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Unformatted text preview: Chapter 04 - Planning and Strategic Management Chapter 4 PLANNING AND STRATEGIC MANAGEMENT KEY STUDENT QUESTIONS Strategic planning is not a topic that most students will intuitively understand. Typical undergraduates are not at a stage in their careers where they have had a lot of experience with strategic planning, so it is important to emphasize the basics in this chapter. t 1. “Who does strategic planning?” 2. “What are the differences between strategic, operational, and tactical planning?” 3. “How do organizations determine what is the best strategy for them?” Like many other chapters, this one benefits from extensive examples. See the examples in the text, as well as those shown below in the Class Roadmap and Suggested Responses to Discussion Questions, for ideas. Teaching Tip: Rather than having students do Experiential Exercise 4.2 (Formulating Business Strategy) on their own, I frequently have them do it as an exercise in class, using the university as the company being studied. Even in a large lecture section, you can have students call out Strengths, Weaknesses, Opportunities and Threats, while you capture them on the board or on a PowerPoint slide. Then either use what the students have developed and show them how strategy emerges from the information they have given you, or put them into groups and ask each group to come up with a strategy for the school based on the information they have. If you do this, ask the groups to present their strategies to the class, and discuss which would be most effective and why. Once you have a strategy, it is also helpful to identify operational and tactical goals that would be associated with that strategy. TT CLASS PREWORK ASSIGNMENT EXPERIENTIAL EXERCISE 4.1 - STRATEGIC PLANNING Objectives 1. To study the strategic planning of a corporation recently in the news. Suggested Responses 1. From the Business Week article, after the 9/11 episode there is a tremendous amount of uncertainty. Russell Reynolds Associates and Accel Partners have not clearly identified the business they are in. The former is in the business of creative finance and the latter is in the venture capital business. Top management should state broadly the type of business they are in such as Disney World is in the entertainment business. 2. The key assumption of people and business is that there is tremendous uncertainty as a result of 9/11. Managers are bearish and pessimistic concerning the future. The key assumption is how much risk one is willing to assume to generate a return (risk-return trade-off principle). 4-1 Chapter 04 - Planning and Strategic Management 3. The key strengths of these two firms are the people they have employed. Their ability to forecast future events for their company is vitally important. The weakness of these companies is the ability to forecast future events. In a world of uncertainty, there is a tendency to forecast gloom and doom explaining the bearish sentiments existing among managers. explaining the bearish sentiments existing among managers....
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This note was uploaded on 11/05/2009 for the course MGMT MGMT 330J taught by Professor Kinbonine during the Spring '09 term at Columbia College.
- Spring '09