Date post: | 20-Dec-2015 |
Category: |
Documents |
View: | 244 times |
Download: | 2 times |
PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook
The Strategic and Operational The Strategic and Operational Planning ProcessPlanning ProcessThe Strategic and Operational The Strategic and Operational Planning ProcessPlanning Process
Chapter 5Chapter 5Chapter 5Chapter 5
Copyright Copyright © © 2003 South-Western/Thomson Learning. All rights reserved.2003 South-Western/Thomson Learning. All rights reserved.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–2
Learning OutcomesLearning Outcomes
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–3
Learning Outcomes (cont’d)Learning Outcomes (cont’d)
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–4
PlanningPlanning
• Planning Dimensions –The level of management developing the plan–The type of plan (strategic or operational)–The scope of the plan (broad or narrow)–The time horizon of the plan (short- or long-term)–The plan’s repetitiveness (standing or single-use)
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–5
Planning DimensionsPlanning Dimensions
Exhibit 5–1
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–6
Types of PlansTypes of Plans
• Standing Plans–Policies, procedures, and rules developed for
handling repetitive situations.–Policies
• General guidelines to be followed when making decisions.
–Procedures• A sequence of actions to be followed in order to achieve
an objective.
–Rules• A statement of exactly what should or should not be
done.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–7
Types of Plans (cont’d)Types of Plans (cont’d)
• Single-Use Plans–Programs and budgets developed for handling
nonrepetitive situations.–Program
• A set of activities designed to accomplish an objective over a specified period of time.
–Program development• Set project objectives.
• Break the project down into a sequence of steps.
• Assign responsibility for each step.
• Establish starting and ending times.
• Determine the resources needed for each step.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–8
Types of Plans (cont’d)Types of Plans (cont’d)
• Single-Use Plans–Budget
• Represents the funds allocated to operate a unit for a fixed period of time.
• Is a planning tool initially and becomes a control tool after implementation of the plan.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–9
Standing versus Single-Use PlansStanding versus Single-Use Plans
Exhibit 5–2
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–10
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–11
Types of Plans (cont’d)Types of Plans (cont’d)
• Contingency Plans–Alternative plans to be implemented if
uncontrollable events occur.–Developing a contingency plan
• What might go wrong in my department?
• How can I prevent it from happening?
• If it does occur, what can I do to minimize its effect?
• Why Managers Don’t Plan–Claimed lack of time–Tendency toward action
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–12
Strategic and Operational PlanningStrategic and Operational Planning
• Strategic Planning–The process of developing a mission and long-
range objectives and determining in advance how they will be accomplished.
• Operational Planning–The process of setting short-range objectives and
determining in advance how they will be accomplished.
• Strategy– A plan for pursuing the mission and achieving
objectives.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–13
The Strategic ProcessThe Strategic Process
Exhibit 5–3
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–14
Strategic PlanningStrategic Planning
• Corporate-Level Strategy–The plan for managing multiple lines of
businesses
• Business-Level Strategy–The plan for managing one line of business
• Functional-Level Strategy–The plan for managing one area of the business
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–15
Strategic and Operational LevelsStrategic and Operational Levels
Exhibit 5–4
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–16
Industry and Competitive Situation Analysis
Industry and Competitive Situation Analysis
• Situation Analysis–Draws out those features in a company’s
environment that most directly frame its strategic window of options and opportunities.
• Five Competitive Forces (Porter)–Rivalry among competing sellers in the industry–Threat of substitute products and services–Potential new entrants–Power of suppliers–Power of buyers
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–17
Starbuck’s Five-Force Competitive Analysis
Starbuck’s Five-Force Competitive Analysis
Exhibit –5
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–18
Company Situation Analysis StepsCompany Situation Analysis Steps
Exhibit 5–6
1. Assessment of the present strategy based on performance.
1. Assessment of the present strategy based on performance.
2. SWOT analysis.2. SWOT analysis.
3. Competitive Strength Assessment (competitive advantage).
3. Competitive Strength Assessment (competitive advantage).
4. Conclusions concerning competitive position.
4. Conclusions concerning competitive position.
5. Determination of the strategic issues and problems that need to be addressed through strategic processes.
5. Determination of the strategic issues and problems that need to be addressed through strategic processes.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–19
SWOT Analysis for Starbucks Coffee
SWOT Analysis for Starbucks Coffee
Exhibit 5–7
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–20
Competitive Strength Assessment for Starbucks Coffee
Competitive Strength Assessment for Starbucks Coffee
Exhibit 5–8
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–21
Competitive AdvantageCompetitive Advantage
• Core Competency–A functional capability (strength) that the firm
does well and one that creates a competitive advantage for the firm.
• Benchmarking–The process of comparing an organization’s
products or services and processes with those of other companies.
• Environmental Scanning–Searching the external environment for
opportunities and threats.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–22
Setting ObjectivesSetting Objectives
• Objectives–State what is to be accomplished in singular,
specific, and measurable terms with a target date.
• Goals–Are general targets to be accomplished that are
translated into actionable objectives.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–23
Writing Objective ModelWriting Objective Model
Model 5–1
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–24
Criteria That Objectives Should MeetCriteria That Objectives Should Meet
Exhibit 5–9
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–25
Management by Objective (MBO)Management by Objective (MBO)
• Management by ObjectivesStep 1. Set individual objectives with plans
jointly with employees.
Step 2. Give feedback and evaluate.
Step 3. Reward performance according to results.
• Sources of MBO Failures–Lack of top management commitment and follow-
through on MBO.–Employees’ negative beliefs about management’s
sincerity in its efforts to include them in the decision-making process.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–26
Corporate-Level StrategyCorporate-Level Strategy
• Grand Strategies–Growth–Stability–Turnaround and
retrenchment–Combination
• Growth Strategies–Concentration–Backward and
forward integration–Related and Unrelated
diversification
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–27
Corporate Grand and Growth StrategiesCorporate Grand and Growth Strategies
Exhibit 5–10
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–28
Portfolio Analysis: BCG MatrixPortfolio Analysis: BCG Matrix
Exhibit 5–11
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–29
The Entrepreneurial Strategy MatrixThe Entrepreneurial Strategy Matrix
Exhibit 5–12a
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–30
The Entrepreneurial Strategy Matrix:
Appropriate Strategies
The Entrepreneurial Strategy Matrix:
Appropriate Strategies
Exhibit 5–12b
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–31
Business-Level StrategiesBusiness-Level Strategies
• Adaptive Strategies–Prospecting
• Aggressively offering new products and/or entering new markets.
–Defending• Staying with the present product line and markets, and
maintaining or increasing customers.
–Analyzing• A midrange approach between prospecting and
defending, moving cautiously into new markets.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–32
Selecting Adaptive StrategiesSelecting Adaptive Strategies
Exhibit 5–13
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–33
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–34
Competitive StrategiesCompetitive Strategies
• Differentiation–Competing on the basis of features that
distinguish one firm’s products or services from those of another.
• Cost Leadership–The firm with the lowest total overall costs has a
competitive advantage in price-sensitive markets.
• Focus–Concentrating competitive efforts on a particular
market segment, product line, or buyer group.
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–35
Product Life Cycle: StarbucksProduct Life Cycle: Starbucks
Exhibit 5–14
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–36
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–37
Functional-Level Operational StrategiesFunctional-Level Operational Strategies
• Marketing–Which products to produce; how will they be
packaged, advertised, distributed, and priced?
• Operations–Which processing systems to use to convert
inputs into outputs with quality and efficiency?
• Human Resources–How to recruit, select, train, evaluate, and
compensate the workforce?
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 5–38
Functional-Level Operational Strategies (cont’d)
Functional-Level Operational Strategies (cont’d)
• Finance–How to acquire the necessary equity or debt
capital, meet the investment returns expectations of investors and shareholders; maintain an accounting system that optimizes the use of financial resources.
• Other Functional Strategies–Research and development (R&D) is important to
remaining competitive.