The Society

The Society
• The purpose socialization is education.
• The purpose of education is socialization.
( which statement is better?)

Efficiency & Effectiveness
• Effectiveness – The ability to determine appropriate

objectives and reaching the objectives. (doing the right
thing)
• Efficiency – The ability to minimize the use of resources

in achieving organizational objectives. (doing things
right)
Goals / Objectives
• The purpose that an organization strives to achieve.
• Follow the S M A R T formula.

Manager
• The people responsible for directing the efforts aimed

at helping organizations achieve their goals.
Managerial Roles
1.Interpersonal Roles - lead, liaison (go between),
symbol
2. Informational – monitor, share information,

spokesperson
3. Decisional – take initiative, handle disagreements,

allocate resources, negotiate
The Management Process (Process is a systematic method
of handling activities)
1. Planning
2. Organizing
3. Leading
4. Controlling
The Management Areas
1. Human Resources
2. Production/Operations
3. Marketing
4. Finance
Planning
• The process of establishing goals and a suitable

course of action for achieving those goals.
Planning
• Decision Making: The process of identifying and selecting
course of action to solve a specific problem.
• Problem: Situation that occurs when an actual state of affairs
differs from a desired state of affairs.
• Opportunity: Situation that occurs when circumstances offer
an organization the chance to exceed stated goals and
objectives.
Planning
• Strategy - The broad program for defining and

achieving an organization’s objectives; the
organization’s response to its environment over time
Generic Strategies
1. Overall Cost Leadership
2. Differentiation
3. Focus
Five Forces of Competition
1. Intensity of Rivalry
2. Threat of New Entrants
3. Bargaining Power of Suppliers
4. Bargaining Power of Customers
5. Threats from Substitute Products
The Environment
1. Direct –Action Environment
1.1 Internal Stakeholders
1.1.1 Employees
1.1.2 Shareholders & Board of Directors
1.2 External Stakeholders
1.2.1 Customers 1.2.2 Suppliers 1.2.3 Government
1.2.4 Competitors 1.2.5 Financial Inst 1.2.6 Labor
Unions
1.2.7 Media 1.2.8 Special Interest Groups
The Environment
2. Indirect-Action Environment
2.1 Social Variables (demographics, lifestyles, social
values)
2.2 Economic Variables
2.3 Political Variables
2.4 Technological Variables
Importance of Goals
1. Provide a sense of direction
2. Focus our efforts
3. Guide our plans and decisions
4. Help us evaluate our progress
More on the Environment
• SWOT Analysis
• S – Strengths
• W – Weaknesses
• O – Opportunities
• T - Threats
Strategies Defined
• The broad program for defining and achieving

an organization’s objectives; the
organization’s response to its environment
over time.
Strategic Management Defined
• The art and science of formulating, implementing, and evaluating
cross-functional decisions that enable an organization to achieve its
objectives.
• Focuses on integrating management, marketing, finance/accounting,
production/operations, research and development, and computer
information systems to achieve organizational success.
• The purpose of strategic management is to exploit and create new
and different opportunities for tomorrow; long-term planning, in
contrast tries to optimize for tomorrow the trends of today.
Strategy As The Grand Plan
• The concept of strategy is ancient. The word comes from the
Greek strategeia- the art or science of being general. Effective
Greek generals needed to lead an army, win and hold territory,
protect cities from invasion, wipe out the enemy and so forth.
• Each kind of objective required a different deployment of
resources. Likewise, an army’s strategy could be defined as the
pattern of actual actions that it took in response to the enemy.
Planning
• The process of setting goals and choosing the means to achieve
those goals.
• Without plans, managers cannot know how to organize people
and resources effectively.
• Without plans, they cannot lead with confidence or expect
others to follow them.
• Without plans, managers and followers have little chance of
achieving their goals, or knowing when and where they stray
from their paths.
Goals Are Important For At Least Four
Reasons
• Goals provide a sense of direction.

• Goals focus our efforts.
• Goals guide our plans and decisions.
• Goals help us evaluate our progress
The Hierarchy of Plans
Mission Statement
Strategic Plans
Operational Plans
Hierarchy Of Plans
• The mission statement is created by the founder, board

of directors, or top managers.
• The strategic plans are created by top and middle
managers.
• The operational plans are created by middle and first-
line managers
Differences Between Strategic And
Operational Plans
• Time horizons - Strategic plans tend to look ahead several years
or even decades. For operational plans, a year is often the
relevant time period.
• Scope - Strategic plans affect a wide range of organizational
activities whereas operational plans have a narrow and more
limited scope.
• Degree of detail - Often strategic goals are stated in terms that
look simplistic and generic. Operational plans, as derivatives of
strategic plans are stated in relatively finer detail.
Strategic Management Process
Goal Setting
Strategic
Planning
Strategy Formulation
Administration
Strategy
Implementation
Strategic Control
The Strategic Management Process
• Strategic management provides a disciplined way i for
managers to make sense of the environment in which the
organization operates, and then to act:
• Strategic planning - the sense-making activity. This includes
both the goal setting and the strategy formulation processes.
• Strategy implementation – actions based on that kind of
planning, including administration and strategic control
stages.
The Strategic Management Process
• Strategic management provides a disciplined way i for
managers to make sense of the environment in which the
organization operates, and then to act:
• Strategic planning - the sense-making activity. This includes
both the goal setting and the strategy formulation processes.
• Strategy implementation – actions based on that kind of
planning, including administration and strategic control stages.
Three Levels of Strategy
Multi-business
Corporation
Strategic Strategic Strategic

Business Unit Business Unit Business Unit
Research & Production / Finance

Marketing
Development Operations
Three Levels of Strategy
• Corporate-level strategy – Formulated by top management to
oversee the interests and operations of organizations made up
of more than one line of business: What kind of businesses
should the company engage in?
• Business-unit strategy – concerned with managing the interests
and operations of a particular line of business: How will the
business compete within its market?
• Functional-level strategy – formulated by a specific functional
area in an effort to carry out a business unit strategy:
Hierarchy of Strategic and Operational Plans of a Multi-
Business Organization Corporate Strategy
Business-Unit Strategies
Functional-Level Strategies
Operating Plans
ESG As Part of Corporate Strategy
• Environment
• Social
• Governance
Vision and Mission Statements
• Vision – Answers the question “ What do we want to become?” The
first step in strategic planning. Example from an eye clinic “ Our
vision is to take care of your vision” The vision of Institute of
Management Accountants “ Global leadership in education,
certification, and practice of management accounting and financial
management”
• Mission statements are “enduring statements of purpose that
distinguish one business from other similar firms. Mission statements
identify the scope of firms operations in product and market terms.
Address the basic question that faces all strategists “ What is our
business?”
Mission Statements
• A clear mission statement describes the values

and priorities of an organization.

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The Society

• The purpose socialization is education.

• The purpose of education is socialization.

( which statement is better?)

• Effectiveness – The ability to determine appropriate

• Efficiency – The ability to minimize the use of resources

• The purpose that an organization strives to achieve.

• Follow the S M A R T formula.

• The people responsible for directing the efforts aimed

2. Informational – monitor, share information,

3. Decisional – take initiative, handle disagreements,

• The process of establishing goals and a suitable

• Strategy - The broad program for defining and

1. Overall Cost Leadership

• The broad program for defining and achieving

• Goals provide a sense of direction.

• The mission statement is created by the founder, board

Strategic Strategic Strategic

Research & Production / Finance

• A clear mission statement describes the values

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