SIBUGAY TECHNICAL INSTITUTE INCORPORATED (STII)

MANAGEMENT
 Principles of Management

Goal Goals and Plans

A desired future state that the

organization wants to achieve.
 What do we want?
Plan
A blueprint of the actions
necessary to reach the desired
goal.
 How do we get there?
 Planning
• Planning Dimensions
–Level of management
–Type of plan
–Scope of the plan
–Time horizon of the plan
–Plan’s repetitiveness
 Planning Dimensions

Levels of Goals/Plans - NASA

 A Mission Statement describes our purpose.

Mission
Statement Everything we do is focused on getting there.

Corporate Strategic  Strategic level is the “Big Picture”.

Strategy Plans
Senior Management
Take a man to the moon by 1970.

Business Tactical Plans  Tactics break strategies into steps.

Tactical Goals
Middle Management
Build a rocket and launch pad.

Functional Goals Functional Plans  And smaller steps.

Lower Management Build part of a rocket.
 Types of Plans
• Standing Plans
–Policies
• General guidelines to be followed when making
decisions.
–Procedures
• A sequence of actions to be followed in order to achieve
an objective.
–Rules
• A statement of exactly what should or should not be
done.
 Types of Plans (cont’d)
• Single-Use Plans
–Program
• A set of activities designed to accomplish an objective
over a specified period of time.
–Program development
• Assign responsibility for each step.
• Establish starting and ending times.
–Budget
• Represents the funds allocated to operate a unit for a
fixed period of time.
• Is a planning tool initially and becomes a control tool
after implementation of the plan.
Standing versus Single-Use Plans

Exhibit 5–2
The Strategic Process

Exhibit 5–3
Strategic and Operational Levels

Exhibit 5–4
 Company Situation Analysis Steps

1. Assessment of the present strategy based

on performance.

2. SWOT analysis.

3. Competitive Strength Assessment

(competitive advantage).

4. Conclusions concerning competitive

position.

5. Determination of the strategic issues and

problems that need to be addressed
through strategic processes.

Exhibit 5–6
 Strategic Management Process
Situation Analysis via SWOT
Scan External
Identify Strategic
Environment
Factors
•National •Opportunities
•Global •Threats

Implementing Strategy
Identify
Evaluate Current: Define New: via Changes in:
•Mission •Mission Strategic: •Structure
SWOT
•Goals •Corporate
•Goals •Human resources
•Grand Strategy •Business
•Grand Strategy •Information &
•Functional control systems

Scan Internal Identify Strategic

Environment Factors
•Core •Strengths
Competence
•Weaknesses
•Synergy
•Value Creation
SWOT Analysis for
Starbucks Coffee

Exhibit 5–7
“IF YOU GIVE UP ON
THE FIRST SIGN OF
STRUGGLE,
YOU ARE NOT
READY TO BE
SUCCESSFUL.’’