planning and strategic management. planning - all planning occurs within an environmental context...
TRANSCRIPT
- All planning occurs within an environmental context
-If managers do not understand this context , they are unable to develop effective plans
-Basing on understanding this context , manager establish organization’s mission
-The mission outlines the organization’s purposes , premises, values and directions
-The mission helps determines Strategic goals and plans
-Strategic goals and plans let developing tactical goals and plans
-Tactical goals and plans determine operational plans
I/ Organizational Goals:
- Provide guidance and a unified direction for people in the organization: everyone can know to where the organization is going .
- Goal-setting promotes good planning which facilitates future goal setting
- Serve as a source of motivation for employees of the organization
- Provide an effective mechanism for evaluation and control
* Kinds of Goals
There is four basic level of goals :
- 1- Mission
- 2- Strategic goal
- 3- Tactical goal
- 4- Operational goal
1- Mission:
Is a statement of its fundamental , unique purpose that differentiate it from other firms and identifies the scope of the business’s operations in product and market terms(E.g: being the first purveyor of an enzyme in the world) 2- Strategic goals:
- Are set by and for top management of organization.
-Focused on broad and general issues
( E.g: opening 1000 Laboratories in the world)
3- Tactical goals:
- Are set by and for middle managers.
-Focused on how to operationalize actions necessary to achieve the strategic goals
-(E.g: working on the distribution of homologues laboratory in different country and possibilities of cooperation)
4- Operational goals ( or objectives)
- Are set by and for low-level managers
- To Precise short-term objectives associated with the tactical goals.
-(E.g: To precise the number of laboratory to be opened by year )
II/ Organizational Plans:
Organizations establish many different kinds of plans:
-Strategic plans
-Tactical plans
- Operational plans
1- Strategic Plans:
-Set by the Board of directors and top management
- Outline :- Decisions of resources allocations -Priorities-Action steps necessary to reach strategic goals
-Have extended time horizon- Adress questions of-Scope-Resource deployment-Competitive advantage
2- Tactical Plans
-Set for middle management
-Are developed to achieve tactical goals
- Have short –time horizon
- Have specific and concrete focus
-Are concerned more with actually getting things done than with deciding what to do
3- Operational Plan
-Set by middle and lower –level managers
-They carry out tactical plans to achieve operational goals
-Have short-term focus
-Are narrow in scope : concern small activities
STRATEGY :
-Is a comprehensive plan for accomplishing an organization’s goals
-Strategic managements: a comprehensive and ongoing management process aimed at formulating and implementing effective strategies
-Effective strategies: That promote a superior alignment between the organization and its environment
The components of strategy:
-A well conceived strategy address three areas:
- 1- Distinctive competence - 2- Scope- 3- Resource deployment
-1- Distinctive Competence :
Something that the organization does exceptionally well
-E.g: -Speed in moving inventory -Electronically transmits orders to supplies in other countries
-2- The Scope: The scope of a strategy specifies the areas of competitions
- E.g:
-With which laboratory we can compete
- In which country we can compete
- Resource deployment : Concern how to distribute its resources across the areas in which it competes
E.g:
- How many Laboratories by Country -Area or regions of installing laboratories
Types of strategic Alternatives :
Most business today develop strategies at two distinct levels:
-1. Business level strategy: A strategic alternatives to conduct business in a particular operation ( industry , market)
- 2. Corporate-level-strategy: a strategic alternatives to manage many operations simultaneously .