1. LEVELS OF STRATEGY zCORPORATE zBUSINESS (SBU) zFUNCTIONAL (OPERATIONAL)

2. GENERIC STRATEGIES Cost Leadership Differentiation Focus Cost Focus COMPETITIVE ADVANTAGE Low Cost Differentiation Broad Target Narrow Target MARKET SCOPE Michael E. Porter, Competitive Advantage

3. CORPORATE STRATEGY zOVERALL, GRAND STRATEGY zPORTFOLIO STRATEGY yBCG MATRIX yGE BUSINESS SCREEN

6. BENCHMARKING zCOMPARE TO “BEST IN CLASS” zBASED ON KEY SUCCESS FACTORS

7. TYPES OF PLANS zSTRATEGIC zOPERATIONAL zTACTICAL zGOALS/OBJECTIVES zPOLICY zPROCEDURE zRULE

8. GOAL SETTING

9. SINGLE, SPECIFIC TOPIC zNot a vague abstraction yWe will maximize profits. yWe will be the best. yBetter: We will increase profits by 10%.

10. FOCUS ON RESULT, Not on Activity zActivity will not result in goal yExample: Goal is to increase advertising expenditure by 15% in 1996. zGoal is result of activity yBetter: Advertising will be increased by 15% in 1996 in order to increase market share from 8% to 10%.

11. MEASURE WHEN FEASIBLE zMust at least be verifiable

12. HAVE A DEADLINE

13. GOALS zSETTING GOALS zNETWORK OF GOALS zMULTIPLE GOALS zSET PRIORITIES

14. GOALS zSTATED GOALS zREAL GOALS

15. MBO zA PLANNING TOOL zMOTIVATIONAL TOOL zCONTROL TOOL

16. POLICY zGUIDELINE TO AUTHORITY zUSE TO DELEGATE AUTHORITY

17. PROCEDURE zGUIDE TO ACTION zSERIES OF STEPS zNO AUTHORITY zUSUALLY A STANDING PLAN

18. TYPES OF BUDGETS zCASH zEXPENSE zSALES zCAPITAL EXPENDITURE

19. BASE OF BUDGET zINCREMENTAL zZERO BASE

20. FORECASTING zQUANTITATAIVE METHODS yTIME SERIES yREGRESSION... zQUALITATIVE METHODS yJURY OF OPINION ySALES FORCE COMPOSITION yCUSTOMER

21. OTHER TYPES OF PLANS zSINGLE USE zSTANDING zCONTINGENCY (ALTERNATIVE) zFLEXIBLE zDIRECTIONAL zSPECIFIC

22. SCHEDULING zGANTT CHART zLOAD CHART zPERT

23. OTHER TOOLS zBREAK EVEN ANALYSIS zLINEAR PROGRAMMING zQUEUING THEORY zPROBABILITY THEORY zSIMULATION

24. LENGTH OF PLAN zSHORT TERM yUSUALLY ONE YEAR OR LESS zLONG TERM yUSUALLY FIVE YEARS yCOMMITMENT CONCEPT ySUNK COSTS

25. IMPLEMENTATION PLANS zWHO zWHAT zWHEN zWHERE zHOW zSUPPLIERS zCOORDINATION zWHAT TO MEASURE/CONTROL

26. “PLAN OF ACTION” OUTLINE zState Goal zWay(s) to accomplish it yAccomplishment interfere with another? zDate(s) to be finished zProblems I may encounter/create? zSuppliers, sources of help zCoordinate with??? zThings to monitor, measure

27. IMPLEMENT THE PLAN zACTION PLANS zTIME MANAGEMENT yIMPORTANT TASKS yURGENT TASKS

28. LEVEL IN ORGANIZATION zHIGHER LEVEL IN ORGANIZATION ySTRATEGIC yLONGER TERM yMORE DIRECTIONAL zLOWER LEVEL IN ORGANIZATION yOPERATIONAL, TACTICAL ySHORTER TERM yMORE SPECIFIC

29. ENVIRONMENTAL UNCERTAINTY zMORE UNCERTAIN yDIRECTIONAL ySHORTER TERM zMORE CERTAIN ySPECIFIC yLONGER TERM

30. COMPANY LIFE CYCLE zFORMATION yMORE DIRECTIONAL zGROWTH ySHORTER TERM yMORE SPECIFIC zMATURITY ySPECIFIC yLONGER TERM zDECLINE ySHORTER TERM yMORE DIRECTIONAL