Lecture 11

Part Two: The Business Of Managing Managing the Business Of Managing Organizing the Business Enterprise Managing Human Resources & Labor Relations Motivating, Satisfying, and Leading Employees

Who Are Managers? All Organizations Require Effective Managers –Big organization or small All Managers Perform The Same Basic Functions –Plan –Organize –Direct –Control

Planning- Types of Strategy Goal: objective that a business hopes to achieve Blue print to achieve the goal is a strategy Broad plans for implementing the decisions made for achieving the goals

Planning- Types of Strategy Corporate –Overall attitude towards growth and the way the business will be managed Business/Competitive –Level of business unit focuses on improving competitive position Functional –Manager is specific areas decide how best to achieve goals by being productive

Reasons For Goals Direction/Guidance –Less chances of error Resource Allocation –More resources to new projects or growing projects Define Corporate Culture Assess Performance

Kinds Of Goals Mission Statement – Why Organization Exists & How It Will Operate Long-Term = 5 Years + Intermediate = Years Short-Term = Less Than 1 Year

Kinds Of Goals Mission Statement – Why Organization Exists & How It Will Operate Example: Unilever –We help people around the world meet everyday needs for nutrition, hygiene and wellbeing, with brands that help people look good, feel good and get more out of life.

Strategy Formulation

Formulating Strategy Define & Set Organization’s Goals Strategic Goals –Long term –Derived Strengths Weaknesses Opportunities Threats Environmental Analysis Organizational Analysis Matching Organization With Environment –Take risk or behaves conservatively

Formulating Strategy Environmental Analysis Organizational Analysis Matching Organization With Environment –Take risk or behaves conservatively

Analysis Environmental Analysis Organizational Analysis

Planning Levels Operational Tactical Strategic

Strategic plan Decisions about resource allocation, company priorities and steps to meet strategic goals Created by top management Tactical plan Short range Implements specific aspects of companies strategic plan Involves upper and middle management Operational plans Developed by middle and lower managers Daily, weekly, monthly targets

Other Forms or Levels Of Planning Contingency- Changes in Business/Environment –Identify aspects of environment that might entail changes in the strategy Crisis- Emergencies –Require immediate response