this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition dot-com when I come to part of the syllabus which deals with strategic planning strategic planning means long term planning you're looking for something like five or ten years it's not next year's budget before we get into the theory it's worthwhile just looking at some generally well-known companies who may have had the planning problems in the past and also to think well maybe worded they go wrong one sort of variety of errors perhaps could air made and the first one is IBM and then the really the 1980s IBM was one of the largest companies in the world it was second only to the large oil companies it was the apple of its day but within about five years from a run 1982 around 1985-86 something of that sort it went from a predominantly successful position to a situation were people at one time thought it might seriously have to come into liquidation now what did such a a powerful almost almost monopolistic company order to do wrong and to some extent was a victim of technology even though was a technology company that around 1980 81 82 personal personal computers became widely available it was around then that the first Apple machines became available and IBM was a company which specialized in very large commercial computers here filling entire rooms and floors of buildings and and really they couldn't understand why people would be happy with a suppor desktop computer or did why they would want them at home and then shortly after that networks were available and people could share work share information and so on and IBM simply didn't quickly enough to adjust the way in which was manufacturing very large machines and seeing how the technological innovations that really turned the the way people want to do to buy machinery they've got a very long story short IBM doesn't make personal computers anymore ain't it tried to do it that it was rather over costed and and not the best specifications and it did for a while but about ten years ago it sold its personal computer business to Lenovo who were able to make personal computers sufficiently cheaply to make a profit on them IBM changed its strategy and now is effectively in the business of supplying services computing services and whereas a laptop and desktop computers have become commodities and have really beaten down on very price very sensitive very very stiff price competition services you can still say to people look here's my reputation rely on me I'm going to give you unique service and it's safe to go with me and you instigate a larger markup you probably also remember Nokia and about ten years ago Nokia phones were really about the most popular in the world and then within about two years more or less see the brand Nokia disappeared there the reason was again a technology and that they were wedded to a particular operating system smartphones came along particularly iPhones how more people saw they could easily text or access the internet and listen music and so on on their phone Nokia had been left behind at blackberry perhaps is facing a similar kind of dilemma it has a little bit of a niche in the business market but whether or not will actually survive in the face increasingly competitive mobile phones and indeed secure mobile connections is still open to question Kodak you may remember Kodak it had been a very famous again almost a monopolistic company those Kodak and food Fuji chrome which made what I called old fashioned 35 millimeter films films that you put in a 35-millimeter camera rolls of celluloid with kind of light-sensitive dye on it and you can reduce negatives prints lights and so on no prizes for guessing what their problem was again it was an advanced technology and the digital cameras Kodak saw that digital cameras were going to eat into the market they predicted a fall in their market of about 10% per annum but it was actually about 30% per annum they tried to get into producing digital cameras themselves but the problem of Kodak had was that Lowe had made very good films it made some cameras which were really very much down at the bottom of the market it was almost by my film and will give you a very basic camera to run the film through and to take photographs and when they tried it to make up market cameras and a she made very good cameras people would say why would I spend you know $400 $500 $600 buying a Kodak digital camera when I could buy a a Canon or Nikon or olympus digital camera something which had a rail for our name and reputation in that sort of market Kodak still kind of stumbling about a little bit it's not really in the film market a camera market anymore the last I heard it was inventing some sort of cryptocurrency to try to rival Bitcoin uber you will know about Hoover was a company which had meteoric rise along with Cummings like air B&B an uber of course allowed people to hail taxis and for taxis to be hired much more cheaply and you could follow around on your mobile phone to see whether the tactic was how close it was to you and so on so that was an opportunity coming through at technology unfortunately there seem to be certain cultural problems within the company particularly with the the founder and the previous chief executive officer and there were incidents of a lot of treating fair drivers fairly there there were some doubts about how well drivers had been vetted to be safe with members of the public and also it has to be said that there were many conventional taxi businesses who lobbied governments and so on to keep these upstarts out even though the upstarts had it possibly been properly managed would have given a perfectly good and adequate unsafe taxi service so most of these have suffered or been caused through changes in technology but it isn't always that it can be changes in taste it can be changes in perhaps the reputation of a company which is that there it can be had changes in the economy in which the company is trading so that it's upmarket luxury goods are simply not affordable anymore but what it shows is even the best regulated companies can go astray strategic planning is certainly no guarantee that you're going to be around in the future but we'll argue strongly the 2tg planning gives you the best chance of being around in the future