Professional Documents
Culture Documents
Fundamental of Planning - Robbins
Fundamental of Planning - Robbins
Chapter 3 3
Foundations of Planning
Exhibit 3.1
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Criticisms Of Formal Planning
Planning may create rigidity.
Plans cant be developed for a dynamic
environment.
Formal plans cant replace intuition and
creativity.
Planning focuses managers attention on todays
competition, not on tomorrows survival.
Formal planning reinforces success, which may
lead to failure.
Exhibit 3.2
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Planning: Focus and Time
Strategic plans
Plans that are organization-wide, establish overall
objectives, and position an organization in terms of
its environment
Tactical plans
Plans that specify the details of how an
organizations overall objectives are to be achieved
Short-term plans
Plans that cover less than one year
Long-term plans
Plans that extend beyond five years
Exhibit 3.3
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Specific and Directional Plans
Specific plans
Plans that have clearly defined objectives and
leave no room for misinterpretation.
What, when, where, how much, and by whom
(process-focus)
Directional plans
Flexible plans that set out general guidelines.
Go from here to there (outcome-focus)
Exhibit 3.4
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Elements of MBO
Goal specificity
Participative decision making
Explicit time period for performance
Performance feedback
Is There a Downside to
MBO?
Top
Participation
Management
Exhibit 3.5
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The Organizations Current Identity
Mission statement
Defines the present purpose of the
organization.
Objectives
Specific measures (milestones) for
achievement, progress, and performance.
Strategic plan
A document that explains the business
founders vision and describes the strategy and
operations of that business.
SWOT analysis
Analysis of an organizations strengths,
weaknesses, opportunities, and threats in
order to identify a strategic niche that the
organization can exploit
Exhibit 3.6
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SWOT Analysis
Strengths (strategic)
Internal resources that are available or things that an
organization does well.
Core competency: a unique skill or resource that represents
a competitive edge.
Weaknesses
Resources that an organization lacks or activities that it
does not do well.
Opportunities (strategic)
Positive external environmental factors.
Threats
Negative external environmental factors.
Strategy Implementation
Formulation and Execution
Evaluation
Source: Cited in D Harold and F. J. Bartos, Optimize Existing Processes to Achieve Six Sigma Capability, Exhibit 3.7
reprinted from Control Engineering Practice, 1998, p. 87, with permission from Elsevier Science.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 332
Identifying A Competitive Advantage
Environmental sources of entrepreneurial
opportunity
The unexpected
The incongruous
The process need
Industry and market structures
Demographics
Changes in perception
New knowledge