Professional Documents
Culture Documents
Planning - Process and Techniques
Planning - Process and Techniques
Techniques
Managers Planning
Why plan?
Process
Step 1 Situational Analysis
Step 2 Alternative Goals and Plans
Step 3 Goal and Plan Evaluation
Step 4 Goal and Plan Selection
Step 5 Implementation
Step 6 Monitor and Control
Decision Making Stages and
Formal Planning Steps
Situational Analysis
A process planners use, within
time and resource constraints, to
gather, interpret, and summarize
all information relevant to the
planning issue under
consideration.
Alternative Goals and Plans
Stress creativity and encourage managers and
employees to think in broad terms about their jobs.
Goal
A target or end that management desires to reach
Specific, measurable, attainable, relevant, time-
bound - SMART
Alternative Goals and Plans
Plans
The actions or means managers intend to use to
achieve organizational goals
Contingency plans
sets of actions to be taken when a company’s initial
plans have not worked well or if events in the
external environment require a sudden change
Benefits of Planning
Benchmarking
process of assessing how well one company’s basic
functions and skills compare with those of another
company or set of companies.
goal of benchmarking is to thoroughly understand
the “best practices” of other firms and to undertake
actions to achieve both better performance and
lower costs
SWOT Analysis and Strategy
Formulation
SWOT analysis
A comparison of strengths,
weaknesses, opportunities, and threats
that helps executives formulate
strategy.
SWOT Analysis and Strategy
Formulation
Corporate strategy
The set of businesses, markets, or industries in which an
organization competes and the distribution of resources
among those entities
Concentration
A strategy employed for an organization that operates a
single business and competes in a single industry.
Summary of Corporate
Strategies
SWOT Analysis and Strategy
Formulation
Vertical integration
The acquisition or development of new businesses
that produce parts or components of the
organization’s product
Concentric diversification
A strategy used to add new businesses that produce
related products or are involved in related markets
and activities.
SWOT Analysis and Strategy
Formulation
Low-cost strategy
A strategy an organization uses to build competitive
advantage by being efficient and offering a standard, no-
frills product
Differentiation strategy
A strategy an organization uses to build competitive
advantage by being unique in its industry or market
segment along one or more dimensions.
Strategy Implementation
1. Define strategic risks
2. Assess organization capabilities
3. Develop an implementation agenda
4. Create an implementation plan
Strategic Control
Strategic control system
A system designed to support
managers in evaluating the
organization’s progress regarding its
strategy and, when discrepancies
exist, taking corrective action.
BCG Matrix