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    Managing: A Competency Based Approach 11 Edition: Don Hellriegel John W. Slocum, Jr. Susan E. Jackson

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    The document discusses strategic and tactical planning. It defines strategic planning as diagnosing the external and internal environments, deciding on a vision and mission, setting goals, and creating strategies to achieve goals and allocate resources accordingly. Tactical planning focuses on specific actions to implement strategies over 1-3 years. The document also discusses different levels of strategy, including corporate-level strategies about what businesses to be in and how to grow, and business-level strategies to achieve competitive advantages in specific markets. Key models discussed include the generic competitive strategies model about low cost or differentiation advantages, and the concept of core competencies providing unique value to customers.

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    Managing: A Competency Based Approach 11 Edition: Don Hellriegel John W. Slocum, Jr. Susan E. Jackson

    Uploaded by

    John
    125 views27 pages
    The document discusses strategic and tactical planning. It defines strategic planning as diagnosing the external and internal environments, deciding on a vision and mission, setting goals, and creating strategies to achieve goals and allocate resources accordingly. Tactical planning focuses on specific actions to implement strategies over 1-3 years. The document also discusses different levels of strategy, including corporate-level strategies about what businesses to be in and how to grow, and business-level strategies to achieve competitive advantages in specific markets. Key models discussed include the generic competitive strategies model about low cost or differentiation advantages, and the concept of core competencies providing unique value to customers.

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    The document discusses strategic and tactical planning. It defines strategic planning as diagnosing the external and internal environments, deciding on a vision and mission, setting goals, and creating strategies to achieve goals and allocate resources accordingly. Tactical planning focuses on specific actions to implement strategies over 1-3 years. The document also discusses different levels of strategy, including corporate-level strategies about what businesses to be in and how to grow, and business-level strategies to achieve competitive advantages in specific markets. Key models discussed include the generic competitive strategies model about low cost or differentiation advantages, and the concept of core competencies providing unique value to customers.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    125 views27 pages

    Managing: A Competency Based Approach 11 Edition: Don Hellriegel John W. Slocum, Jr. Susan E. Jackson

    Uploaded by

    John
    The document discusses strategic and tactical planning. It defines strategic planning as diagnosing the external and internal environments, deciding on a vision and mission, setting goals, and creating strategies to achieve goals and allocate resources accordingly. Tactical planning focuses on specific actions to implement strategies over 1-3 years. The document also discusses different levels of strategy, including corporate-level strategies about what businesses to be in and how to grow, and business-level strategies to achieve competitive advantages in specific markets. Key models discussed include the generic competitive strategies model about low cost or differentiation advantages, and the concept of core competencies providing unique value to customers.

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    of 27

    Formulating Plans and Strategies

    MANAGING: A COMPETENCY
    BASED APPROACH
    11th Edition
    Chapter 7Formulating Plans and Strategies

    Don Hellriegel
    Susan E. Jackson
    John W. Slocum, Jr.

    Prepared by

    Argie Butler
    Texas A&M University

    Formulating Plans and Strategies

    Formulating Plans and Strategies


    q Learning Goals
    1. Describe the importance and core components of
    strategic and tactical planning
    2. Discuss the effects of organizational diversification
    strategies on planning
    3. Describe the basic levels of strategy and planning
    4. State the primary tasks of the strategic businesslevel planning process
    5. Explain the generic competitive strategies model
    6. Explain the integrated strategy/model

    Formulating Plans and Strategies

    Importance and Types of Planning:


    Why Is Planning Important?
    Discover new
    opportunities

    Comprehend
    the ___________
    and risks with
    various options

    Anticipate and
    avoid future
    problems

    Effective
    planning
    helps to

    Develop
    effective courses
    of action (strategies
    and tactics)

    Formulating Plans and Strategies

    What Is Strategic Planning?


    q The process of:
    1. Diagnosing the organizations external
    and internal environments
    2. Deciding on a _____ and mission
    3. Developing overall goals
    4. Creating and selecting general ________
    to be pursued
    5. Allocating resources to achieve
    the organizations goals

    Formulating Plans and Strategies

    What is Strategic Planning?


    q ___________ planningpreparation for unexpected,
    major, and quick changes (positive or negative) in
    the environment that will have a significant impact
    on the organization and require immediate
    responses
    1. Plan for 3 to 5 potentially critical and
    unanticipated events
    2. Supports orderly and speedy adaptation

    Formulating Plans and Strategies

    Interrelated Core Components


    in Strategic Planning
    Vision and Mission

    Resource
    Allocation

    Strategic
    planning

    Strategies

    Organizational
    Goals

    Formulating Plans and Strategies

    What is Strategic Planning?


    q ______:

    Expresses an organizations
    fundamental aspirations and purpose,
    usually by appealing to its members
    hearts and minds

    q eBay:

    To pioneer new communities


    around the world built on commerce,
    sustained by trust, and inspired by
    opportunity

    Formulating Plans and Strategies

    What is Strategic Planning?


    q _______: The organizations purpose or
    reason for existing; often answers
    questions such as:
    1. What business are we in?
    2. Who are we?
    3. What are we about?

    q eBay: To serve as the worlds online


    marketplace for the sale and payment of
    goods and services by a diverse community
    of individuals and businesses

    Formulating Plans and Strategies

    q __________________: the results that the managers


    and others have selected and are committed to
    achieving for the long-term survival and growth of
    the firm
    1. May be expressed qualitatively and quantitatively
    2. Qualitative: simplify the sales process within six
    months
    3. Quantitative: reduce operating costs by $1 billion
    within eighteen months

    Formulating Plans and Strategies

    _________: the major courses of action (choices) selected


    and implemented to achieve one or more goals
    The essence of most good strategies is the need to make many
    choices that are all consistentchoices about production,
    service, design, and so on. Companies cannot randomly
    make a lot of choices that all turn out to be consistent. Its
    statistically impossible. That means companies need to grasp
    at least a part of the whole. As we study the histories of
    successful companies, we see that someone or some group
    developed insight into how a number of choices fit together
    Michael Porter
    Harvard Business School

    Formulating Plans and Strategies

    q Resource allocation: assigning money, people,


    facilities, and other resources among various
    current and new business opportunities
    Key part: allocating money, through _______,
    for various purposes

    Formulating Plans and Strategies

    What is Tactical Planning?

    What to do

    Who will do it

    Making
    decisions
    Normal regarding:
    time horizon of
    _____ years,
    often less

    How to do
    it

    Formulating Plans and Strategies

    Specific courses of
    action

    Implementing
    initiatives or
    improving current
    operations

    Integrated with
    annual budgeting

    Focus on ________
    ___________
    managers

    Formulating Plans and Strategies

    1. What can we do
    better than other
    firms if we enter a
    new market?

    2. What strategic
    resourceshuman,
    financial, and
    othersdo we need to
    succeed in the
    Questions in new market?
    Considering
    4. What can Diversification
    3. Will we
    we learn by
    simply be a player
    diversifying, and
    in the new market
    are we sufficiently
    or will we emerge
    organized to learn
    a winner?
    it?

    Formulating Plans and Strategies

    Types of Diversification Strategies


    Single-business strategy: providing a limited number of
    goods or services to one particular market
    Dominant-business strategy: serving various segments of
    a market
    Related-business strategy: providing
    complementary goods and/or services

    a variety of

    _________________ strategy: providing diverse products


    (goods and/or services) to many different types of
    markets

    Formulating Plans and Strategies

    Strategy Levels and Planning:


    Corporate-Level Strategy
    Focuses on:

    the types of businesses the firm wants to be in,


    ways to acquire or ______ businesses,
    allocation of resources among the businesses, and
    ways to develop learning and synergy among those
    businesses

    q Corporate-level Management
    Guides and reviews performance of strategic units
    ____________________ (SBU): a division or subsidiary
    of a firm that provides a related set of products or
    services and usually has its own mission and goals

    Formulating Plans and Strategies

    Forward
    integration

    Backward
    integration

    Organic:
    ___________ Expansion of
    existing
    diversification
    businesses
    Related
    diversification

    Horizontal
    integration

    Formulating Plans and Strategies

    Corporate-Level Strategy
    q Executive Compensation and Corporate Growth
    Salary, bonuses, stock options, etc.
    ___________: a contractual right granted by a
    company to the employee to purchase a
    defined number of shares of the companys
    stock at a fixed price within a specified period
    of time
    Much criticism in recent years over the design
    and monitoring of executive compensation
    programs

    Formulating Plans and Strategies

    Business-Level Strategy
    The resources allocated and actions taken to achieve
    desired goals in serving a specific market with a
    highly interrelated set of goods and/or services
    Plans and strategies developed for
    1. maintaining or gaining a competitive edge in
    serving its customers,
    2. determining how each ____________ can best
    contribute to its overall effectiveness, and
    3. allocating resources for expansion and among
    its functions

    Formulating Plans and Strategies

    Business-Level Planning
    q Basic Questions
    3. How will customers needs be
    satisfied?
    2. What customer needs will be satisfied?
    1. Who will be served?

    Formulating Plans and Strategies

    The actions and resource commitments


    established for operations, ________,
    human resources, _______, legal services,
    accounting, and the organizations other
    functional areas
    Should support business-level strategies
    and plans

    HR

    Finance

    Other

    Formulating Plans and Strategies

    Examples of Issues in Developing


    Human Resources Strategies
    What type of
    ______ system is
    needed?

    What approach
    should be used to
    _______ qualified
    personnel?

    How should the


    performance of
    employees be
    reviewed?
    How is affirmative
    and fair treatment
    ensured for women,
    minorities, and the
    disabled?

    Formulating Plans and Strategies

    Examples of Issues in Developing


    Finance Strategies
    What is the desired
    mixture of
    borrowed funds
    and ______ funds?

    What portion of
    profits should be
    reinvested and what
    portion paid out as
    _________?

    What criteria should What should be the


    be used in allocating
    criteria for issuing
    financial and human credit to customers?
    resources to projects?

    Formulating Plans and Strategies

    _________________: the strengths that make


    an organization distinctive and competitive by
    providing goods or services that have unique
    value to its customers
    If you look at most of the corporate tragedies in the last five years,
    youll also discover that many of them were companies moving into
    other businesses they really shouldnt have moved into, that werent
    close to their core business and competencies, including Enron,
    Kmart, and Worldcom. If youre having problems in your core
    business and think you can move to another business, its not going to
    work. You have to have strong assets you can build on. The farther
    away people got from their core business and competencies, the lower
    their rate of success.
    Ted Rouse
    Global Business Practice
    Bain and Company

    Broad

    Strategic Target

    Formulating Plans and Strategies

    Generic Competitive Strategies Model

    Narrow

    Differentiation
    Strategy

    Cost Leadership
    Strategy

    Focused
    Differentiation
    Strategy

    Focused
    Cost Leadership
    Strategy

    _________

    ______________

    Sources of Advantage

    Formulating Plans and Strategies

    Individual Topics
    Gamblers Fallacy Bias
    Law of Small Numbers Bias

    presentation on Nov. 14, Monday

    Formulating Plans and Strategies

    Assignment 3
    Think of an important decision you have
    made during the past year. In what ways
    did your process of making the decision
    match or vary from each factor in the
    Bounded Rationality Model of decision
    making?
    due November 21, Monday

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