Current event
Student Version
Organizational Goals
Guidance and unified direction
Promotion of good planning
Source of motivation
Evaluation and control
Purposes of Goals
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–2
2
Kinds of Organizational Goals
By Level
Mission statement Strategic goals Tactical goals Operational goals
By Area
Operations Marketing Finance Production
By Time Frame
Long-term goals Intermediate goals Short-term goals
Explicit goals Open-ended goals
Setting Organizational Goals
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–3
3
Planning Flow in Organizations
Strategic Plans (upper management)
Tactical Plans (middle management)
Operational Plans (lower-level managers)
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–4
4
Strategic Plan- Long term plan 3-5 year plan ( survival and growth )
Tactical Plan- Small plans of action to achieve specific goals (actions) to get to the overall long term plan
Operational Plan- Low level plan, day to day plan.
Basic Components of Strategy
Distinctive Competence
Competitive Scope
Resource Deployment
Components of Strategy
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–5
5
Organizational Structure and Strategic Alternatives
Business-level strategy
Functional-level strategy
Operations-level strategy
Corporate-level strategy
Business-level strategy
Functional-level strategy
Operations-level strategy
Market A
Market B
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–6
6
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
SWOT Analysis
Internal
External
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–7
7
Formulating Business-Level Strategies
Overall cost leadership strategy
Focus strategy
Differentiation strategy
Porter’s Generic Strategies
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–8
8
Product Life Cycle
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–9
9
Corporate-Level Strategies
Related diversification (synergy)
Unrelated diversification (risk/return)
Single-product strategy (simplicity)
Strategic Choices
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–10
10
Single product-
Related Diversification-
Unrelated diversification-
Implementing Related Diversification
Similar technology resources
Common marketing and distribution skills
Common brand name and reputation
Common customers and markets
Bases of Diversification Relatedness
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–11
11
Related Diversification’s Advantages
Reduction of business and economic risk
Creation of economies of scale and scope
Sharing of strengths and competencies
Creation of synergy and economic value
Competitive Advantages of Related Diversification
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–12
12
Managing Diversification
GE Business Screen
BCG Matrix
Portfolio Management Techniques
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–13
13
Operational Planning
Single-use Plans
Standing Plans
Types of Operational Plans
Programs
Projects
Policies
Standard operating procedures
Rules and regulations
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–14
14
Ethics is important in a company as well.
Contingency Planning and Crisis Management
Crisis Management
Contingency Planning
Management in Uncertain Situations
© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–15
15