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Management Fundamentals

Concepts, Applications, Skills Development

The Strategic & Operational Planning Process
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Strategic Planning
• The process of developing a mission and long range planning objectives and determining in advance how they will be accomplished.
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Operational Planning
•The process of setting shortrange objectives and determining in advance how they will be accomplished.
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The Strategic Process
1. Develop mission

5. Implement & control strategies
4. Develop strategies

2. Analyze environment

3. Set objectives

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3 Levels of Strategies
Corporate Business
Functional
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Strategic & Operational Levels
Management Level Strategy Level Planning Level/ Time Range Strategic/Long Strategic/Long Operational/Short Upper Upper and Middle Middle and Lower Corporate Strategy Business Strategy Functional Strategies

Operations

Marketing

Finance

Human Resources

Others
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Rivalry among competing sellers

Threat of substitute products/services

5 Competitive Forces
Potential new entrants Power of suppliers Power of buyers

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SWOT Analysis
• An organization’s internal environmental strengths and weaknesses and external environmental opportunities and threats are determined.
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Benchmarking
•The process of comparing an organization’s products and processes with those of other companies.
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Goals
General targets to be accomplished
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Objectives
•What is to be accomplished in singular, specific, and measurable terms with a target date.
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Writing Objectives Model
Criteria:
(1) (2) (3) (4) Infinitive + Action verb + Singular, specific, measurable result + Target date

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Management By Objectives
• The process in which managers and employees jointly set objectives for the employees, evaluate the performance, and reward according to results.
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MBO

Corporate Grand & Growth Strategies
Grand Strategy

Growth

Stability

Turnaround & Retrenchment

Combination

Growth Strategies: •Concentration •Integration •Diversification
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Selecting Adaptive Strategies
Rate of

Environmental
Change

Potential Growth Rate

Adaptive Strategy

Similar to Grand Strategy

Fast Moderate Slow

High
Moderate Low

Prospector Analyzer Defender

Growth Combination

Stability

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Product Life Cycle
Product Life Cycle Stages Over Time

Product Life Cycle Stages
Sales

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

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Functional-Level Operational Strategies
•Marketing •Operations •HR •Finance •R & D
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