1. LESSON 2 GENERAL FRAMEWORK FOR PLANNING
Prepared by: Prof Ayza M Valdez

2. STRATEGIC PLANNING
A firms overall master plan that shapes its destiny

3. TACTICAL PLANNING
Planning that translates a firms strategic plans into specific goals by organizational unit

5. OPERATIONAL PLANNING
Planning that requires specific procedures and actions at lower levels in an organization

7. A FRAMEOWORK FOR PLANNING
1. Define the present situation
2. Establish goals and objectives
3.Analyze environment
4. Develop action plans to reach goals and objectives
5. Develop Budgets
6. Implement the plans
7. Control the plans

8. Define the Present Situation
Measure the success and examine internal capabilities and external threats

9. Establish Goals and Objectives
Establish goals that can continue to focus on what the business can do best

10. Analyze the Environment to Forecast Aids and Barriers to Goals and Objectives
Predict which internal and external factors will foster or hinder attainment of desired goals

11. Develop Action Plans to Reach Goals and Objectives
An action plan consists of the specific steps necessary to achieve a goal or objective

12. Develop Budgets
Among the expenses would be larger advertising and promotion budgets

13. Implement Plans
If the plans developed in the previous five steps are to benefit the firm, they must be put to use.

14. Control the Plans
Make contingency plan as an alternative plan to be used if the original plan cannot be implemented or a crisis develops

15. THE NATURE OF BUSINESS STRATEGY

16. STRATEGY
The organization’s plan, or comprehensive program, for achieving its vision, mission, and goals in its environment

17. Strategy Involves more than Operational Effectiveness
Strategy Rests on Unique Activities
A Sustainable Strategic position requires Trade-Offs
Fit Drives both Competitive Advantage and Sustainability

18. THE DEVELOPMENT OF BUSINESS STRATEGY

19. VISSION
An idealized picture of the future of an organization

20. MISSION
The firms purpose and where it fits into the world

22. SWOT ANALYSIS
A method of considering the strengths, weaknesses, opportunities, and threats in a given situation

23. CONDUCTING THE ANALYSIS

24. S-TRENGHT
What are the good points about a particular alternative? Use your judgment and intuition.

25. W-EAKNESSES
Consider the risk of pursuing a particular courses of action, such as getting into a business you do not understand.

26. O-PPORTUNITIES
Think of the opportunities that welcome you if you choose a promising alternative. Use your imagination and visualize the opportunities

27. THREATS
Every alternative has its own downside, so it is important to think ahead to allow for contingency planning. Ask people who have tried in the past what you are attempting now.

28. STRATEGY LEVELS FOR DIVERSIFIED AND SINGLE BUSINESS FIRMS

29. Diversified Business Single-business firms
Corporate- Level Strategy
What direction do we pursue for the total enterprise?
What business should we enter?
Corporate Level Strategy
Which business should we be in?
How do we compete within the market we have chosen?
Business Level Strategy
How do we compete within each other of the businesses we have chosen?
Functional Level Strategy
How can each function best support each of our business?
Functional Level Strategy
How can each function best support each of our business?

30. CORPORATE LEVEL STRATEGY
Strategic alliances
Diversification of goods and services
Sticking to core competencies

31. BUSINESS LEVEL STRATEGY
Product Differentiation
Focus – organization concentrates on a specific regional or buyer market.
Cost Leadership

32. FUNCTIONAL LEVEL STRATEGY
Find and retain the best people
High Speed

33. OPERATING PLANS, POLICIES, PROCEDURES AND RULES

34. OPERATING PLANS
The means through which strategic plans alter the destiny of the firm.

35. POLICIES
General guidelines to follow in making decisions and taking action

36. PROCEDURES
A customary method for handling activity. It guides action rather than thinking

37. RULE
A specific course of action or conduct that must be followed. It is a simplest type of plan

38. MANAGEMENT BY OBJECTIVES: A SYSTEM OF PLANNING AND REVIEW

39. MANAGEMENT BY OBJECTIVES (MBO)
A systematic application of goal setting and planning to help individuals and firms be more productive

40. MBO STEPS Establishing Organizational goals
Establishing unit objectives
Reviewing group members proposal

41. 4. Negotiating or Agreeing 5
4. Negotiating or Agreeing 5. Creating action plans to achieve objectives 6. Reviewing performance

42. GROUP ASSIGNMENT:
Find three examples of business strategy by searching the internet. Choose several companies of interest to you and search for online news articles about their strategies posted within the last sixty days.
Examples would include strategies for increasing sales, introducing a new product or combating the negative impact of a scandal or controversy.