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Planning & Strategic Management

U NIT 4- PLANNING SKILLS OF MANGEMENT Ch. 10 “Planning & Strategic Management” 10.1 (Page1A/1B ) SLIDES 1-6, 10.2 (Page 2) SLIDES 7-12. Planning & Strategic Management. Formal Planning- Strategic studying of an issue and the preparation of a written document to deal with the problem. 3 RANGES

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Planning & Strategic Management

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  1. UNIT 4- PLANNING SKILLS OF MANGEMENTCh. 10 “Planning & Strategic Management”10.1 (Page1A/1B) SLIDES 1-6, 10.2 (Page 2) SLIDES 7-12 Planning & Strategic Management

  2. Formal Planning- Strategic studying of an issue and the preparation of a written document to deal with the problem. 3 RANGES • Short term- 1 year plan • Long-range- 3 to 5 years plus • Intermediate- 1-3 year (the gap between short term and long range plans)

  3. Strategy- an outline of basic management steps to achieve a goal • I. Grand or corporate strategies- Overall (Big Picture) direction for company. • A) Growth Strategies- steps to increase sales or products • Concentration- extend the sale of current products • Vertical Integration- extend into new markets (locations) • Diversification- introduce new or better products

  4. Strategies (continued) • B) Stability Strategy- keeping the company operating on the same level- no new development. • C) Defensive Retrenchment Strategy- Developing a plan for a company that is losing sales or profit. • Turnaround- plan to regain success • Diverstiture- to sell a portion of the business (non-profit part of business) • Liquidation- entire company is sold or dissolved D) Combination Strategy- using several of these strategies at once to maximize profit.

  5. II. Business Strategy- Plans that only affect 1 or 2 departments of business • Overall cost leadership- plan to produce and deliver current product at a lower cost. • Differentiation- making product(s) more unique/different.

  6. III. Functions Strategies- Short range operation plan • 5 most common function plans • 1. Sales & Marketing- new products and selling techniques • 2. Production- making more products faster • 3. Finance- controlling expenses • 4. Research & Development- Making new or better products • 5. Personnel- Managing employees

  7. Section 10.2 • Strategic Management- Application of the basic planning process by management. • Strategic Management Approach (list and define 3 phrases) Formation- developing the plan Implementation- activating the plan Evaluation- analyzing/adjusting the plan Formulating Strategy- Total vision and business level strategy planning.

  8. Mission Statement • Mission Statement- a company’s written statement of purpose- the vision for the company *objectives of the MS • Common vision and purpose • Motivating resource • Standard of values • Business Culture of company

  9. Goals- Companies direction, what do we want to accomplish • Policies- Rules of a company • Procedures- Detailed steps of operating within those rules. • Rules- limits and guidelines

  10. SWOT analysis- A tool to evaluate the health of a company

  11. Implementing Strategy- How to activate plan • Evaluating Strategy- How to analyze and adjust the plan Managers should ask • Does the plan need revising • What are the possible problem areas List the 3 basic strategy evaluation activities • Review all factors (internal and external) • Measure performance (increase sales, decrease costs) • Taking corrective action

  12. ONLINE RESEARCH • APPLE Research: Mission statement, various products, SWOT analysis: Strengths Weaknesses Opportunities Threat

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