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bateman.Chap004.2 - Planning and Strategic Management...

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Unformatted text preview: Planning and Strategic Management Management Question of the Day Question Wal­Mart is adding RFID tags to clothing to reduce its supply chain costs on a long term basis. • As technology expands privacy concerns develop – now Wal­Mart will know the exact article you buy.Is this acceptable? • What is an RFID tag? • How might consumers benefit from RFID tags? “Manage your destiny, or Manage someone else will.” ­Jack Welch, ­Jack Welch, Former CEO, General Electric 4-3 The Planning Process The Strategic Management Strategic Set of decisions and actions used to implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals General plan of major action to achieve long­term goals Falls into three general categories 1. Growth 2. Stability 3. Retrenchment Tactical and Tactical Operational Planning Strategic goals and plans are the foundation for planning done by middle­level and frontline managers Tactical planning Operational planning A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization The process of identifying the specific procedures and processes required at lower levels of the organization For middle­level and frontline managers to accomplish their jobs, it is critical that top managers communicate the strategy to all levels of the organization QUESTION QUESTION _______ are the actions or means managers intend to use to achieve organizational goals. A. Mission B. Plans C. Strategies D. Services Example of a Strategy Map Example Hierarchy of Goals and Plans Hierarchy Strategic Management Strategic A process that involves process managers from all parts of an organization in the formulation and implementation of strategic goals and strategies. goals The Strategic Management Process Process QUESTION QUESTION An organization’s ___ is the An basic purpose and scope of operations. operations. A. Mission B. Strategy C. Goal D. Policy Resources and Core Competencies Competencies Figure 4.5 4­13 Analysis of Internal Strengths and Weaknesses and Benchmarking • process of assessing how well one company’s basic functions and skills compare with those of another company or set of companies. • goal of benchmarking is to thoroughly understand the “best practices” of other firms and to undertake actions to achieve both better performance and lower costs 4­14 SWOT Analysis and Strategy Formulation Formulation SWOT analysis • A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. 4­15 Corporate Strategy Corporate horizontal Types of Corporate Strategies Types of Corporate Strategies Types Corporate strategy identifies a set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities Concentration Strategy employed for an organization that operates a single business and competes in a single industry Vertical integration Acquisition or development of new businesses that produce parts or components of the organization’s product Concentric diversification Strategy used to add new businesses that produce related products or are involved in related markets and activities Conglomerate diversification Strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities Global Corporate Strategies Global Need for Global Integration High Low Globalization Strategy • Treats world as a single global market • Standardizes global products/advertising strategies Export Strategy •Domestically focused •Exports a few domestically produced products to selected countries Low Transnational Strategy • Seeks to balance global efficiencies and local responsiveness • Combines standardization and customization for product/advertising strategies Multi-domestic Strategy • Handles markets independently for each country • Adapts product/advertising to local tastes and needs Need for National Responsiveness High Portfolio Strategy Portfolio BCG Matrix Business Strategy Business Business strategy describes the major actions by which a business competes in a particular market Low­cost strategies Differentiation strategy Functional strategies A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no­ frills product A strategy and organizations uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions Strategies implemented by each functional area of the organization to support the organization’s business strategy Return to original slide Strategy Results Strategy Intended Emergent Realized Design a Stop Sign without a clear Strategy Strategy http://www.youtube.com/watch?v=Wac3aGn5t Strategy Implementation Strategy 1. 2. 3. 4. 4­23 Define strategic risks Assess organization capabilities Develop an implementation agenda Create an implementation plan ...
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