Introduction to Management AB140 Unit 3 Seminar – Planning

Agenda Unit 3 Work Planning Steps Different Levels of Planning SWOT Analysis Conclusion of Seminar

Reading Assignment – Unit 3 This week's required reading is from Chapter 4 in the Bateman and Snell text The planning process

Unit 3 Objectives During this unit we will: 1.Identify the basic steps in any planning process. 2.Explain the relationship between strategic planning, tactical planning, and operational planning. 3.Interpret the elements of a basic SWOT analysis.

Key Concepts Planning is one of the four primary functions of management. Planning involves a systematic process of making decisions about goals and activities that will be carried out by individuals, groups, and the organization. Successful management depends on an accurate and thorough evaluation of the organization’s environment.

Unit 3 Discussion Post by Saturday! Must be at least 100 words Spelling and grammar count!

Unit 3 Participation Two responses to your classmates. Must be substantial Just saying “I agree” will not receive credit Posts must enhance and advance the discussion Utilize the readings and research Messages need to be on-topic

Unit 3 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.

Unit 3 Review Quiz Complete readings and video before attempting the review May be completed during the Unit only!

Steps in the Planning Process Analyze the Situation Generate Alternative Goals and Plans Evaluate Goals and Plans Select Goals and Plans Implement the Goals and Plans Monitor and Control Performance

The Planning Process Step 1. Analyze the Situation Situational Analysis: Step 1: Within the constraints of time and resources, gather, interpret and summarize all relevant information of the issue or problem at hand. Step 2: Examine past events, current conditions, and try to forecast future trends. Step 3: Within the context of the business as an open system, apply the analysis to the unit in question. Step 4: Examine the issue or problem within the context of the different environmental situations (External and Internal). Step 5: Produce an outcome that identifies and examines the assumptions, problems, and issues.

The Planning Process Step 2. Generate Alternative Goals and Plans Goals: The end the result the manager seeks. These must be: -Specific -Measurable -Attainable -Relevant -Time-bound SMART

The Planning Process Step 2. Generate Alternative Goals and Plans (Continued) Plans: Specific actions or ways the manager will use to achieve the goals. These may be: -Single-use Plans -Standing Plans -Contingency Plans

Step 3. Evaluate Goals and Plans Advantages Disadvantages Priorities

Step 4. Select Goals and Plans What might be a good example of a management goal? Remember we want goals to be:  Specific  Measurable  Attainable  Relevant  Time-bound

The Planning Process Step 5. Implement the Goals and Plans Proper implementation is key to success. Good implementations assure that: -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.

The Planning Process 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. You may have noticed by now that the steps in the Planning Process look very much like POLC!

Levels of Planning and Goals Strategic Goals: Major long-term targets or results relating to the firm’s long-term survival, value, and growth. These are set by the firm’s highest level of management. Strategic Plans: Action plans to support the strategic goals. These usually cover the entire firm and are implemented by top management.

Levels of Planning and Goals Continued Tactical Planning: Translates the broad strategic goals and plans into specific goals and plans usually for a specific area of the firm such as department or division. These often involve middle level management and are not as long- range as the strategic goals and plans.

Levels of Planning and Goals Continued Operational Planning: Shorter-range plans that address specific procedures and processes to ensure success of the tactical goals and plans and in turn, success of the strategic goals and plans. This usually occurs at lower levels of the organization and often involves first-level managers (supervisors).

INTEGRATING THE PLANS Strategic, tactical and operational plans must align with one another The plans must be: Consistent Mutually supportive Focused on a common purpose and direction

Questions?

Scenario: Your boss has just informed you that he wants you to create an emergency evacuation plan for the coffee shop that you and 5 shift workers staff. You work 8 hour shifts – two at a time from 7am-3pm and 3pm -11pm. You sell coffee, pastry in a refrigerated dairy case as well as mugs, candy and some miscellaneous gift items. You have 2 industrial coffee pots as well as an on-site industrial coffee grinder and roaster. There is a front door and a back door. There are two extinguishers in the back room and the security gate at the front entrance comes down automatically if the sprinkler system goes on.

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.

COMPONENTS OF THE SWOT Strengths and Weaknesses: Refer to internal resources of the firm; what the firm does especially well and in what areas the firm is weaker.

COMPONENTS OF THE SWOT (cont) Opportunities and Threats: Refer to those elements in the external environment that could represent a competitive opportunity or pose a competitive risk for the firm.

SWOT Analysis Illustrated: InternalStrengths:Weaknesses: ExternalOpportunities:Threats:

CORPORATE STRATEGY Concentration Vertical Integration Concentric Diversification Conglomerate Diversification

CONCENTRATION STRATEGY Focuses on a single business competing in a single industry

VERTICAL INTEGRATION STRATEGY Expands the domain of the organization into supply channels or to distributors

CONCENTRIC DIVERSIFICATON Moves into new businesses related to the organization’s core business

CONGLOMERATE DIVERSIFICATION Involves expansion into unrelated businesses

QUESTIONS?

See you next week! After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

Thank You for Joining Me This Evening!