BUSI 321 GOLDEN CHAPTER 7

PLANNING

Process of deciding what objectives to pursue during a future time period and what to do to achieve those objectives.

BUSI 321 GOLDEN CHAPTER 7

PLANNING HORIZONS Short-Range Plans:

Cover up to one year. Long-Range Plans: Span

at least three to five years; some can extend up to 20 years.

Intermediate Plans: Cover time span between short and long range plans.

BUSI 321 GOLDEN CHAPTER 7

OPERATIONAL VERSUS STRATEGIC

Strategic Planning: Top-level long-range planning. Covers a long period of time and affects much of the organization.

Operations or Tactics Planning: Short-range planning. Mostly done by middle to low level management and concentrates on functional plans (Marketing, Production, Finance, Personnel, etc.).

BUSI 321 GOLDEN CHAPTER 7

MBO!!!!! Management by

Objectives (MBO): Converting organizational objectives into personal objectives.

Policies, Procedures, and Rules!

BUSI 321 GOLDEN CHAPTER 7

STRATEGY

Outlines how management intends to achieve objectives. The means to the end!

Corporate (Grand) Strategies: Addresses what businesses we will be in and how resources will be allocated.

BUSI 321 GOLDEN CHAPTER 7

GRAND STRATEGIES Growth

Concentration, Vertical Integration, Diversification

Stability Defensive

Turnaround, Divestiture, Liquidation

Combination

BUSI 321 GOLDEN CHAPTER 7

STRATEGIC MANAGEMENT

Formulation, proper implementation, and continuous evaluation of strategic plans. Formulation Phase Implementation Phase Evaluation Phase

BUSI 321 GOLDEN CHAPTER 7

FORMULATION PHASE Identify Mission Identify Past and Present

Strategies Diagnose Past and Present

Performance Set Objectives (Long Range versus Short Range) SWOT Analysis! Compare Strategic Alternatives

BUSI 321 GOLDEN CHAPTER 7

SWOT ANALYSIS Strengths

(internal) Weaknesses

(internal) Opportuniti

es (external)

Threats (external)

Hey Man,you don’t know SWOT!

IMPLEMENTING,

EVALUATING, AND

CONTROLLING THE STRATEGY