O RGA N I Z AT I O N

AND
M A NAG E M E N T
 PLANNING &
DECISION MAKING
 O R G A N I Z AT I O N ’ S M I S S I O N

❑ Outlines the organization’s purpose,

premises, values, and directions.

❖ Mission

❖ Strategic Goals

❖ Strategic Plans
HONDA MISSION, VISION & VALUES | CO M PA R A B LY
 O R G A N I Z AT I O N A L G O A L S
✓ Provide guidance and unified direction.

✓ Facilitate good planning.

✓ Serve as a source of motivation.

✓ Effective mechanism for evaluation and

control.
 KINDS OF GOALS
✓ Strategic goals – set by organizations’
top management. It focuses on broader
general issues.

✓ Ta c t i c a l g o a l s

✓ Operational goals
 KINDS OF GOALS
✓ Strategic goals – set by organizations’
top management. It focuses on broader
general issues.

✓ Example: Increase the sales revenue by

10% in year three (3) period.
 KINDS OF GOALS
✓ Ta c t i c a l goals – set by organizations’
middle managers.

✓ The focus is on how to operationalize

actions necessary to achieve the
strategic goals.
 KINDS OF GOALS

✓ Operational goals – set by lower-level

managers.
 K I N D S O F O R G A N I Z AT I O N A L P L A N

✓ Strategic plan

✓ Ta c t i c a l p l a n

✓ Operational plan
 S T R AT E G I C P L A N
✓ A general plan outlining decisions about
the resource allocation, priorities, and
action steps necessary to reach
strategic goals.

✓ G e n e r a l l y, have an extended time

horizon.
 TA C T I C A L P L A N
✓ Is developed to implement a specific
part of the strategic plan.

✓ It has a shorter time horizon.

 O P E R AT I O N A L P L A N

✓A plan that focuses on carrying out

tactical plans to achieve operational
goals.
USING SWOT ANALYSIS
TO FORMULATE
STRATEGY
 ASYNCHRONOUS ACTIVITY

STUDY SWOT ANALYSIS AND DETERMINE WHY IS

I T I M P O R TA N T I N M A N A G I N G A B U S I N E S S .

Students’ participation: What is the

significance of SWOT analysis in managing
a business.
 STRENGTHS, WEAKNESSES,
O P P O R T U N I T I E S , A N D T H R E AT S
[SWOT]
A good strategy will:

✓ Exploit an organization’s opportunities

and strengths.

✓ Neutralize threats.

✓ Address (or avoid) weakness.

 ASYNCHRONOUS ACTIVITY

✓ Make a list of your strengths and weaknesses.

OR

✓ Make a list of a particular company’s strengths

and weaknesses.
Students’ participation:
weaknesses and strengths
O R G A N I Z AT I O N A L O P P O R T U N I T I E S

An area in the environment that, if

exploited, may generate higher
performance.
 O R G A N I Z AT I O N A L T H R E AT S
✓ An area that increases the difficulty of
an organization performing at a high
level.

- Competitors

- Research and development

- Cost of raw materials

 FORM ULATING
BUSINESS LEVEL
STRATEGIES
 L E V E L S O F S T R AT E G I E S

Business-level strategy

Corporate-level strategy
 B U S I N E S S L E V E L S T R AT E G Y

The set of strategic alternatives from

which an organization chooses as it
conducts business in a particular industry
or market.
 B U S I N E S S L E V E L S T R AT E G I E S

✓ Generic strategies

✓ Strategies based on product life cycle

 G E N E R I C S T R AT E G Y

✓ Differentiation strategy – the organization

seeks to distinguish itself from its
competitors through the quality of its
products or services.

O F F I C I A L R O L E X W E B S I T E - S W I S S L U X U R Y W AT C H E S

Customers are willing to pay more for the

perceived extra value.
 G E N E R I C S T R AT E G Y

✓ Overall-cost leadership strategy– the

organization attempts to gain a competitive
advantage by reducing its cost below the
cost of competing firms.
 G E N E R I C S T R AT E G Y

✓ Focus strategy – the organization focuses

on a specific regional market, product line,
or group of buyers.

ABOUT SOLEUS RUNNING

 C O R P O R AT E - L E V E L S T R AT E G Y

The set of strategic alternatives from

which an organization chooses as it
manages its operations simultaneously
across several industries and several
markets.
THANK YOU!
 ASYNCHRONOUS ACTIVITY

✓ Study corporate-level strategy

- diversification

- single-product strategy