Planning, Strategy, Effectiveness: Overview

1
Planning, Strategy, Effectiveness Overview

• Engage in SWOT Analysis
• Establish and Communicate Mission/Goals
• Set Priorties (bargaining, if necessary)
• Select Strategies
• Assess Effectiveness
• Reconsider the Above

2
SWOT Analysis

• INTERNAL ENVIRONMENT
• STRENGTHS
• WEAKNESSES
• EXTERNAL ENVIRONMENT
• OPPORTUNITIES
• THREATS

3
The Importance of Goals and Plans

• Legitimacy to external audiences such as
• Investors
• Customers
• Suppliers
• Community
• A source of motivation and guidance for internal
  audiences

4
Common Criticisms of Planning

• Creates rigidity
• Doesnt work in dynamic environment
• Cant replace intuition and creativity

5
Should Organizations Plan?

• Most orgs. do better by planning - Match degree
  and frequency of planning to rate of change in
  the environment
• Andy Grove (CEO of INTEL) plans like a fire
  department plans

6
Organizational Mission

• Most general purposes, goals, plans
• Long run vision, values
• What distinguishes it from other organizations
• Focus on items such as
• Market and customers
• Product quality
• Location of facilities
• Attitude toward employees

7
Mission Statements
Company Compaq ATT
Mission Statement Compaq, along with our
partners, will deliver compelling products and
services of the highest quality that will
transform computing into an intuitive experience
that extends human capability on all planes --
communication, education, work, and play. We
are dedicated to being the worlds best at
bringing people together -- giving them easy
access to each other and to the information and
services they want and need -- anytime, anywhere.
8
Organizational Goals

• Official Goal - Mission
• Operative Goals
• Overall Performance
• Resource Management
• Market Share
• Employee Development
• Innovation
• Productivity
• Social Responsibility

9
Porters Competitive Strategies
Strategy
Low Cost
Differentiation
Low-Cost Leadership
Differentiation
Many
Number of Market Segments
Focused Low-Cost Leadership
Focused Differentiation
Few
10
Porters Competitive Strategies

• Differentiation (Maytag, Mary Kay, Perdue, L.L.
  Bean, Nike)
• Cost Leadership (Wal-Mart, Southwest Air, Gallo
  Wine, Motel 6)
• Focused Differentiation (Stouffers Lean Cuisine,
  Mercedes, Rolex)
• Focused Cost Leadership (Ft. Howard Paper, ARCO
  Gasoline)

11
Organizational Effectiveness

• Effectiveness vs. Efficiency
• Traditional Effectiveness Approaches
• Goal Approach (outputs)
• Resource-Based Approach (inputs)
• Internal Process Approach (transformation)
• Human Relations
• Economic Efficiency
• Contemporary Effectiveness Approach
• Stakeholder Approach (combines above by focusing
  on concerned groups)

12
Organizational Effectiveness

• FORTUNE magazine's annual "America's Most Admired
  Corporations." The rankings are a composite of 8
  attributes
• Quality of Management,
• Quality of Products and Services
• Innovativeness
• Long-term Investment Value
• Financial Soundness
• Ability to Attract, Develop, and Keep Talented
  People
• Community and Environmental Responsibility
• Use of Corporate Assets