URBS 4/511 Urban
Policy & Strategic Analysis
Building
the Plan
Strategic Thinking
- The Concept: "How
shall we define success? What will it take to achieve it?"
- focus on integration
& coordination
- not comprehensive
(hence, "strategic")
- no one best solution
("satisfice")
- way of thinking (not
a cookbook)
- The model
- Mission
- Strategic Objectives
- Resource Allocation
- Implementation/Evaluation
- Mission (SWOT Analysis)
- Internal audit
(Strengths & Weaknesses)
- External audit
(Opportunities & Threats)
- Strategic Objectives
(Emphasize distinctive competencies)
|
Declining or Steady Market Share
|
Growing Market Share
|
Increasing Growth Rate
|
Cash Cows
|
Stars
|
Declining or Steady Growth Rate
|
Dogs
|
Question Marks
|
o
Organizational Analysis (7 Ss)
o
Shared values, Style
o
Staff, Systems, & Structure
o
Strategy, Skills
o
Industry Analysis
o
Buyers, suppliers, competitors
o
New entrants, substitutes
o
How will competition respond?
o
Stakeholder Analysis
o
Suppliers
o
Labor, management, stockholders
o
Competitors
o
Customers, community
5. Resource Allocation (Do what it
takes)
- Allocate
new programs between established and new business
- Protect the position
(4 Ps)
- Product
- Promotion
- Price
- Place (distribution)
6. Implementation/Evaluation
- Credible
plan
- Supportive action
plans
- Realistic resource
allocation
- Culturally compatible
strategies
- Good strategy
monitoring system
Principles of Business Strategy
- Strategy should identify
- Consumer (sales,
receivables, inventories, fixed assets)--market segment & channels to
market. But in public sector, must distinguish between
"customer" (focused on satisfaction of own desire) and
"citizen" (focused on common good and long-term consequences to
community)--Robert Denhardt, PA Times,
2/97.
- Production process (fixed assets, inventories,
payables)--capacity needed
- Financial structure (ROE= margin X turnover X
leverage)--forecasts & capital attraction
- Performance measures (final market & capital
market)--outcome assessment, indicators of achievement
- Fiscal Control Issues
- Allocate resources
- capital budget, capital improvement plan
- risk vs. return
(cost of risk?)
- Source of money
- debt vs. Equity
- cost of
capital (how high is hurdle rate? single or multiple hurdles?)
- Measure and control
progress
- forecast the future
- evaluate the past
- Rate of return
- ROE (Return on
equity) = Net income/ equity
- ROE = Margin X
Turnover X Leverage
- Margin = Net income/
Sales
- Turnover = Sales /
Total assets
- Leverage = Total
assets / Equity
- Types of Budgets
- Line-item
(Personnel, Salary Overhead, Materials, Supplies, Equipment rental,
General & Administrative, Profit)
- Program Budget
- PPBS
- Performance Budget
- ZBB
- Other Fiscal Tools
- CIP
- Fiscal Impact
Assessment
- Tax-increment
Financing
© 2009 A.J.Filipovitch
Revised 20 May 2009