Planning and Goal Setting By Dr.Raafat Youssef Shehata

Definitions -Strategy: the method used to achieve objectives e.g. we will achieve our objective of increasing profits by growing market share in existing market -Tactics: how resources are deployed in an agreed strategy e.g. we will set up a new telephone call center and target new customers -Goal - A desired future state that the organization attempts to realize -Objectives: are quantified goals

By connecting people, we help fulfill a fundamental human need for social connections and contact. Nokia builds bridges between people – both when they are far apart and face-to-face – and also bridges the gap between people and the information they need

Mission It is the rationale of existence of any organization, its long term strategic direction,values,basic function

Mission It includes (PSVP) -Purpose -Strategy -Value -Policies

“Provide high-quality educational opportunities to students from all segments of the Egyptian society as well as from other countries, and to contribute to Egypt’s cultural & intellectual life.” AUC

Honda “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality at a reasonable price for worldwide customer satisfaction.”

Bill Gates “A PC with windows software on every desk”

Vision It is the future state of the organization (how the company foresees the future)

Mission/ Vision - Here & now - Realistic - Relevant - Continual - Future - Unrealistic - Out of date - Renewed if achieved

Objectives Objective should be SMART S Specific M Measurable A Ambitious R Realistic T Time related

Objectives - Profit and profit maximization - Survival - Market share - ROI, ROCE - EPS - Growth - Quality - Added value

Profitability -Profit = revenue – cost -Malcolm Glazer ”Owner of Manchester united” plans to raise ticket prices by more than 50 %over the period to 2010

Profit maximization

Methods: 1-Supplying those goods that consumers most wish to buy 2-Cost reduction 3-Innovative products

Survival ( Drucker) - This is the basic drive in all businesses -Japanese people accept cuts in their salaries - Survival: To survive provide the market with economic product To survive you have to innovate To survive your business must be profitable To survive you have to predict the market social climate

Growth -It is in the interests of management -Growth may lead to diseconomies of scale -Growth is attractive why ??? =Resolve conflict between stakeholders =Opportunities for promotion =Company power

Market share -Share of the organization versus the total market -There is a positive correlation between market share and profit but to a certain limit after that extra share may only be bought at the expense of profit

ROI – ROCE( Ansoff) Return on investment Return on capital employed EPS Earning per share

Hierarchy of Goals

Coca-Cola / Dasani Coca-Cola’s decision to recall the entire UK supply of its bottled water Dasani was a big setback to its mission to become an established player in this expanding market The Food Standards Agency investigated when samples of the product were found to contain bromate, a by product of the purification process, at higher levels than legally permitted for either bottled or tap water

Coca-Cola / Dasani It also, emerged that the source for Dasani was mains water supplied to its factory in South London Both issues clearly impacted the brand prestige of Coca-Cola and the perceived purity of its products But because Dasani was introduced to the market as a separate brand did not suffer much

Organizational Strategies

Competitive strategies Low-cost supplier Differentiation Niche Pursue large customers Minimize cost Compete on price Seek customers who are low price shoppers Compete on non-price benefits Provide high quality customer service Seek customers who are not low price shoppers Serve a distinct target market not served well by others Provide high quality customer service Seek customers who are not low price shoppers

1. Market Penetration 2. Market Development 3. Product Development 4. Diversification Existing Markets New Markets Existing Products New Products Growth strategies