Planning and

Managing
Dental
Services
Part 2

Dr.Noha Anan
 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

Figure 8.1
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The Nature of the Planning Process
To perform the planning task, managers:
1. Establish where an organization is at the
present time
2. Determine its desired future state
3. 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  Continuity
└ at any one time only └ planning is an ongoing
one central, guiding process in which
plan is put into managers build and
operation refine previous plans
and continually modify
plans at all levels

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 Why Planning is Important
 Accuracy  Flexibility
└ managers need to └ plans can be altered
make every attempt to and changed if the
collect and utilize all situation changes
available information
at their disposal

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 Levels of Planning at General
Electric

Figure 8.2

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 Levels and Types of Planning

Figure 8.3 8-14

 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

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 Levels of Planning
 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

Figure 8.4 8-24

 Establishing Major Goals
 Strategic leadership
└ the ability of the CEO and top managers to convey
a compelling vision of what they want to achieve
to their subordinates

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 Formulating Strategy
 Strategic Formulation
└ The development of a set of corporate, business,
and functional strategies that allow an
organization to accomplish its mission and
achieve its goals

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 Formulating Strategy
 SWOT Analysis
└ A planning exercise in which managers identify
organizational strengths (S) and weaknesses (W)
and environmental opportunities (O) and
threats (T).

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Questions for SWOT Analysis

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Planning and Strategy Formulation

Figure 8.5

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 The Five Forces
 Level of rivalry in an industry
 Potential for new entrants
 Power of large suppliers
 Power of large customers
 Threat of substitute products

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 The Five Forces
 Hypercompetition
└ industries that are characterized by permanent,
ongoing, intense, competition brought about by
advancing technology or changing customer
tastes and fads and
fashions

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 Formulating Business-Level
Strategies
 Low-Cost Strategy  Differentiation
└ Driving the └ Distinguishing an
organization’s total organization’s products
costs down below the from the products of
total costs of rivals. competitors on
dimensions such as
product design,
quality, or after-sales
service.

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 Formulating Business-Level
Strategies
 “Stuck in the Middle”
└ Attempting to simultaneously pursue both a low
cost strategy and a differentiation strategy.
└ Difficult to achieve low cost with the added costs
of differentiation.

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 Formulating Business-Level
Strategies
 Focused Low-Cost  Focused
└ Serving only one Differentiation
market segment and └ Serving only one
being the lowest-cost market segment as the
organization serving most differentiated
that segment. organization serving
that segment.

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Principal Corporate-Level
Strategies

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 Related Diversification
 Synergy
└ Obtained when the value created by two divisions
cooperating is greater than the value that would
be created if the two divisions operated
separately
and independently

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 International Expansion
 Multi-domestic Strategy
└ Customizing products and marketing strategies to
specific national conditions
└ Helps gain local market share
└ Raises production costs

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Four Ways to Expand
Internationally

Figure 8.7

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 Planning and Implementing
Strategy
1. Allocate implementation responsibility to the
appropriate individuals or groups.
2. Draft detailed action plans for implementation.
3. Establish a timetable for implementation
4. Allocate appropriate resources
5. Hold specific groups or individuals responsible for
the attainment of corporate, divisional, and
functional goals.

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 Video Case: State Farm Bank
 Why is planning important for organizations
like State Farm?
 What kind of diversification took place when
State Farm entered the banking field?
 How does State Farm differentiate its banking
services from those of its competitors?

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