planning concept

8/10/2019 planning concept

1/15

51Copyright 2006 Thomson Business and Economics. All rights reserved.

Planning Dimensions

Planning Determining what you want to accomplish and

developing approaches to achieving your

objectives.

Planning Dimensions:

Exhibit 51


2/15


Strategic and Operational Planning

Strategic Planning The process of developing a mission and long-

range objectives and determining in advance

how they will be accomplished.

Operational Planning

The process of setting short-range objectives

and determining in advance how they will be

accomplished.

Strategy

A plan for pursuing the mission and achieving

objectives.


3/15


The Strategic Planning Process

Exhibit 52


4/15


Strategic and Operational Levels

Exhibit 53


5/15


Industry and Competitive Situation Analysis

Situation Analysis Focuses on those features in a companys

environment that most directly affect its optionsand opportunities.

Five Competitive Forces (Porter) Rivalry among competing sellers in the industry

Threat of substitute products and services

Potential new entrants

Power of suppliers

Power of buyers


6/15


Porters 5 Forces Model

Starbuckss Example

Exhibit 54


7/1557Copyright 2006 Thomson Business and Economics. All rights reserved.

Parts of a Company Situation Analysis

Exhibit 55

1. Assessment of the present strategy basedon performance.

2. Strengths, Weaknesses, Opportunities,

and Threats (SWOT) analysis.

3. Assessment of competitive strength and

identification of competitive advantage.

4. Conclusions concerning competitive

position.

5. Determination of the strategic issues and

problems that need to be addressed

through the strategic planning process.



SWOT Analysis for

Starbucks Coffee

Exhibit 56



Competitive Advantage

Core Competency A functional capability (strength) that the firm

does well and one that creates a competitive

advantage for the firm.

Benchmarking The process of comparing an organizations

products or services and processes with those

of other companies.

Scanning the Environment

Searching the external environment for

opportunities and threats.



Writing Effective Objectives

Max E. Douglass model for writing effective

objectives: (1) the word to, followed by (2) an action verb, (3) a statement of the single, specific, and

measurable result to be achieved, and (4) a target date.

To achieve a 6% overall return on fourth quartersales.

SMART Objectives

Specific Measurable Achievable Realistic Time



Management by Objectives (MBO)

Management by ObjectivesStep 1. Set individual objectives and plans.

Step 2. Give feedback and evaluate performance.

Step 3. Reward according to performance.

Sources of MBO Failures

Lack of top management commitment and

follow-through on MBO.

Employees negative beliefs aboutmanagements sincerity in its efforts to include

them in the decision-making process.



Corporate Grand and Growth Strategies

Exhibit 59



Portfolio Analysis: BCG Matrix

Exhibit 510



Competitive Strategies

Differentiation Competing on the basis of features that

distinguish one firms products or services fromthose of another.

Cost Leadership The firm with the lowest total overall costs has a

competitive advantage in price-sensitivemarkets.

Focus Concentrating competitive efforts on aparticular market segment, product line, orbuyer group.


15/15


Strategies for Starbucks over the Product Life Cycle

Exhibit 513

planning concept

Documents