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1、Chapter 3Foundations of PlanningChapter 3Foundations of Plann 2008 Prentice Hall, Inc. All rights reserved.32L E A R N I N G O U T C O M E SDefine planning.Explain the potential benefits of planning.Identify potential drawbacks to planning.Distinguish between strategic and tactical plans.Recognize w
2、hen directional plans are preferred over specific plans.Define management by objectives and identify its common elements.Outline the steps in the strategic management process.After reading this chapter, you will be able to: 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.33
3、L E A R N I N G O U T C O M E S (contd)Describe the four grand strategies.Explain SWOT analysis.Describe how entrepreneurs identify a competitive advantage.After reading this chapter, you will be able to: 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.34Planning DefinedDef
4、ining the organizations objectives or goalsEstablishing an overall strategy for achieving those goalsDeveloping a comprehensive hierarchy of plans to integrate and coordinate activitiesPlanning is concerned with ends (what is to be done) as well as with means (how it is to be done). 2008 Prentice Ha
5、ll, Inc. All 2008 Prentice Hall, Inc. All rights reserved.35EXHIBIT 31Reasons for Planning 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.36Criticisms Of Formal PlanningPlanning may create rigidity.Plans cant be developed for a dynamic environment.Formal plans cant replace
6、 intuition and creativity.Planning focuses managers attention on todays competition, not on tomorrows survival.Formal planning reinforces success, which may lead to failure. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.37The Bottom Line: Does Planning Improve Organizatio
7、nal Performance?Formal planning means higher profits, higher return on assets, and other positive financial results.Planning process quality and implementation contribute more to high performance than does the extent of planning.When external environment restrictions allowed managers few viable alte
8、rnatives, planning did not lead to higher performance. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.38EXHIBIT 32Types of PlansBREADTH TIME FREQUENCY OF USE FRAME SPECIFICITY OF USEStrategicLong termDirectionalSingle useTacticalShort termSpecificStanding 2008 Prentice Hal
9、l, Inc. All 2008 Prentice Hall, Inc. All rights reserved.39Planning: Focus and Time Strategic PlansAre organization-wide, establish overall objectives, and position an organization in terms of its environment.Tactical PlansSpecify the details of how an organizations overall objectives are to be achi
10、eved.Short-term PlansCover less than one year.Long-term PlansExtend beyond five years. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.310Strategic PlanningStrategic Plans Apply broadly to the entire organization.Establish the organizations overall objectives.Seek to positi
11、on the organization in terms of its environment. Provide direction to drive an organizations efforts to achieve its goals.Serve as the basis for the tactical plans.Cover extended periods of time.Are less specific in their details. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights rese
12、rved.311Tactical PlanningTactical Plans (Operational Plans)Apply to specific parts of the organization.Are derived from strategic objectives.Specify the details of how the overall objectives are to be achieved.Cover shorter periods of time.Must be updated continuously to meet current challenges. 200
13、8 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.312EXHIBIT 33Directional Versus Specific Plans 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.313Specific and Directional PlansSpecific PlansClearly defined objectives and leave no room for misinterpret
14、ation.“What, when, where, how much, and by whom” (process-focus)Directional PlansAre flexible plans that set out general guidelines.“Go from here to there” (outcome-focus) 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.314Single-Use and Standing PlansSingle-Use PlanIs used
15、 to meet the needs of a particular or unique situation.Single-day sales advertisementStanding PlanIs ongoing and provides guidance for repeatedly performed actions in an organization.Customer satisfaction policy 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.315Management
16、by ObjectivesManagement by Objectives (MBO)A system in which specific performance objectives are jointly determined by subordinates and their supervisors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of that progress.Links individual and unit performanc
17、e objectives at all levels with overall organizational objectives.Focuses operational efforts on organizationally important results.Motivates rather than controls. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.316EXHIBIT 34Cascading of Objectives 2008 Prentice Hall, Inc.
18、All 2008 Prentice Hall, Inc. All rights reserved.317Management by Objectives (contd)Goal SpecificityExplicit Performance PeriodCommon Elements in an MBO ProgramParticipative Decision MakingPerformance Feedback 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.318Setting Emplo
19、yee ObjectivesIdentify an employees key job tasks.Establish specific and challenging goals for each key task.Allow the employee to actively participate.Prioritize goals.Build in feedback mechanisms to assess goal progress.Link rewards to goal attainment. 2008 Prentice Hall, Inc. All 2008 Prentice Ha
20、ll, Inc. All rights reserved.319Does MBO Work?Goal SpecificityParticipationIs There a Downside to MBO?Goal DifficultyTop Management 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.320EXHIBIT 35The Strategic Management ProcessStrategic Management ProcessA nine-step process t
21、hat involves strategic planning, implementation, and evaluation 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.321Steps in Writing a Business PlanDescribe your companys background and purpose.Identify your short- and long-term objectives.Provide a thorough market analysis.
22、Describe your development and production emphasis.Describe how youll market your product or service. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.322The Organizations Current IdentityMission StatementDefines the present purpose of the organization.ObjectivesAre specific
23、measures (milestones) for achievement, progress, and performance.Strategic PlanExplains the business founders vision and describes the strategy and operations of that business. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.323Analyze the EnvironmentEnvironmental ScanningI
24、nvolves screening large amounts of information to detect emerging trends and create a set of scenariosCompetitive IntelligenceInformation about competitors that allows managers to anticipate competitors actions rather than merely react to them 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. Al
25、l rights reserved.324EXHIBIT 36SWOT: Identifying Organizational OpportunitiesSWOT analysisAnalysis of an organizations strengths, weaknesses, opportunities, and threats in order to identify a strategic niche that the organization can exploit 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All
26、rights reserved.325SWOT AnalysisStrengths (Strategic)Internal resources that are available or things that an organization does well.Core competency: a unique skill or resource that represents a competitive edge.WeaknessesResources that an organization lacks or activities that it does not do well.Opp
27、ortunities (Strategic)Positive external environmental factors.ThreatsNegative external environmental factors. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.326How Do You Formulate Strategies?GrowthCombinationStabilityGrand StrategiesRetrenchment 2008 Prentice Hall, Inc. A
28、ll 2008 Prentice Hall, Inc. All rights reserved.327Growth StrategiesDirect ExpansionAcquisitionStrategies for GrowthMerger 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.328Competitive StrategiesCost LeadershipFocusStrategies for Competitive AdvantageDifferentiation 2008 P
29、rentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.329Sustaining a Competitive AdvantageCompetitive advantage counts for little if it cannot be sustained over the long-term.Factors reducing competitive advantageEvolutionary changes in the industryTechnological changesCustomer prefer
30、encesImitation by competitorsDefending competitive advantagePatents, copyrights, trademarks, regulations, and tariffsCompeting on priceLong-term contracts with suppliers (and customers) 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.330What Happens After Strategies Are For
31、mulated?StrategyFormulationEvaluation Implementationand Execution 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.331Quality as a Strategic WeaponBenchmarkingThe search for the best practices among competitors or noncompetitors that lead to their superior performance.ISO 90
32、00 seriesQuality management standards set by the International Organization for Standardization (ISO) ISO 14000Companies achieving this certification will have demonstrated that they are environmentally responsible. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.332Attaini
33、ng Six Sigma QualitySix SigmaA philosophy and measurement process developed in the 1980s at Motorola.To design, measure, analyze, and control the input side of a production process to achieve the goal of no more than 3.4 defects per million parts or procedures.A philosophy and measurement process that attempts to design in quality as a product is being made. 2008 Prentice Hall, Inc. All 2008 Prentice Hall, Inc. All rights reserved.333EXHIBIT 37Six Sigma 12-Process StepsSelect the critical-to-quality characteristics.Define the
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