Rock Paper Scissor Tournament

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Rock Paper Scissor Tournament
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Strategic Management Process

• 1.4

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Planning

• Serves as a guide for making decisions
• The act of setting goals, developing strategies,
  outlining tasks, creating timelines
• Each part of a business develops its own plan to
  guide its operations
• All plans must work together toward the business
  overall goals.

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Importance of Planning

• Most important function of management
• The difference between higher profits or huge
  loses, expansion or failure
• All managers are involved with planning in some
  way
• Deciding to expand and build a new building to
  deciding on work schedules

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Importance of Planning

• Mangers use their plans to determine whether the
  business is making progress
• It encourages managers to be more specific in
  their decisions
• Planning in a large business is like a jigsaw
  puzzle. All the pieces must work together
• Coordination to avoid conflict missed
  opportunities
• Sharing plans between departments helps each see
  how their plans effect another

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Levels of Planning

• Managers plan on two levels
• Strategic planning (upper management)
• Long term
• Provides broad goals direction for the entire
  business
• Operational (mid-level management)
• Short term
• Identifies specific activities for EACH area of
  the business

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Setting Goals

• You will never know when you have arrived if you
  dont know where you are going.
• Goal Is a specific statement of a result the
  business expects to achieve
• Characteristics of Effective Goals
• 1. Specific Meaningful 3. Clearly
  Communicated
• 2. Achievable (realistic) 4. Consistent
  with each other
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  and overall company

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Operation Planning

• Determines the
• How it will be done
• Who will do it
• What resources are needed to do it
• Operational plans direct the day-to-day
  activities of a business

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Planning Tools

• Budgets most widely used tool
• Schedules deadlines
• Standards Quality, Quantity, Time, Cost
• Policies general rule for the whole business
• Procedure steps followed to perform certain
  work
• Research Gathering information

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What is Strategic Management?

• Application of the basic planning process at the
  highest levels of the company
• Top management sets goals for the performance of
  the company
• Carefully formulating, implementing, and
  evaluating plans and strategies

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What is Strategic Management?

• Most important part is developing strategic plans
• Plans must remain current as changes occur inside
  and outside the company
• Involves many levels of management
• Top level formally develops basic plans
• Different departments may be asked to develop
  plans for their own areas
• A solid plan guarantees that plans are
  coordinated and are supported by everyone in the
  company

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Strategic Management Approach

• Three phases critical to the success of the
  process
• Formulation
• Developing the strategic plan
• Implementation
• Putting the formulated plan to work
• Evaluation
• Continuously evaluating and updating the
  strategic plan

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Formulating Strategy

• Developing the grand- and business-level
  strategies to be used by the company
• Companys strengths/weaknesses and
  threats/opportunities shape the strategies
• First step is to understand the current position
  of the company
• Identify mission, identify past and present
  strategies, diagnose the companys past and
  present performance, set objectives for the
  companys operation

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Formulating Strategy

• Identify the mission statement
• Outlines why the company exists
• Describes the companys basic products and/or
  services and defines markets and sources of
  revenue
• Designed to accomplish several goals and ensures
  a common purpose within the company

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Identifying Past and Present Strategies

• Companies need to understand and appreciate their
  corporate history
• Strategic managers should ask
• Has past strategy been developed?
• If not, can past history of the company be
  analyzed to identify the strategy that has
  evolved?
• If yes, has the strategy been recorded in
  writing?

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Diagnosing Past and Present Performance

• A corporate planner must decide if past
  strategies worked and if strategic changes are
  needed by asking
• How is the company currently performing?
• How has it performed during the past few years?
• Is the performance trend moving up or down?

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Setting Goals

• Concise statements that provide direction
  employees and set standards for achieving the
  companys strategic plan
• Established in many areas (see handout)
• Goals must be reevaluated as the environment and
  opportunities change
• Multiple goals are used to reflect the desired
  performance

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Policies, Procedures, and Rules

• Policies are broad general guides to action that
  establish boundaries within which employees must
  operate
• answering all written customer complaints in
  writing within 10 days

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Policies, Procedures, and Rules

• Procedures are detailed series of related
  steps/tasks written to implement a policy
• Define methods through which policies are
  achieved
• the customer service representative must note
  the complaint of Form 622 and forward the yellow
  copy of the form
• Rules detail specific and definite corporate
  actions that employees must follow
• Leave little doubt about what is to be done
• no smoking in the conference room

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Implementing Strategy

• Action stage of strategic management
• Managers determine and implement the most
  appropriate company structure, motivate
  employees, develop short-range goals, and
  establish functional strategies
• Strategy must fit with current company policies
• Or conflicting policies must be changed

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Evaluating and Controlling the Strategic Plan

• Process of continuously monitoring the companys
  progress toward its long-range goals and mission
• Managers should ask
• Does the grand strategy need revising?
• Where are problems likely to occur?
• Basic strategy evaluation strategies
• Review external and internal factors that are the
  bases for current strategies
• Measure performance
• Take corrective action

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SWOT Analysis

• Strengths, Weaknesses, Opportunities, Threats
• Process that allows companies to evaluate overall
  health
• Internal (SW) Can Control
• External (OT) Cant Control
• Most important result of a SWOT analysis is the
  ability to draw conclusions about the
  attractiveness of the companys situation and the
  need for strategic action

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SWOT Analysis for Santa
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Evaluating and Controlling the Strategic Plan

• Emphasis is making the companys managers aware
  of the problems that are likely to occur and of
  the actions to take if they do arise
• Plan ahead and avoid disaster
• Strategic planning and evaluation should be done
  on a predetermined schedule and as frequently as
  necessary, determined by internal and
  environmental factors