PART III: PLANNING

Mission and Vision Statement

The What and Why of Planning  A Vision Statement describes the
desired future position of the
 Planning involves defining the
company.
organization’s goals, establishing
 A Mission Statement defines the
strategies for achieving those
company’s business, its
goals, and developing plans to
objectives and its approach to
integrate and coordinate work
reach those objectives.
activities. It is concerned with
both ends (what) and means
(how).
Purpose of Vision and Mission

4 Reason Why Do manager plan  Internally

1. Planning provides direction to  Guide management’s thinking on

managers and non-managers
alike.
2. Planning reduces uncertainty by
forcing managers to look ahead,
anticipate change, consider the
impact of change, and develop
appropriate responses.
3. Planning minimizes waste and
redundancy.
4. Planning establishes the goals or
standards used in controlling.
strategic issues, especially during
times of significant change
 Help define performance
standards
 Inspire employees to work more
productively by providing focus
and common goals
 Guide employee decision making
 Help establish a framework for
ethical behavior

 Externally
Nature of Planning
The nature of planning can be  Enlist external support
understood by examining its four major  Create closer linkages and better
aspects; communication with customers,
suppliers and alliance partners
1. It is a contribution to objectives,
 Serve as a public relations tool
2. It is primacy among the
manager’s tasks,
3. It is pervasiveness, and
4. The efficiency of resulting plans.
 management functions—planning,
organizing, leading, and controlling.
Types of Plan
Strategic Planning Process
1. Breadth
 Strategic 1. Identifying the organizations
 Operational current mission, goals and
2. Time Frame strategies
 Short-term 2. Doing an external analysis
 Long-term -threats
3. Specificity
 Specific -opportunities
 Directional 3. Doing an internal analysis
4. Frequency of Use
 Single-used - Resources
 Standing - Capabilities
5. Other plans - Core Competencies
- Strength
 Contingency plan
- Weaknesses
Setting Goals and Developing Plans - SWOT analysis
Approaches to setting goals 4. Formulating Strategies
1. Traditional goal setting 5. Implementing Strategies
2. Means-end chain
6. Evaluating Results
3. Management by Objectives
(MBO)
 Characteristics of well written
Steps of Strategy Formulation
goals
 Steps in goal setting 1. Define the organization,
2. Define the strategic mission,
Developing Plans
3. Define the strategic objectives,
 Contingency Factors in planning 4. Define the competitive strategy,
-Commitment Concepts 5. Implement strategies, and
 Approaches to planning 6. Evaluate progress.
-Formal planning department

Strategic Management
Strategic management is what
managers do to develop the
organization’s strategies. It’s an
important task involving all the basic