1. The Manager as a Planner
Developing a SWOT analysis

2. The Planning Process
Planning-identifying and selecting appropriate goals and courses of action for an organization
Strategy-The cluster of decisions that managers take to help a company reach its goals
Mission-a broad declaration of an organization’s purpose that identifies the companies products and customers and distinguishes the organization from the competition

3. Three Steps in Planning
Determine the organization’s mission and goals
Formulating strategy-analyze the current situation and develop strategies to achieve the mission
Implement strategy-allocate resources between groups to ensure the strategy is achieved

4. Levels and types of Planning
Corporate Level Plan-top management’s decisions regarding which industries, and national markets a company intends to compete
Business Level Plan-developing long term goals indicating how a division intends to compete against its rivals in the industry
Functional Level Plan-indicates how a function intends to achieve the goals of a division or business level

5. Time Horizons of Plans Long Term Plans-5 years or more
Intermediate Plans-1-5 years
Short term Plans-less than one year
Corporate and business level plans are long and intermediate
Functional plans are short to intermediate
Most organizations have a rolling planning cycle

6. Types of Plans
Standing Plans-use in programmed decision situations such as policies, rules, or standard operating procedures (sop)
Single use plans-developed for a one time, non programmed issue

7. Why Planning is Important
Planning ascertains where the organization is now and where it will be in the future
Participation-all managers are involved in setting goals
Sense of direction-sets goals and strategies for managers
Coordination-how the system fits within the company
Control- who is responsible for achieving goals

8. Scenario Planning
Scenario Planning (Contingency Planning)-generating multiple forecasts of future conditions followed by an analysis of how to respond to each condition
Effective Plans have
Unity=1 plan
Continuity-ongoing plan
Accuracy-factual information
Flexible-adjust plans as necessary

9. Determine Mission and Goals
Define the business-Who are customers? What needs are being satisfied?
Establish major goals-provides a sense of direction and stretches the organization to higher levels of performance. Goals must be challenging but realistic

10. Formulating Strategy
Managers analyze the current situation to develop strategies for achieving the mission
SWOT analysis- a planning exercise in which managers identify company strengths, weaknesses, and external opportunities and threats

11. Five Forces Model Level of competition Potential for Entry
Power of suppliers
Power of customers
Substitutes

12. Formulating Corporate Level Strategies
Concentration in a single business
Related diversification
Unrelated diversification
International expansion
Global-selling the same product in all countries
Multidomestic-customizing products to specific national conditions

13. Vertical Integration
Vertical Integration-allowing an organization to create value by producing its own inputs or distribution its own products
Backward integration-seeks to reduce its input costs by producing its own inputs
Forward integration-distributes its own outputs to lower distribution costs

14. Business and Function Level strategies
Business-low cost or differentiation
Functional-seeks to have each department add value by lowering costs or adding new value by:
Attaining superior efficiency
Attaining superior quality
Attaining superior innovation
Attaining superior responsiveness to customers

15. Planning and Implementing Strategy
Allocate implementation responsibility to appropriate individuals
Draft detailed action plans
Establish a timetable for implementation
Allocate resources
Hold specific groups responsible for the attainment of goals