Management Fundamentals

Concepts, Applications, Skills Development

The Strategic & Operational Planning Process

4A

Strategic Planning
The process of developing a mission and long range planning objectives and determining in advance how they will be accomplished.
4-1

Operational Planning
The process of setting shortrange objectives and determining in advance how they will be accomplished.
4-2

The Strategic Process

1. Develop mission

5. Implement & control strategies

4. Develop strategies

2. Analyze environment

3. Set objectives

4-3

3 Levels of Strategies
Corporate Business
Functional
4-4

Strategic & Operational Levels

Management Level Strategy Level Planning Level/ Time Range Strategic/Long Strategic/Long Operational/Short Upper Upper and Middle Middle and Lower Corporate Strategy Business Strategy Functional Strategies

Operations

Marketing

Finance

Human Resources

Others
4-5

Rivalry among competing sellers

Threat of substitute products/services

5 Competitive Forces
Potential new entrants Power of suppliers Power of buyers

4-6

SWOT Analysis
An organizations internal environmental strengths and weaknesses and external environmental opportunities and threats are determined.
4-7

Benchmarking
The process of comparing an organizations products and processes with those of other companies.
4-8

Goals
General targets to be accomplished
4-9

Objectives
What is to be accomplished in singular, specific, and measurable terms with a target date.
4-10

Writing Objectives Model

Criteria:
(1) (2) (3) (4) Infinitive + Action verb + Singular, specific, measurable result + Target date

4-11

Management By Objectives
The process in which managers and employees jointly set objectives for the employees, evaluate the performance, and reward according to results.
4-12

MBO

Corporate Grand & Growth Strategies

Grand Strategy

Growth

Stability

Turnaround & Retrenchment

Combination

Growth Strategies: Concentration Integration Diversification

4-13

Selecting Adaptive Strategies

Rate of

Environmental
Change

Potential Growth Rate

Adaptive Strategy

Similar to Grand Strategy

Fast Moderate Slow

High
Moderate Low

Prospector Analyzer Defender

Growth Combination

Stability

4-14

Product Life Cycle

Product Life Cycle Stages Over Time

Product Life Cycle Stages

Sales

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

4-15

Functional-Level Operational Strategies

Marketing Operations HR Finance R & D
4-16