The following will be discussed in this chapter: Determining mission and goals, strategy formulation, corporate-level strategies, international strategy, organizational planning, importance of planning, planning process, level of planning. | Management Practices Lecture 11 1 Recap Organizational Planning Importance of Planning Planning Process Level of Planning 2 Today’s Lecture Determining Mission and Goals Strategy Formulation Corporate-Level Strategies International Strategy 3 Determining Mission and Goals This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer and the needs we can and should satisfy. This also pinpoints competitors. B. Establishing major goals: states who will compete in the business. Should stretch the organization to new heights. Goals must also be realistic and have a time period in which they are achieved. 4 Mission Statements Company Fauji Cement AT&T Mission Statement While maintaining its leading position in quality of cement maximize profitability through reduced cost of production and enhanced market share. We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to | Management Practices Lecture 11 1 Recap Organizational Planning Importance of Planning Planning Process Level of Planning 2 Today’s Lecture Determining Mission and Goals Strategy Formulation Corporate-Level Strategies International Strategy 3 Determining Mission and Goals This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer and the needs we can and should satisfy. This also pinpoints competitors. B. Establishing major goals: states who will compete in the business. Should stretch the organization to new heights. Goals must also be realistic and have a time period in which they are achieved. 4 Mission Statements Company Fauji Cement AT&T Mission Statement While maintaining its leading position in quality of cement maximize profitability through reduced cost of production and enhanced market share. We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to the information and services they want and need -- anytime, anywhere. 5 Strategy Formulation Managers analyze the current situation to develop strategies achieving the mission. SWOT analysis: a planning to identify: Organizational Strengths and Weaknesses. Strengths: manufacturing ability, marketing skills. Weaknesses: high labor turnover, weak financials. Environmental Opportunities and Threats. Opportunities: new markets. Threats: economic recession, competitors 6 Planning & Strategy Formulation Corporate-level strategy develop a plan of action maximizing long-run value Business-level strategy a plan of action to take advantage of opportunities and minimize threats Functional-level strategy a plan of action improving department’s ability to create value SWOT analysis identifies strengths & weaknesses inside the firm and opportunities & threats in the environment. 7 Corporate-Level Strategies Concentrate in single business: McDonalds focuses in the fast food business. Can become very
