, same objectives
2. The segmentation of the firm is greatly improved
3. The planning process introduces a discipline for long-term thinking
in the firm
4. The planning process is an educational device and an opportunity
for multiple personal interactions and negotiations at all levels
Planning school. Strategy is a step by step process where all levels of
Approach to the firm plan what to do. Neither top down or bottom up-
strategy communication between levels.
Hax & Majluf:
Author Hax & Majluf (1991)
Title A formal Strategic planning process
Disciplined and formal approach to strategic planning
Formal strategic planning process: a disciplined and well-defined
organisational effort aimed at the complete specification of a firm’s
Main concept
strategy and the assignment of responsibilities for its execution.
The most Important part of the process is the process itself as it
integrates and involves all levels.
Strategies happens on 3 levels:
- Corporate level: decisions that need to be taken with full corporate
scope. Not only CEO, top management team could also decide.
- Business level: decisions to secure long term competitive advantage.
Business managers formulate and implement strategies in line with
corporate directions.
- Functional level: consolidate strategies from the top and and
Important consolidates functional requirements demanded by the composite of
constructs businesses.
Pros of strategic planning:
1. Planning process helps unify corporate directions, same objectives
2. The segmentation of the firm is greatly improved
3. The planning process introduces a discipline for long-term thinking
in the firm
4. The planning process is an educational device and an opportunity
for multiple personal interactions and negotiations at all levels
Planning school. Strategy is a step by step process where all levels of
Approach to the firm plan what to do. Neither top down or bottom up-
strategy communication between levels.
