the manager as a planner and strategist chapter eight mcgraw-hill/irwin copyright © 2011 by the...
TRANSCRIPT
The Manager as a Planner
and Strategist
chapter eight
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1. Identify the three main steps of the planning process and the relationship between planning and strategy.
2. Describe some techniques managers can use to improve the planning process so they can better predict the future and mobilize organizational resources to meet future contingencies.
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Learning Objectives (cont.)3. Differentiate between the main types of business-
level strategy and explain how they give an organization a competitive advantage lead to superior performance.
4. Differentiate between the main types of corporate-level strategies and explain how they are used to strengthen a company’s business-level strategy and competitive advantage
5. Describe the vital role managers play in implementing strategies to achieve an organization’s mission and goals
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Planning and Strategy
• Planning– Identifying and selecting appropriate goals and
courses of action for an organization.• The organizational plan that results from the planning
process details the goals and specifies how managers will attain those goals.
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Planning and Strategy
• Strategy– A cluster of decisions
about what goals to pursue, what actions to take, and how to use resources to achieve goals.
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Planning and Strategy
• Mission Statement– A broad declaration of an organization’s purpose
that identifies the organization’s products and customers and distinguishes the organization from its competitors.
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Example – Facebook Mission Statement
Facebook's mission is to give people the power to share and make the world
more open and connected.
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Three Steps in Planning
8-8Figure 8.1 page 297
The Nature of the Planning Process
To perform the planning task, managers:1. Establish where an organization is at the
present time2. Determine its desired future state3. Decide how to move it forward to reach that
future state
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Why Planning is Important
1. Necessary to give the organization a sense of direction and purpose
2. Useful way of getting managers to participate in decision making about the appropriate goals and strategies for an organization
3. Helps coordinate managers of the different functions and divisions of an organization
4. Can be used as a device for controlling managers
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Why Planning is Important
• Unity – at any one time only one
central, guiding plan is put into operation
• Continuity – planning is an ongoing
process in which managers build and refine previous plans and continually modify plans at all levels
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Why Planning is Important
• Accuracy – managers need to make
every attempt to collect and utilize all available information at their disposal
• Flexibility – plans can be altered and
changed if the situation changes
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Levels of Planning at General Electric
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Figure 8.2
Page 300
Levels and Types of Planning
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Figure 8.3
Page 301
Levels of Planning
• Corporate-Level Plan– Top management’s decisions pertaining to the
organization’s mission, overall strategy, and structure.
– Provides a framework for all other planning.• Corporate-Level Strategy– A plan that indicates in which industries and
national markets an organization intends to compete.
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Levels of Planning
• Business-Level Plan– Long-term divisional goals that will allow the
division to meet corporate goals– Division’s business-level and structure to achieve
divisional goals• Business-Level Strategy– Outlines the specific methods a division, business
unit, or organization will use to compete effectively against its rivals in an industry
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Levels of Planning
• Functional-Level Plan– Goals that the managers of each function will
pursue to help their division attain its business-level goals
• Functional Strategy– A plan of action that managers of individual
functions can take to add value to an organization’s goods and services
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Time Horizons of Plans
• Time Horizon– Period of time over which they are intended to
apply or endure.• Long-term plans are usually 5 years or more.• Intermediate-term plans are 1 to 5 years.• Short-term plans are less than 1 year.
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Types of Plans
• Standing Plans– used in programmed decision situations
• Policies - general guides to action• Rules - formal written specific guides to action• Standard operating procedures (SOP) - specify an
exact series of actions to follow
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Types of Plans
• Single-Use Plans– Developed to handle non-programmed decision-
making in one-of-a-kind situations• Programs: integrated plans achieving certain goals.• Project: specific action plans to complete programs.
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Scenario Planning
• Scenario Planning (Contingency Planning)– The generation of multiple forecasts of future
conditions followed by an analysis of how to effectively respond to those conditions.
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Determining the Organization’s Mission and Goals
• Defining the Business– Who are our customers?– What customer needs are being satisfied?– How are we satisfying customer needs?
• Establishing Major Goals– Provides the organization with a sense of direction
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Three Mission Statements
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Figure 8.4Page 305