1. The Manager as a Planner and Strategist chapter eight Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Learning Objectives 1. Identify the three main steps of the planning process and the relationship between planning and strategy. 2. Describe some techniques managers can use to improve the planning process so they can better predict the future and mobilize organizational resources to meet future contingencies. 8-2

3. Learning Objectives (cont.) 3. Differentiate between the main types of business- level strategy and explain how they give an organization a competitive advantage lead to superior performance. 4. Differentiate between the main types of corporate- level strategies and explain how they are used to strengthen a company’s business-level strategy and competitive advantage 5. Describe the vital role managers play in implementing strategies to achieve an organization’s mission and goals 8-3

4. Planning and Strategy  Strategy  A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals. 8-4

5. Three Steps in Planning 8-5 Figure 8.1

6. Levels of Planning at General Electric 8-6 Figure 8.2

7. Levels and Types of Planning 8-7 Figure 8.3

8. Time Horizons of Plans  Time Horizon  Period of time over which they are intended to apply or endure.  Long-term plans are usually 5 years or more.  Intermediate-term plans are 1 to 5 years.  Short-term plans are less than 1 year. 8-8

9. Scenario Planning  Scenario Planning (Contingency Planning)  The generation of multiple forecasts of future conditions followed by an analysis of how to effectively respond to those conditions. 8-9

10. Three Mission Statements 8-10 Figure 8.4

11. Formulating Strategy  SWOT Analysis  A planning exercise in which managers identify organizational strengths (S) and weaknesses (W) and environmental opportunities (O) and threats (T). 8-11

12. Questions for SWOT Analysis 8-12

13. Planning and Strategy Formulation 8-13 Figure 8.5

14. The Five Forces  Hypercompetition  industries that are characterized by permanent, ongoing, intense, competition brought about by advancing technology or changing customer tastes and fads and fashions 8-14

15. Four Ways to Expand Internationally 8-15 Figure 8.7