1. The Manager as a Planner and Strategist
Chapter 8
The Manager as a Planner and Strategist

2. Planning and Strategy Planning Strategy
Identifying and selecting appropriate goals and courses of action
Strategy
The cluster of decisions and actions that managers take to help reach those goals
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3. Three Steps in Planning
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4. The Planning Process To perform the planning task, managers:
Establish where an organization is at the present time
Determine its desired future state
Decide how to move it forward to reach that future state
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5. Why Planning is Important
Gives a sense of direction and purpose
Encourages managers to participate in decision making
Helps coordinate managers of the different functions and divisions
Can be used to control managers
Provides unity and continuity
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6. Levels and Types of Planning
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7. Types of Plans Standing Plans Single-Use Plans
Use in programmed decision situations
Single-Use Plans
Developed for a one-time, non-programmed issue
Scenario (Contingency) Planning
Generating multiple forecasts of future conditions followed by an analysis of how to effectively respond to those conditions
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8. Mission Statements An organization’s overriding purpose
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9. Determining the Organization’s Mission and Goals
Defining the Business
Who are our customers?
What customer needs are being satisfied?
How are we satisfying customer needs
Establishing Major Goals
Provides the organization with a sense of direction
Encourages higher levels of performance
Goals must be challenging but realistic with a definite period in which they are to be achieved
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10. Planning and Strategy Formulation
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11. The Five Forces
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12. 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
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13. Business-Level Strategies
Low-Cost
Differentiation
“Stuck in the Middle”
Focused Low-Cost
Focused Differentiation
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14. Corporate-Level Strategies
Concentration in Single Business
Developing new kinds of products or expanding its locations
Appropriate when managers see the need to reduce the size to increase performance
Vertical integration
A company expands its business operations either:
Backward into a new industry that produces inputs or
Forward into a new industry that uses, distributes, or sells the company’s products
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15. Stages in a Vertical Value Chain
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16. Corporate-Level Strategies
Diversification
Expanding a company’s operations into a new industry
Related Diversification
Entering a new industry and establishing a new business division that is linked to a company’s existing divisions
Synergy
When the value created by two divisions cooperating is greater than the value created independently
Unrelated Diversification
Establishing divisions or buying companies in new industries not linked to a company’s existing divisions
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17. Corporate-Level Strategies
International Expansion
To what extent do we customize products and marketing for different national conditions?
Global strategy
Undertaking very little customization to suit the specific needs of customers in different countries.
Multi-domestic strategy
Customizing products and marketing strategies to specific national conditions
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18. International Expansion
Exporting
Importing
Strategic alliance
Joint venture
Licensing
Franchising
Wholly owned subsidiary
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19. Functional-Level Strategies
A plan that indicates how a function intends to achieve its goals
Seeks to have each department add value to a good or service
Value of a good or service is added through:
Lowering the costs of providing the products
Adding new value by differentiating
Must fit with business level strategies
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20. Planning and Implementing Strategy
Allocate implementation responsibility to the appropriate individuals or groups
Draft detailed action plans for implementation
Establish a timetable for implementation
Allocate appropriate resources
Hold specific groups or individuals responsible for the attainment of goals
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