Planning and Strategic ManagementDecision Making Stages and Formal Planning StepsPlanningThe Basic Planning ProcessSituational AnalysisAlternative Goals and PlansSlide 7Goal and Plan EvaluationGoal and Plan SelectionImplementationMonitor and ControlStrategic PlanningSlide 13Slide 14Hierarchy of Goals and PlansTactical and Operational PlanningSlide 17Slide 18The Strategic Management ProcessEstablishment of Mission, Vision, and GoalsEnvironmental AnalysisAnalysis of External Opportunities and ThreatsAnalysis of Internal Strengths and WeaknessesInternal Resource AnalysisResources and Core CompetenciesSlide 26SWOT Analysis and Strategy FormulationSlide 28Summary of Corporate StrategiesSlide 30ORGANIZATIONAL STRATEGIESSlide 32Strategy ImplementationStrategic ControlBCG MatrixCopyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinPlanning and Planning and Strategic Strategic ManagementManagementChapter 04Chapter 04Decision Making Stages and Decision Making Stages and Formal Planning StepsFormal Planning Steps4-2Figure 4.1PlanningPlanningPlanning conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future.a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization.4-3The Basic Planning ProcessThe Basic Planning ProcessStep 1 Situational AnalysisStep 2 Alternative Goals and PlansStep 3 Goal and Plan EvaluationStep 4 Goal and Plan SelectionStep 5 ImplementationStep 6 Monitor and Control4-4Situational AnalysisSituational Analysis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.4-5Alternative Goals and PlansAlternative Goals and PlansShould 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 - SMART4-6Alternative Goals and PlansAlternative 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 change4-7Goal and Plan Evaluation Goal and Plan Evaluation Managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan.Must prioritize those goals and even eliminate some of them.Managers must consider carefully the implications of alternative plans for meeting high priority goals.4-8Goal and Plan SelectionGoal and Plan SelectionManagers will select the option that is most appropriate and feasible The evaluation process will identify the priorities and trade-offs among the goals and plansScenario A narrative that describes a particular set of future conditions.4-9Implementation Implementation Managers and employees must understand the plan, have the resources to implement it, and be motivated to do soSuccessful implementation requires a plan to be linked to other systems in the organization, particularly the budget and reward systems4-10Monitor and ControlMonitor and ControlManagers must continually monitor the actual performance of their work units against the unit’s goals and plans. Manager’s also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes4-11Strategic PlanningStrategic PlanningStrategic planningA set of procedures for making decisions about the organization’s long-term goals and strategiesStrategic goals major targets or end results that relate to the long-term survival, value, and growth of the organization.4-12Strategic PlanningStrategic PlanningStrategy A pattern of actions and resource allocations designed to achieve the organization’s goals4-13Strategic PlanningStrategic Planning1. Where will we be active? 2. How will we get there?3. How will we win in the marketplace? 4. How fast will we move and in what sequence will we make changes? 5. How will we obtain financial returns4-14Hierarchy of Goals and PlansHierarchy of Goals and Plans4-15Figure 4.2Tactical and Operational PlanningTactical and Operational PlanningTactical planningA set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.4-16Tactical and Operational PlanningTactical and Operational PlanningOperational planningThe process of identifying the specific procedures and processes required at lower levels of the organization.4-17Strategic PlanningStrategic PlanningStrategic managementA process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.4-18The Strategic Management ProcessThe Strategic Management Process4-19Figure 4.4Establishment of Mission, Vision, and GoalsEstablishment of Mission, Vision, and GoalsMissionAn organization’s basic purpose and scope of operations.4-20Environmental Environmental AnalysisAnalysis4-21Table 4.1Analysis of External Opportunities and Analysis of External Opportunities and ThreatsThreatsStakeholdersGroups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies4-22Analysis of Internal Strengths and Analysis of Internal Strengths and WeaknessesWeaknessesResourcesInputs to a system that can enhance performanceTangible, intangible assets4-23Internal Resource AnalysisInternal Resource Analysis4-24Table 4.2Resources and Core CompetenciesResources and Core Competencies4-25Figure 4.5Analysis of Internal Strengths and Analysis of Internal Strengths and WeaknessesWeaknesses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 costs4-26SWOT Analysis and Strategy