LEVELS OF STRATEGY

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LEVELS OF STRATEGY

• CORPORATE
• BUSINESS (SBU)
• FUNCTIONAL (OPERATIONAL)

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

• OVERALL, GRAND STRATEGY
• PORTFOLIO STRATEGY
• BCG MATRIX
• GE BUSINESS SCREEN

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BENCHMARKING

• COMPARE TO BEST IN CLASS
• BASED ON KEY SUCCESS FACTORS

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TYPES OF PLANS

• STRATEGIC
• OPERATIONAL
• TACTICAL
• GOALS/OBJECTIVES
• POLICY
• PROCEDURE
• RULE

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GOAL SETTING
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SINGLE, SPECIFIC TOPIC

• Not a vague abstraction
• We will maximize profits.
• We will be the best.
• Better We will increase profits by 10.

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FOCUS ON RESULT,Not on Activity

• Activity will not result in goal
• Example Goal is to increase advertising
  expenditure by 15 in 1996.
• Goal is result of activity
• Better Advertising will be increased by 15 in
  1996 in order to increase market share from 8 to
  10.

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MEASURE WHEN FEASIBLE

• Must at least be verifiable

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HAVE A DEADLINE
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GOALS

• SETTING GOALS
• NETWORK OF GOALS
• MULTIPLE GOALS
• SET PRIORITIES

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GOALS

• STATED GOALS
• REAL GOALS

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MBO

• A PLANNING TOOL
• MOTIVATIONAL TOOL
• CONTROL TOOL

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POLICY

• GUIDELINE TO AUTHORITY
• USE TO DELEGATE AUTHORITY

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PROCEDURE

• GUIDE TO ACTION
• SERIES OF STEPS
• NO AUTHORITY
• USUALLY A STANDING PLAN

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TYPES OF BUDGETS

• CASH
• EXPENSE
• SALES
• CAPITAL EXPENDITURE

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BASE OF BUDGET

• INCREMENTAL
• ZERO BASE

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FORECASTING

• QUANTITATAIVE METHODS
• TIME SERIES
• REGRESSION...
• QUALITATIVE METHODS
• JURY OF OPINION
• SALES FORCE COMPOSITION
• CUSTOMER

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OTHER TYPES OF PLANS

• SINGLE USE
• STANDING
• CONTINGENCY (ALTERNATIVE)
• FLEXIBLE
• DIRECTIONAL
• SPECIFIC

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SCHEDULING

• GANTT CHART
• LOAD CHART
• PERT

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OTHER TOOLS

• BREAK EVEN ANALYSIS
• LINEAR PROGRAMMING
• QUEUING THEORY
• PROBABILITY THEORY
• SIMULATION

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LENGTH OF PLAN

• SHORT TERM
• USUALLY ONE YEAR OR LESS
• LONG TERM
• USUALLY FIVE YEARS
• COMMITMENT CONCEPT
• SUNK COSTS

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IMPLEMENTATION PLANS

• WHO
• WHAT
• WHEN
• WHERE
• HOW
• SUPPLIERS
• COORDINATION
• WHAT TO MEASURE/CONTROL

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PLAN OF ACTION OUTLINE

• State Goal
• Way(s) to accomplish it
• Accomplishment interfere with another?
• Date(s) to be finished
• Problems I may encounter/create?
• Suppliers, sources of help
• Coordinate with???
• Things to monitor, measure

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IMPLEMENT THE PLAN

• ACTION PLANS
• TIME MANAGEMENT
• IMPORTANT TASKS
• URGENT TASKS

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LEVEL IN ORGANIZATION

• HIGHER LEVEL IN ORGANIZATION
• STRATEGIC
• LONGER TERM
• MORE DIRECTIONAL
• LOWER LEVEL IN ORGANIZATION
• OPERATIONAL, TACTICAL
• SHORTER TERM
• MORE SPECIFIC

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ENVIRONMENTAL UNCERTAINTY

• MORE UNCERTAIN
• DIRECTIONAL
• SHORTER TERM
• MORE CERTAIN
• SPECIFIC
• LONGER TERM

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COMPANY LIFE CYCLE

• FORMATION
• MORE DIRECTIONAL
• GROWTH
• SHORTER TERM
• MORE SPECIFIC
• MATURITY
• SPECIFIC
• LONGER TERM
• DECLINE
• SHORTER TERM
• MORE DIRECTIONAL