Welcome to AB140 Planning Lara Schulz

Unit 2 Review The Business is an Open System It receives inputs of resources from its environment It processes this input It produces output in the form of goods or services.

Unit 2 Review (Continued) In the process, the business is changed by its environment and in turn, the environment is altered by the business. External Environment – Made up of entities outside of the business. Internal Environment – Made up of the business itself. Macroenvironment – That part of the External environment specific to a particular business.

Any questions ?

Unit 3 Objectives Identify the basic steps in any planning process Explain the relationship between strategic planning, tactical planning, and operational planning Interpret the elements of a basic SWOT analysis

What is planning?

What is planning A systematic process of making decisions Setting goals Determining activities A purposeful effort directed and controlled by managers 6-step process

Bateman/Snell: Management

Step 1: Analyze the Situation Situational analysis: a process planners use, within time and resources constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration Do you move on to the next step?

Step 2: Generate Alternative Goals and Plans SMART Goals -Specific -Measurable -Attainable -Relevant -Time-bound Plans Single-use Standing Contingency Plans

Step 3: Evaluate Goals and Plans Advantages Disadvantages Effects Prioritize Costs

Step 4: Select Goals and Plans Select the most appropriate and feasible alternative Identifies the priorities and trade-offs among the goals and plans

Step 5: Implement the Goals and Plans All managers and employees understand the goals and plans and their roles in the implementation Managers and employees are sufficiently motivated to make it work Correctly linked to other systems and parts of the organization.

Step 6: Monitor and Control Performance Proper monitoring and control is essential for successful implementation Actual performance of the new plans and goals must be measured against standards of expected performance Corrective action must be taken to ensure performance or the measurement criteria must be readjusted

Levels of Planning

Strategic Tactical Operational

Strategic Top-level Long-term goals and strategies End results for long-term survival Growth of company Actions and resource allocation 3-7 years, or longer

Tactical Middle-managers Specific goals for part of organization 1-2 years

Operational Frontline managers Specific process and procedures Routine tasks Less than one year

SWOT Analysis The SWOT Analysis is a useful strategic planning tool. It allows the user to visualize the strengths, weaknesses, opportunities and threats facing the business. Strengths and Weaknesses: Refer to internal resources of the firm; what the firm does especially well and in what areas the firm is weaker. Opportunities and Threats: Refer to those elements in the macroenvironment and the competitive environment that could represent a competitive opportunity or pose a competitive risk for the firm.

SWOT Analysis Illustrated: Strengths:Weaknesses: Opportunities:Threats:

What’s Due This Week!

Reading This week's reading is Chapter 4 of the Bateman and Snell textbook and the Sandwich Blitz case that follows. All reading materials for this course can be found in the Doc Sharing area.

Discussion Boards You are introduced as part of your reading assignment to the business case study, Sandwich Blitz, Inc. which we will continue to consider at various times throughout this course. Refer back to the description of the company and to your textbook reading on “Levels of Planning” which is on pp. 75–77. After completing the readings, in your judgment, what are some considerations that Dalman and Lei must have at each of the three levels (strategic, tactical, and operational) of planning for Sandwich Blitz, Inc? Don’t forget the following: -Post a minimum of three posts per discussion question. One initial response and two replies to their classmates. -Post on a minimum of three different days -Initial post must be completed by Saturday -Initial Post must be 100 words -Be sure to check spelling and grammar -Ensure your responses add value and further the conversation -You cannot post to the boards late

Assignment This week's assignment consists of reading a scenario about Sandwich Blitz, Inc. and writing about what strengths, weaknesses, opportunities, and threats (SWOT) that the business faces if Dalman and Lei commit to a large- scale expansion of their business Click the Guidelines button for detailed instructions The following requirements apply: -Write your assessment in paragraph form, using Microsoft Word. -Your document should be at least one full double-spaced page (full page) in length, using size 12-point Times New Roman type font. -Proper grammar, spelling, punctuation, syntax, etc. -Don’t forget to properly reference any material used -I expect a professional paper Submit your Assignment in the Unit 3 Dropbox for grading, as an attachment Ensure you submit the assignment by Tuesday night at 11:59pm EST

Review Take the review as often as you like Read each question carefully Ensure you hit submit Reviews cannot be made up!!

It’s Q & A Time!!

Good Night! Don’t hesitate to contact me with questions See you next week… -Same time -Same Station !