GROUP 4

Principles of
Management
 Group Members
Lê Quốc Nam Hoàng Minh Quang Huỳnh Ngọc Uyển My Phạm Gia Khanh

WSU21000215 WSU21000122 WSU21010005 WSU21000046

 Chap 8
Planning and Goal - Setting
 The What and
Why of Planning
Planning is the act of Planning’s benefits:
• Provide direction
defining an organization's
• Reduce uncertainty
goals and establishing
• Minimize waste and inefficiency
strategy to achieve them
• Improve management

The relationship between planning and performance:

1. Formally planned companies are recorded to have higher
profits than those who didn't
2. Perfectly completing a single plan and taking it into account
seems to be more effective than creating numerous plans.
3. A long-term plan brings more profits and benefits than
short-term plans.
 Setting Goals and Plans
 Types of Goals :
Stated goals Real goals

Strategic goals Financial goals

 Types of plans:
 Approaches to setting goals
Traditional goal setting
The top-tier managers set goals which then
Definition transfer to other lower areas in the
organization.
Management by Objectives
(MBO)
This approach requires numerous agreement
on the goals and then using the goals to
evaluate the performance.

Can form an integrated network of goals, By using goals to motivate employees, this
which is called mean-ends-chain. In this approach can increase productivity among
network, an accomplished goal is necessary employees and enhance their performance
Pros for the next step. Therefore, the final result
will be significantly improved.

The transferring process between areas Require a viable and clear goals to motivate
may be difficult. employees
Cons The goals are not clearly defined, which are
hard to understand.
  Approaches to setting plans
Contingency factors that affect planning process

Organizational level
Degree of environmental uncertainty
Length of future commitments

Traditional planning Modern planning

Top-up managers assisted by the Other members in the organization can

formal planning department, whose
Definition responsibility is to write plans, will set
plans and then send them to the lower
sector of the organization.
Make the management of the planning
Pros process more careful and organized.
The plans made by top managers can
be unviable and may face objections
Cons by lower-level members.
make decisions in the planning
process based on the status of the
company.
The plans can be evaluated by
numerous members so that it efficiency
can be remarkably improved
Harder for managers to control the
entire plan.
There are too many ideas that are
difficult to sort out.
 Issues and Solutions
As the external environment rapidly changes, it is difficult for managers to set effective plans.

Tips for
01 while making plans.
managers
Managers have to be aware of random factors

Encourage employees to contribute to the

02 planning process.

Managers can use environmental scanning to

03 acknowledge the current trends.

Managers are suggested to use digital tools such

04 as cloud data, analysis software and the Internet
to help them with their planning process.
Chap 9
Strategic Planning
 Strategic management

What is Process of setting goals, procedures, and

Strategic objectives in order to make a company or
Management? organization more competitive
  Why is strategic management important?

The Best 1. Decide the future of

Contents Content
an organization
A

2. Help managers to 3. Help managers to

Content
adapt with rapid B
Content
C
control the complex and
changes diverse organization
 The strategic management process
6 steps in strategic management process

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Doing an Formulating Evaluating

external strategies results
analysis

Identifying the
Doing an Implementing
organization’s
internal strategies
current mission,
analysis
goals, and strategies
 Corporate strategies 
Types of corporate strategy
 What is a
Growth strategy corporate
•
•
Concentration
Vertical integration
strategy?
A unique plan or framework
• Horizontal integration that is long-term in nature
• Diversification 88%

45% Stability strategy

64%

Renewal strategy
 Competitive strategy
 What is a corporate strategy?

A direction for organizations to

compete in the business field.
To set an effective competitive
 Four areas of competitive advantages
strategy, managers must
understand the competitive
advantage Quality

Design thinking

Social media

Sustainability
  How to choose a competitive strategy?
Before choosing a competitive strategy, managers should evaluate the industries’
attractiveness and profitability by using the following Five Forces Model:

Bargaining power of buyers

Threat of being replaced Bargaining power of suppliers

Threat of new competitors Current rivalry

 Differentiation strategy

Cost leadership strategy

 Current strategic management issuses
 Why is strategic leadership important?

What does strategic

leadership mean?
Control the
problems when
Investigate the
it happen market

Develop the Connect between

organization employees and
president
It is a high level of management
 Important
organizational E
strategies for today’s E-business strategies
environment

Innovation strategies Customer service strategies

I C
THANK YOU