University:
California State University, Northridge
Course:
MGT 693 | Strategic Management
Academic year:

2021
Views:

329

Pages:

33
Author:

esfredint7qo

5 Foundations of Planning 5-2 Learning Outcomes  Discuss the nature and purposes of planning.  Explain what managers do in the strategic management process.  Compare and contrast approaches to goal setting and planning.  Discuss contemporary issues in planning. 5-3 5-1 Discuss the nature and purposes of planning. 5-4 What is Planning? Planning: the primary management function. 5-5 Reasons for Planning 5-6 Criticisms of Formal Planning • May create rigidity • Can’t replace intuition and creativity • Focuses attention on today’s success, not tomorrow’s survival • Reinforces success, which may lead to failure 5-7 Formal Planning and Organizational Performance Does it pay to plan?     Higher profits Higher return on assets Improved quality of planning Appropriate implementation 5-8 5-2 Explain what managers do in the strategic management process. 5-9 Strategic Management • What managers do to develop an organization’s strategies 5-10 The Importance of Strategic Management  It has a positive impact on organizational performance  It prepares managers to cope with changing situations  It guides managers to examine relevant factors in planning future action 5-11 Steps in the Strategic Management Process 5-12 Step 1: Identify Mission, Goals and Strategies 5-13 External and Internal Analyses Step 2: External Analysis  Competition  Components of environment  Threats and opportunities Step 3: Internal Analysis  Resources  Capabilities  Core competencies  Organizational strengths and weaknesses 5-14 Formulating, Implementing, and Evaluating Results Step 4: Formulate Strategies  Corporate  Business  Functional Step 5: Implement Strategies Step 6: Evaluate Results  How effective have strategies been?  What adjustments are necessary? 5-15 Strategies Managers Use 5-16 Growth Strategy •An organization expands the number of markets served or products offered • Concentration • Vertical integration • Horizontal integration • Diversification 5-17 Stability and Renewal Strategies • Stability strategy • Renewal strategy •Organization continues •Organization to do what it’s doing addresses declining organizational performance • Retrenchment • Turnaround 1-18 Competitive Strategy Competitive strategy: a strategy for how an organization will compete in its business. 1-19 Competitive Advantage What sets an organization apart; its distinctive edge that comes from its: core competencies and resources 1-20 Gorge is a new businessman wants to open a jeans store. To compete with other existing companies, he decided to customize the pants according to the customer order. He can do a writing or drawing on the jeans to provide higher value with higher price than other competitors. - Which competitive strategy of the following Gorge has chosen to compete? A) Cost leadership strategy B) Differentiation strategy C) Focus strategy D) Stuck in the middle 1-21 Functional Strategy • Those strategies used by an organization’s various functional departments to support the competitive strategy 1-22 Strategic Weapons • • • • • • Customer service Employee skills & loyalty Innovation Quality Social media Big data 1-23 5-3 Compare and contrast approaches to goal setting and planning. 5-24 Setting Goals and Developing Plans Types of goals  Financial versus strategic  Stated versus real 5-25 Traditional Goal Setting 5-26 Management by Objectives • • • • Goal specificity Participative decision making Explicit time period Performance feedback 5-27 Well-Written Goals 5-28 Steps in Goal Setting 1. Review the organization’s mission and employees’ key job tasks. 2. Evaluate available resources. 3. Determine the goals individually or with input from others. 4. Make sure goals are well-written and communicate to all who need to know. 5. Build in feedback mechanisms to assess goal progress. 6. Link rewards to goal attainment. 5-29 Types of Plans 1-30 Developing Plans 1-31 Approaches to Planning  Top-down traditional approach  Development by organizational members 1-32 5-4 Discuss contemporary issues in planning. 5-33 Contemporary Issues  Planning in dynamic environments  Environmental scanning 5-34