planning and strategic management by dhara

8/3/2019 Planning and Strategic Management by Dhara

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PLANNING AND STRATEGIC

MANAGEMENTPresenters:

Dhara G



PLANNING

Definition

A particular type of decision making that addresses

the specific future that managers desire for their

organizations.



IMPORTANCE OF GOALS IN PLANNING

Provideus

direction

• One knows what really to achieve.

• Enhance motivation as there is a finite target.

Focusour

efforts

•

Effective utilization of our resources esp. scareresources.

Guide ourplans and

decisions

• Laying out short term and long term plans becomeclear.

Evaluationof

Ourprogress

• As goals are measurable and have specific deadlinesso individuals and managers can evaluate thereprogress.



HIERARCHY OF ORGANIZATION PLANS

OPERATIONAL PLANS

Plans that contain details for carrying out , orimplementing ,those strategic plans in day-to-

day activities.CREATED BY: middle and first-line managers

STRATEGIC PLANS

Plans designed to meet an organization'sbroad goals.

CREATED BY: top and middle managers.

MISSION STATEMENT

Broad organizational goal, based on planningpremises, which justifies and organization's

existence.

CREATED BY: founder, board of directors, ortop managers



STRATEGIC VS. OPERATIONAL PLANS

Time horizons: Strategic plans tend to lookahead several years or even decades. Whilefor operational plans a year is often therelevant time period

Scope: Strategic plans affect a wide rangeof organizational activities, whereasoperational plans have a narrow scope.

Strategic plans have higher no. of relationships involved than operational plans

Degree of detail: Strategic plans are moregeneric and simplistic.

Operational plans involve a relatively finerdetails than strategic plans



STRATEGY AND RELATED TERMS



STRATEGIC MANAGEMENT APPROACH…

In 1978, Schendel and Hofer created a composite

definition of strategic management

STRATEGYFORMULATION:

Strategy is formulatedbased on the goals.

1.STRATEGIC PLANNINGGOAL SETTING: first andforemost process



STRATEGIC CONTROL:

Giving managers the feedback of thereprogress.

-ve feedback means new cycle of strategicplanning.

2. STRATEGY IMPLEMENTATION

ADMINISTRATION:

The task of achieving pre-determinedgoals

Involves the revision of strategy



LEVELS OF STRATEGY

CORPORATE LEVEL STRATEGY

• Strategy formulated by the top management to overseethe interests and operations of multiline corporations.

• Decisions as to where should the various resources beallocated.

BUSINESS-STRATEGY

• Strategy formulated to meet the goals of a particularbusiness; also called line-of-business strategy

• Decisions relating to the approach and conduct of thebusiness in market

FUNCTIONAL LEVEL STRATEGY

• Strategy formulated by a specific functional area in aneffort to carry out business-unit strategy.

• It completes the hierarchy of strategies.



THE CORPORATE PORTFOLIO APPROACH



B.C.G.



FIVE-FORCES



CASE STUDY



CONCLUSION

planning and strategic management by dhara

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