Beruflich Dokumente
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1.
2.
3.
4.
5.
procedure
program
rule
situation analysis (SWOT)
strategic business units (SBUs)
strategic management
strategic plan
strategy
strategy formulation
strategy implementation
stretch goals
tactic
tactical plan
vision
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duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER OUTLINE
I. INTRODUCTION
II. PLANNING DEFINED
A. Vision, Mission, and Core Values
B. Goals
C. Plans
D. Strategies and Tactics
E. Determining Resource Requirements
III. TYPES OF PLANS
A. Strategic Plans
B. Tactical Plans
C. Operational Plans
1. Single-Use Plans
2. Standing Plans
3. Operational Objectives
D. Unified Hierarchy of Goals
E. Contingency Plans
IV. BASIC PLANNING PROCESS
A. Setting Objectives
B. Analyzing and Evaluating the Environment
C. Identifying the Alternatives
D. Evaluating the Alternatives
E. Selecting the Best Solution
F. Implementing the Plan
G. Controlling and Evaluating the Results
V. MAKING PLANS EFFECTIVE
A. Improving the Quality of Assumptions and Forecasts
B. Planning Tools
1. Management by Objectives (MBO)
2. Linear Programming
C. BARRIERS TO PLANNING
1. Inability to Plan
2. Lack of Commitment to the Planning Process
3. Inferior Information
4. Lack of Focus on the Long Term
5. Overreliance on the Planning Department
6. Overemphasis on Controllable Variables
VI. NATURE OF STRATEGIC PLANNING AND STRATEGIC MANAGEMENT
A. Elements of Strategic Planning
1. Scope
2. Resource Deployment
3. Distinctive Competitive Advantage
4. Synergy
B. Responsibility for Strategic Planning
C. Strategy Formulation Versus Strategy Implementation
D. Levels of Strategy
1. Corporate-Level Strategy
2. Business-Level Strategy
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3. Functional-Level Strategy
VII. STRATEGIC PLANNING PROCESS
A. Creating a Mission Statement and Goals
B. Situation Analysis (SWOT)
C. Analyzing the Internal and External Environments
D. Sources of Information
E. Internal Strengths and Weaknesses
1. External Threats and Opportunities
F. Reassessing the Mission Statement and Goals
G. Formulating Strategies
H. Implementing Strategies
1. Leadership
2. Organizational Structure
3. Human Resources
4. Information and Control Systems
I. Monitoring and Evaluating Results
VIII. FORMULATING CORPORATE-LEVEL STRATEGY
A. Grand Strategies
1. Growth Strategy
2. Integration Strategy
3. Diversification Strategy
4. Retrenchment Strategy
5. Stability Strategy
B. Portfolio Strategy
C. FORMULATING BUSINESS-LEVEL STRATEGY
D. Adaptive Strategies
1. Prospector Strategy
2. Defender Strategy
3. Analyzer Strategy
4. Reactor Strategy
E. Competitive Strategies
1. Differentiation Strategy
2. Cost-Leadership Strategy
IX. FORMULATING FUNCTIONAL-LEVEL STRATEGY
A. Marketing Strategy
B. Production Strategy
C. Human Resources Strategy
D. Financial Strategy
E. Research and Development Strategy
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Enrichment Vignette
The concepts of this chapter can be applied to your own life to help you be more successful.
Just as a business needs to determine its purpose and what it hopes to achieve, you might do
the samewhat do you ultimately hope to achieve in life? (This could be something in the
economic or non-economic realm.) For example, perhaps you wish to be a surgeon, but right
now you are still working on an undergraduate degree. You have a long-term goal, but there are
many intermediate steps involved which will require obtaining significant resourceswhat
alternatives exist regarding those resources, what is the best alternative, and do you have any
contingency plans in case things do not work out as planned? One of those early intermediate
steps involves getting your undergraduate degree, but in order to do that you have even more
immediate steps that must be accomplishedfor example, completing this course. In order to
do that, you will need to plan out your timegiven the fact that you only have seven days a
week, 24 hours a day. As a result, there may be things you need to do today, in order to
complete what must be done this week, in order to complete this course and other courses
successfully, so that you can get your degree and continue to move through each subsequent
step until you become a surgeon. Since today is important to that future and you only have 24
hours, out of all the alternative uses of your time, which ones are most important to move you
on to your long-term objectives and which ones will not make much difference on a long-term
basis if they are not done? Determining the answer to that last question can help you make the
best use of your time now and keep you moving toward what you hope to accomplish in life.
LECTURE OUTLINE
The outline below (the lecture outline) is referenced to the above chapter outline and contains
supplementary material to enhance your discussion of the chapter, but it is organized somewhat
differently. As a result, you have a choice: by using what is in the outline below, (1) you may
present the above chapter outline material in a different sequence, or (2) you may use the
chapter outline references in the outline below to present the lecture outline material in the
same sequence as the chapter outline.
I.
II.
2.
3.
4.
Planning is preparing for tomorrow today; it is the activity that allows managers to
determine what they want and how to get it. They set goals and decide how to
reach them.
Some goals are established independently while others are directly affected by
the planning of others.
Planning is not done in a vacuum. Planning affects many elements and vice
versa.
Planning has limitations placed on it in terms of funds and other available
resources.
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duplicated, or posted to a publicly accessible website, in whole or in part.
A.
Mission Statement
1.
2.
3.
4.
B.
Goals
1.
2.
3.
4.
5.
C.
III.
E.
Plans
1.
D.
The words mission and vision are similar in purpose, meaning, and intent.
Missions let everyone know why an organization exists.
Purposeful ideas in writing constitute a mission statement.
Peter Drucker contends that an organizational mission must answer: What is our
business? And what should it be?
Resources include
information.
people,
money,
facilities,
equipment,
supplies,
and
Strategic Plans
1.
2.
3.
4.
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duplicated, or posted to a publicly accessible website, in whole or in part.
5.
6.
B.
Strategic Goals
1.
C.
2.
3.
A tactical plan is concerned with what the lower-level units within each division
must do, how they must do it, and who will have the responsibilities for the
accomplishment.
Tactics are the means needed to achieve a strategy, to activate it, and to make it
work.
Tactical plans are concerned with shorter time frames and narrower scopes than
are strategic plans; they usually span one year or less and represent short-term
efforts required to reach long-term goals.
Tactical Objectives
1.
E.
Tactical Plans
1.
D.
Operational Plans
1.
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duplicated, or posted to a publicly accessible website, in whole or in part.
F.
2.
3.
4.
5.
The results of an organizations plans and planning process should provide for a
unified framework for the accomplishment of the organizations purpose, i.e., the
mission or the vision.
The plans of the three management levels of the organization (top, middle, and
bottom) should result in a hierarchy of plans; the plans for each level should fit
into each other. In short, all plans require coordination.
If a manager develops a set of plans that are not in line with the above
managerial levels plans, conflicts will result.
All managers engage in planning their activities and the activities of others.
Managers all plan basically the same way, but the kinds of plans they develop
and the amount of time they spend on planning are different.
a. Top-level managers are concerned with longer time periods and with plans
for larger organizational units. Their planning includes developing the
mission for the organization, the organizational objective, and major policy
areas.
b. Middle-level managers planning responsibilities center on translating broad
objectives of top-level management into more specific goals for the work
unit.
c. First-level managers are involved in scheduling employees, deciding what
work will be done, and developing structures to reach these goals.
G. Contingency Plans
1.
IV.
Contingency plans provide a Plan Bi.e., possible action in case the original
plan cannot be carried out.
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duplicated, or posted to a publicly accessible website, in whole or in part.
B.
2.
3.
C.
D.
2.
3.
Each alternative needs to be evaluated to determine which one best achieves the
objective.
The manager should construct a list of advantages (benefits) and disadvantages
(costs) of each alternative.
In addition to financial factors, consideration should be given to the effects each
alternative is likely to have on organizational members, the organization unit, and
others outside the area of operations.
2.
F.
E.
Once the objectives are established, the manager needs to evaluate the present
situation and analyze the organizations environment both internally and
externally. The internal environment includes:
a. Capital availability
b. Company policies, procedures, and rules
c. Personnel resources
d. Managerial attitudes
e. Facilities
In the external environment, the manager might want to consider:
a. Economic factors
b. Technology
c. Labor supply
d. Sources of materials
e. Government controls
Managers do not operate in a vacuum, even though their planning may be
concerned with only their individual units operations.
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duplicated, or posted to a publicly accessible website, in whole or in part.
2.
Once the plan is implemented, the manager must monitor the progress that is
being made, evaluate the results, and make any modifications necessary.
The environment is constantly changing, so plans may have to be modified.
B.
VI.
BARRIERS TO PLANNING
Barriers restrictively inhibit successful planning. In order for plans to be effective and
to yield the desired results, a step in the right direction is to identify the potential
barriers to successful planning and work to overcome them.
Inability to Plan
1.
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duplicated, or posted to a publicly accessible website, in whole or in part.
the idea of planning as a process and do not know how to go about it.
B.
C.
Inferior Information
1.
D.
Focusing on the present at the expense of the futurefailure to consider the long
term because of emphasis on short-term problems will lead to trouble
coordinating plans and getting ready for the future.
F.
E.
The development of plans is hard work, and it is much easier for a manager to
claim that there is no time to work through the required planning process.
Another possible reason for lack of commitment can be fear of failure. So,
managers may choose to do little or nothing.
Managers can find themselves concentrating on the things and events within
their power to control while failing to consider outside factors.
Managers show a decided preference for the known and an aversion to the
unknown.
AND
STRATEGIC
MANAGEMENT
4.
The element of scope refers to the magnitude of choices that managers have to
maintain within their environment.
Resource deployment is focused upon the aims for allocating resources.
A distinctive competitive advantage refers to the unique position or upper hand
that a business possesses in relationship to its immediate and industrys
competition.
The total sum of all working components or forces is greater than those individual
parts separately added together. That is, when two or more forces interact, the
result is a synergistic total. The total is greater than the sum of the individual
parts. (Example: one plus one equals three.)
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duplicated, or posted to a publicly accessible website, in whole or in part.
B.
C.
D.
Levels of Strategy
1.
2.
3.
3.
B.
The primary step is to evaluate the status and effectiveness of the mission,
objectives, and strategies.
Reassessing the mission is important so as not to become mired in an
inappropriate or misdirected mission. Resighting the corporate aims is a must for
focused managers, especially when changes are needed.
Situation Analysis (SWOT) involves analysis of internal strengths and
weaknesses as well as external opportunities and threats.
After evaluating the mission statement, the internal and external environments
must be closely scrutinized.
A situation analysisa search for strengths, weaknesses, opportunities, and
threats (SWOT)must be directed at both internal and external elements or
forces impacting upon the business.
C.
Sources of Information
D.
E.
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duplicated, or posted to a publicly accessible website, in whole or in part.
1.
2.
F.
Formulating Strategies
1.
2.
G. Implementing Strategies
1.
2.
3.
4.
Leadership
Organizational Structure
Human Resources
Information and Control Systems
Strategy must now be put into motion. The talking stops and the action starts.
Getting from thought to action is a form of activating strategies.
H.
IX.
2.
Growth Strategy
a. This strategy is adopted by an organization that wants to create high levels
of growth in one or more of its areas of operations or business units.
b. An example of a company which aggressively pursues this type of strategy
is McDonalds.
Integration Strategy
a. A vertical integration strategy involves gaining ownership of resources,
suppliers, or distribution systems that relate to a companys business.
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duplicated, or posted to a publicly accessible website, in whole or in part.
b.
3.
4.
5.
B.
Portfolio Strategy
1.
2.
X.
Adaptive Strategies
1.
2.
B.
Competitive Strategies
1.
2.
XI.
A.
Marketing Strategy
1.
2.
B.
Production Strategy
1. This strategy focuses upon the manufacturing of goods or the provision of
services. This includes any combination of goods and services.
2. Strategy decisions for production include plant location, inventory, processes,
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duplicated, or posted to a publicly accessible website, in whole or in part.
D.
Financial Strategy
1.
2.
E.
Since people are the most important asset, this strategy is considered by many
to be of key importance, if not the most important.
The dynamic interactions of personnel within an organization must have priority
for consideration of strategy. People will always remain primary.
2.
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duplicated, or posted to a publicly accessible website, in whole or in part.
3.
What are the purposes of strategic, tactical, operational, and contingency planning?
In what situation would an organization use each?
The purpose of a strategic plan is to help the organization look ahead over the next
two, three, four, five, or even more years in an attempt to prepare the organization for
operational success during these years.
The purpose of tactical plans is to help units achieve the strategic plans. They are
implementation plans developed by middle management.
The purpose of operational plans is to help accomplish management responsibilities.
The purpose of contingency plans is to provide alternative goals and/or courses of
action should circumstances change so as to make the original plan unusable.
Strategic plans would be used to determine the foundation for all other planning effort.
They set the major direction of the company. In turn, tactical plans are then
developed to assist in achieving the strategic plans. Operational plans would be
developed by a manager to accomplish his or her job. Contingency plans would be
developed to recognize and prepare for emergencies and other unexpected events.
4.
5.
Inability to plan
Lack of commitment to the planning process
Inferior information
Lack of focus on the long term
Overreliance on the planning department
Overemphasis on controllable variables
The various barriers to effective planning are not isolated and/or mutually exclusive.
Each is a limited factor to successful management plans.
Each planning barrier provides a potential blockage for proper planning in the
following manner:
a.
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duplicated, or posted to a publicly accessible website, in whole or in part.
b.
c.
d.
e.
f.
6.
8.
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duplicated, or posted to a publicly accessible website, in whole or in part.
These thought-provoking questions are provided by the authors for each chapter as primers for
student discussion. This method of questioning ensures that the students have read the
assigned materials or content. These questions are presented to generate thinking and
discussion. They can be used as supplemental homework assignments and/or class
discussions that center on specific critical thinking issues and applications.
It is important that students are able to respond from their experiences and through their
perceptions as well as incorporate the specific course content into their reasoning, explanations,
descriptions, and individualized contributions. Most of these questions cannot be answered in a
right/wrong fashion.
Instead, student responses and/or group discussions should be
encouraged by the instructor to bring out individualized critical thinking as opposed to absolute
correct answers
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duplicated, or posted to a publicly accessible website, in whole or in part.
A corporate blog is published and used by an organization to reach its organizational goals. The
advantage of blogs is that posts and comments are easy to reach and follow due to centralized
hosting and generally structured conversation threads.
1. Nuts about Southwest is a leading corporate blog where Southwest Airlines employees
share their stories and communicate directly with customers. The blog includes videos, pictures,
podcasts, and other social media tools. Customers and employees are encouraged to comment.
Read the Buzz Binn interview with Southwests Brian Lusk. How did customer comments
on the blog help Southwest change strategic direction on assigned seating and
advanced scheduling?
Visit the blog and read About. Why is the blog moderated? What are the guidelines for
posting?
2. Many corporations resist starting a blog on their own websites because someone might say
something negative about the company or brand. Moderation of the blog posts by the company
is acceptable because it cuts down on inflammatory, offensive, derogatory, or obscene
comments. But, what if the company has a blog and deliberately withholds comments that do
not qualify as inflammatory, offensive, derogatory, or obscene?
Why would a company withhold comments?
Do you think a company withholding comments will be seen as dishonest? Explain.
3. Intel has social media guidelines published online, including moderation guidelines. Read
Intel Social Media Guidelines.
Whats included as social media?
Why should negative content not be moderated?
When should negative content be moderated?
Prepare a list of Dos and Donts for employees using social media.
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duplicated, or posted to a publicly accessible website, in whole or in part.
In searching for the answers to Hallmarks lagging performance, observers identified the
following situations:
Hallmarks cards and merchandise look dated next to hipper upstarts such as Chicagos
Recycled Paper Greetings.
The greeting card business is viewed by Hallmark management as a mature industry with
little room for growth. As a result, the company plunged into TV production with a $395 million
purchase of RHI Entertainment, best known for Hallmarks Hall of Fame productions. Next came
an $80 million investment in Flextech, a European satellite-TV company. Hallmarks
management thought synergy would be developed from both decisions.
Hallmark faces a changing marketplace that now favors mass retailers over the 9,000
independent specialty shops it relies on to sell greeting cards. At one time, these specialty card
shops accounted for 65 percent of card sales. Now these same independent shops have less
than a third of the sales, as discounters, supermarkets, and drugstores dominate the market.
Source: Susan Chandler, Can Hallmark Get Well Soon?, Business Week (19 June 1995), pp.
6263.
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duplicated, or posted to a publicly accessible website, in whole or in part.
Questions
1.
2.
3.
The video mentions that the firm uses SWOT in developing strategy. In considering the
firms marketing strategy, list an example for each element of SWOT.
In view of the firms product line, what would you suggest that Recycline should do in
regards to contingency planning?
What might someday cause a need to shift to an adaptive strategy?
The student answers to these questions will vary greatly. Similar to the critical thinking
questions provided throughout the text, these questions allow students the opportunity to think
in a broad, creative sense with many variables or choices for response. It is important that the
instructor encourage the students to back up or support their answers with specific subject
content from the text as well as provide a rational/logical approach to their comments.
TEAM ACTIVITY
Change is not only constant, but it seems to be accelerating more rapidly today than 20 years
ago, and the rate of change at that time was faster than 50 years agoand so on. The
changes involve technology, markets, the global economy, politics, values and lifestyles, war
and peace, etc.and many of the changes would have been difficult to foresee by even those
who are the best educated and most well informed. As a result, debate the following topic:
Organizations should disregard long-term strategic planning and instead try to prepare for
changes anticipated in the near future.
BIZ FLIX VIDEO CASE
Video Case: Played (I)
Video Case Synopsis
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duplicated, or posted to a publicly accessible website, in whole or in part.
Ray Burns (Mick Rossi) does prison time for a crime he did not commit. After his release, he
focuses on getting even with his enemies. This fast-moving film peers deeply into Londons
criminal world, which includes some crooked London police, especially Detective Brice (Vinnie
Jones). The films unusual ending reviews all major parts of the plot.
This BizFlix video case starts with a nighttime shot of a house on Edenville Street. Ray
says, "OK, what we got guys? Nathan. One, two, three, four moves, okay?" They begin after
Ray tells Terry (Trevor Nugent) and Nikki (Meredith Ostrom) that they have the robbery job.
These scenes end as Ray and Terry leave with the sound of the alarm.
Video Case Discussion Questions and Suggested Answers
Based on this film clip, where are these people in the basic planning process?
As the scene unfolds, it becomes clear that the objective (to steal something) has already been
set, so Step 1 is complete. The team members are analyzing and evaluating the environment,
identifying alternatives, evaluating alternatives, and selecting the best solutions. Thus, they
could be said to be performing steps 2 through 5 simultaneously. The clip also briefly cuts to
Step 6, in which theyre implementing the plan.
This group of thieves is planning a heist. What type of plan are they creating? Explain your
answer.
The group is planning a single heist down to the smallest detail of what each team member will
do, what resources they will need to use, and when each step in the sequence of events will
happen. This is an example of a tactical plan. They are not making plans for an ongoing
operation, nor do we know if this one heist is part of a larger strategy.
Synergy results from combining organizational resources in a way that gets more than the sum
of individual resources. Assess the synergy that occurred in these scenes. Did Ray and the
others combine in a way to have the most positive effect? Why or why not?
Ray and Terry had worked together on other operations. They knew each other well enough to
predict what each could do. Nathan was the weak link in their strategic chain. His inattention to
where he placed his gun led to both his death and the operations partial failure.
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duplicated, or posted to a publicly accessible website, in whole or in part.