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        3.3 The strategic planning process
　　The rational approach to strategic planning breaks down the process into three distinct steps.
　　1 Strategic analysis – three key areas
　　• External analysis of markets, competitors, the business environment, etc. to identify opportunities and threats.
　　• Internal analysis of the firm’s resources, competences, etc. to identify strengths and weaknesses.
　　• Stakeholder analysis – to understand stakeholder expectations/influence in order to clarify objectives.
　　2 Strategic choice – again three key angles to consider
　　• What is the basis of our strategy? In particular how are we going to compete – high quality, low costs?
　　• Where do we want to compete? Which markets, countries, products?
　　• How do we want to get there? Organic growth, acquisition or some joint arrangement such as franchising?
　　3 Strategic implementation
　　• Once determined, the long-term strategy needs to be translated into plans for marketing, human resources management, IT, production, organizational structure, etc.
　　• The strategy may involve major changes so these will also have to be managed.
　　Test your understanding 10
　　Give three strategic issues that should be considered by the headmaster of a school as part of strategic analysis.