BNAD 302 9/26/13 Lecture 7 Outline of Last Lecture I. E & J Gallo Wine Company Guest SpeakerII. The BEV Alcohol IndustryIII. Product CatalogIV. Organizational StructureV. Human ResourcesOutline of Current Lecture I. Planning and UncertaintyII. 4 Basic Strategy TypesIII. The Adaptive CycleCurrent LectureI. Planning and Uncertaintya. Planning i. coping with uncertainty by formulating future courses of action to achieved specified resultsii. setting goals and deciding how to achieve themb. Strategic Management Processi. Step 1: Identifying the organization’s current mission, goals, and strategies1. Mission: a statement of the purpose of an organizationa. The scope of its products and services2. Goals: the foundation for further planninga. Measurable performance targetsii. Step 2: Doing an external analysis1. The environmental scanning of specific and general environments2. Focuses on identifying opportunities and threatsiii. Step 3: Doing an internal analysis1. Assessing organizational resources, capabilities, and activities:a. Strengths create value for the customer and strengthen the competitive position of the firm.b. Weaknesses can place the firm at a competitive disadvantage.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Analyzing financial and physical assets is fairly easy, but assessing intangible assets (employee’s skills, culture, corporate reputation, and so forth) isn’t as easy.iv. Step 4: Formulating strategies1. Develop and evaluate strategic alternatives2. Select appropriate strategies for all levels in the organization that provide relative advantage over competitors3. Match organizational strengths to environmental opportunities4. Correct weaknesses and guard against threatsv. Step 5: Implementing strategies1. Implementation: effectively fitting organizational structure and activities to the environment.2. The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements.vi. Step 6: Evaluating results1. How effective have strategies been?2. What adjustments, if any, are necessary?II. 4 Basic Strategy Typesa. Defenders: experts at producing and selling narrowly defined productsb. Analyzers: let other organizations take the risks of product development and marketing and then imitate what seems to work bestc. Prospectors: focus on developing new products and in seeking out new markets, rather than waiting for things to happend. Reactors: make adjustments only when finally forced to by competitionIII. The Adaptive Cyclea. Adaptive Cycle: businesses are continuously cycling through decisions about three kinds of business problems:i. Entrepreneurialii. Engineeringiii. Administrativeb. Mission and Vision Statementsi. Mission statement: expresses the purpose of the organizationii. Vision statement: long-term goal describing “what” an organization wantsto become1. clear sense of the future and the actions needed to get there2. Ex: Next Fresh Eggs: “NestFresh strives to provide you and your family with a more sustainable, humane alternative to conventional eggs, which are produced in caged facilities. We insist on producing cage free and organic eggs to createawareness about the need for humane treatment of egg laying hens and the importance of environmental