06 the Strategic & Operational Planning Process

8/9/2019 06 the Strategic & Operational Planning Process

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PowerPoint Presentation by Charlie CookThe University of West Alabama

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Chapter %

The Strategicand OperationalPlanning Process


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Learning Outcomes

1. Describe how strategic planning differs from operational planning.

2. State the differences among the three strategic levels: corporate,business, and functional.

3. !plain the reason for conducting an industr" and competitive situation

anal"sis.#. !plain the reason for conducting a compan" situation anal"sis.

$. List the parts of an effective written ob%ective.

&. Describe the four grand strategies: growth, stabilit", turnaround andretrenchment, and a combination of these.

'. Describe the three corporate growth strategies: concentration,integration, and diversification.

(. Describe the three business)level adaptive strategies: prospecting,defending, and anal"*ing.

+. State the difference between standing plans and single)use plans.

After st !ying this #hapter' yo sho l! be able to(


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Learning Outcomes cont-d

1/. Define the following key terms :strategic planning corporate growth strategiesoperational planning merger strateg" ac0uisitionstrategic levels business portfolio anal"sis

corporate)level strateg" adaptive strategiesbusiness)level strateg" functional strategiesfunctional)level strateg" standing planssituation anal"sis policiesS O anal"sis procedurebenchmar ing rulesob%ective single)use plansmanagement b" ob%ectives 45O contingenc" plansgrand strateg"


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+!eas on ,anagement at Starbuc s

1. hat are some of Starbuc s-s strategic and operational plans62. hat is Starbuc s-s mission6 hat are its si! guiding principles6

3. hat does five)force competitive anal"sis reveal about the growthpotential of Starbuc s6 7dentif" the compan"-s strengths, wea nesses,opportunities, and threats.

#. hat ob%ectives has Starbuc s established6

$. hat is the corporate grand strateg" and primar" growth strateg" atStarbuc s6 8ame some of the compan"-s failed growth strategies.

&. hat t"pes of adaptive and competitive strategies does Starbuc scurrentl" emplo"6 hich stage in the product life c"cle has coffeereached in the 9.S. mar et6

'. hat t"pe of functional and operational plans does Starbuc s have6


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lanning Dimensions

• lanning – -etermining what yo want to a##omplish an!

!eveloping approa#hes to a#hieving yo rob.e#tives$

• lanning Dimensions:

"/hibit %&


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Strategic and Operational lanning

• Strategic lanning – The pro#ess of !eveloping a mission an! long1

range ob.e#tives an! !etermining in a!van#ehow they will be a##omplishe!$

• Operational lanning – The pro#ess of setting short1range ob.e#tives

an! !etermining in a!van#e how they will bea##omplishe!$

• Strateg" – A plan for p rs ing the mission an! a#hieving

ob.e#tives$


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he Strategic lanning rocess

"/hibit %&2


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Strategic lanning

• ;orporate)Level Strateg" – The plan for managing m ltiple lines of

b sinesses• 5usiness)Level Strateg"

– The plan for managing one line of b siness•


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Strategic and Operational Levels

"/hibit %&)


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7ndustr" and ;ompetitive Situation =nal"sis

• Situation =nal"sis – 5o# ses on those feat res in a #ompany s

environment that most !ire#tly affe#t its optionsan! opport nities$

•


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Starbuc s-s


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arts of a ;ompan" Situation =nal"sis

"/hibit %&%

$ Assessment of the present strategy base!on performan#e$

2$ 8trengths' Weaknesses' 9pport nities'an! Threats :8W9T; analysis$

)$ Assessment of #ompetitive strength an!i!entifi#ation of #ompetitive a!vantage$

*$ Con#l sions #on#erning #ompetitive

position$

%$ -etermination of the strategi# iss es an!problems that nee! to be a!!resse!thro gh the strategi# planning pro#ess$


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S O =nal"sis forStarbuc s ;offee

"/hibit %&6


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;ompetitive Strength =ssessment for Starbuc s ;offee

"/hibit %&


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;ompetitive =dvantage

• ;ore ;ompetenc" – A f n#tional #apability :strength; that the firm

!oes well an! one that #reates a #ompetitivea!vantage for the firm$

• 5enchmar ing – The pro#ess of #omparing an organi


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Setting Ob%ectives

• Ob%ectives – 8tate what is to be a##omplishe! in sing lar'

spe#ifi#' an! meas rable terms with a target!ate$

• >oals – Are general targets to be a##omplishe! that are

translate! into a#tionable ob.e#tives$


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riting ffective Ob%ectives

• 4a! . Douglas-s model for writing effectiveob%ectives:

– : ; the wor! to ' followe! by –

:2; an a#tion verb' – :); a statement of the single' spe#ifi#' an!

meas rable res lt to be a#hieve!' an! – :*; a target !ate$

• o achieve a &? overall return on fourth 0uartersales.


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;riteria hat Ob%ectives Should 4eet

"/hibit %&3


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4anagement b" Ob%ectives 45O

• 4anagement b" Ob%ectives8tep $ 8et in!ivi! al ob.e#tives an! plans$8tep 2$ =ive fee!ba#k an! eval ate performan#e$8tep )$ 7ewar! a##or!ing to performan#e$

• Sources of 45O a#k of top management #ommitment an!

follow1thro gh on ,B9$ –

"mployees negative beliefs abo tmanagement s sin#erity in its efforts to in#l !ethem in the !e#ision1making pro#ess$


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;orporate)Level Strateg"

• >rand Strategies – =rowth – 8tability –

T rnaro n! an!retren#hment

– Combination

• >rowth Strategies – Con#entration – Ba#kwar! an!

forwar! integration – 7elate! an!

nrelate!!iversifi#ation


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;orporate >rand and >rowth Strategies

"/hibit %&4


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ortfolio =nal"sis: 5;> 4atri!

"/hibit %& 0


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he ntrepreneurialStrateg" 4atri!

"/hibit %&

=dapted with permission from Business Horizons #/4a"@Aune , '3@''. Sonfield, 4. ;., and Lussier, B.

8. 1++' . C he ntrepreneurial Strateg" 4atri!. =4odel for 8ew and Ongoing entures.E F1++' b"7ndiana 9niversit" Gelle" School of 5usiness.


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5usiness)Level Strategies

• =daptive Strategies – Prospe#ting

• =ggressivel" offering new products andHor enteringnew mar ets.

– -efen!ing• Sta"ing with the present product line and mar ets,

and maintaining or increasing customers. – Analy


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5usiness)Level =daptive Strategies

"/hibit %& 2


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;ompetitive Strategies

•

Differentiation – Competing on the basis of feat res that

!isting ish one firm s pro! #ts or servi#es fromthose of another$

•

;ost Leadership – The firm with the lowest total overall #osts hasa #ompetitive a!vantage in pri#e1sensitivemarkets$

•


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Strategies for Starbuc s over the roduct Life ;"cle

"/hibit %& )


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"pes of lans

•

Standing lans – Poli#ies' pro#e! res' an! r les !evelope! for

han!ling repetitive sit ations$ – Poli#ies

•

>eneral guidelines to be followed when ma ingdecisions. – Pro#e! res

• = se0uence of actions to be followed in order toachieve an ob%ective.

– 7 les• = statement of e!actl" what should or should not be

done.


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"pes of lans cont-d

•

Single)9se lans – Programs an! b !gets !evelope! for han!ling

nonrepetitive sit ations$ – Program

•

= set of activities designed to accomplish anob%ective over a specified period of time. – Program !evelopment

• Set pro%ect ob%ectives.• 5rea the pro%ect down into a se0uence of steps.• =ssign responsibilit" for each step.• stablish starting and ending times.• Determine the resources needed for each step.


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"pes of lans cont-d

•

Single)9se lans cont-d – B !get

• Bepresents the funds allocated to operate a unit fora fi!ed period of time.

•

7s a planning tool initiall" and becomes a controltool after implementation of the plan.


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Standing lans versus Single)9se lans

"/hibit %& *


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"pes of lans cont-d

•

;ontingenc" lans – Alternative plans to be implemente! if

n#ontrollable events o## r$ – -eveloping a #ontingen#y plan

• hat might go wrong6• Iow can 7 prevent it from happening6• 7f it does occur, what can 7 do to minimi*e its effect6


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7mplementing and ;ontrolling Strategies

•

7mplementing – Top an! mi!!le managers plan' whereas lower1level

f n#tional managers an! employees implementstrategies$

– 8 ##essf l implementation re? ires effe#tive an!

effi#ient s pport systems$• ;ontrolling

– The pro#ess of establishing an! implementingme#hanisms to ens re that ob.e#tives are a#hieve!$

– ,eas ring progress towar! a#hievement of ob.e#tivesan! taking #orre#tive a#tion when nee!e!$

– 8taying within the b !get when appropriate or #hangingit when ne#essary to meet #hanges in the environment$


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Learning Outcomes

1. !plain the use of a time log.

2. List and briefl" describe the three steps in the time managements"stem.

3. Define the following key terms(

After st !ying this appen!i/' yo sho l! be able to(

time management

time management s"stem


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=nal"*ing ime 9se

•

he ime Log – A !aily !iary that tra#ks yo r a#tivities an! enables yo to !eterminehow yo spen! yo r time ea#h !ay$

• =nal"*ing ime Logs – -etermine how m #h time yo are spen!ing on yo r high1priority : P;

an! low1priority :>P; responsibilities$ – +!entify areas where yo spen! too m #h time :TT;$ – +!entify areas where yo !o not spen! eno gh time : T;$ – +!entify ma.or interr ptions :+; that keep yo from !oing what yo want

to get !one$ – +!entify tasks that #o l! be !elegate! to someone else :-;$ – ow m #h time !oes yo r boss #ontrol :B; ow m #h time !o yo r

employees #ontrol :"; ow m #h time !o others o tsi!e o tsi!e yo r!epartment #ontrol :9; ow m #h time !o yo a#t ally #ontrol :,;

– >ook for #risis sit ations :C;$ – >ook for habits' patterns' an! ten!en#ies$


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= ime 4anagement S"stem

•

Ge" components of a time managements"stem:

– Priorities – 9b.e#tives – Plans – 8#he! les

• he ime 4anagement rocess –

8tep $ Plan ea#h week . – 8tep 2$ 8#he! le ea#h week . – 8tep )$ 8#he! le ea#h !ay .


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ee l" lanner

"/hibit A%&2


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Dail" Schedule

"/hibit A%&*


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= ime 4anagement S"stem cont-d

•

Scheduling ips – -on t be too optimisti#D s#he! le eno gh time

to !o ea#h task$ – 9n#e tasks are prioriti

06 the Strategic & Operational Planning Process

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