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7
The
Manager as a
Planner and
Strategist
Planning is the process used by managers to
identify and select goals and courses of
action for the organization.
*The organizational plan that results from
the planning process details the goals to be
attained.
*The pattern of decisions managers take to
reach these goals is the organization’s
strategy.
Determining the Organization’s
mission and goals
(Define the business)
Strategy formulation
(Analyze current situation &
develop strategies)
Strategy Implementation
(Allocate resources & responsibilities
to achieve strategies)
*Organizational mission: defined in the mission statement
which is a broad declaration of the overriding purpose.
* The mission statement identifies product, customers
and how the firm differs from competitors.
*Formulating strategy: managers analyze current situation and
develop strategies needed to achieve the mission.
*Implementing strategy: managers must decide how to allocate
resources between groups to ensure the strategy is
achieved.
Strategy
Implementation
Corporate
mission & goals
Divisional
goals
Functional
goals
Corporate-
level strategy
Business-
level strategy
Functional-
level strategy
Design of
Corporate
Structure
Control
Design of
Business-unit
Structure
Control
Design of
Functional
Structure
Control
Goal
Setting
Strategy
Formulation
Corporate-
level Plan
Business-
level Plan
Functional
level Plan
Corporate
Level
CEO
Corporate Office
Business
Level
GE
Aircraft
GE
Lighting
GE
Motors
GE
Plastics
NBC
Functional
Level Manufacturing
Marketing
Accounting
R & D
*Corporate-level: decisions by top managers.
* Considers on which businesses or markets to be in.
* Provides a framework for all other planning.
*Business-level: details divisional long-term goals and
structure.
* Identifies how this business meets corporate goals.
* Shows how the business will compete in market.
*Functional-level: actions taken by managers in departments
of manufacturing, marketing, etc.
* These plans state exactly how business-level strategies
are accomplished.
*Time horizon: refers to how far in the future the plan applies.
* Long-term plans are usually 5 years or more.
* Intermediate-term plans are 1 to 5 years.
* Corporate and business level plans specify long and
intermediate term.
* Short-term plans are less than 1 year.
* Functional plans focus on short to intermediate term.
*Most firms have a rolling planning cycle to amend plans
constantly.
*Standing plans: for programmed decisions.
* Managers develop policies, rules, and standard operating
procedures (SOP).
* Policies are general guides to action.
* Rules are a specific guide to action.
*Single-use plans: developed for a one-time, non programmed
issue. Usually consist of programs and projects.
* Programs: integrated plans achieving specific goals.
* Project: specific action plans to complete programs.
*Corporate level planning is done by top managers.
* Also approve business and functional level plans.
* Top managers should seek input on corporate level
issues from all management levels.
*Business and functional planning is done by divisional and
functional managers.
* Both management levels should also seek information
from other levels.
* Responsibility for specific planning may lie at a given
level, but all managers should be involved.
Planning determines where the organization is now and
where it will be in the future. Good planning provides:
* Participation: all managers are involved in setting
future goals.
* Sense of direction & purpose: Planning sets goals
and strategies for all managers.
* Coordination: Plans provide all parts of the firm
with understanding about how their systems fit with
the whole.
* Control: Plans specify who is in charge of
accomplishing a goal.
*Scenario Planning: generates several forecasts of different
future conditions and analyzes how to effectively
respond to them.
* Planning seeks to prepare for the future, but the
future is unknown.
* By generating multiple possible “futures” we can see
how our plans might work in each.
* Allows the firm to prepare for possible surprises.
* Scenario planning is a learning tool to improve
planning results.
*This is the first step of the planning process and is
accomplished by:
A. Define the business: seeks to identify our customer
and the needs we can and should satisfy.
* This also pinpoints competitors.
B. Establishing major goals: states who will compete
in the business.
* Should stretch the organization to new heights.
* Goals must also be realistic and have a time period in
which they are achieved.
We are dedicated to being the world’s
best at bringing people together --
giving them easy access to each other
and to the information and services
they want and need -- anytime,
anywhere.
AT & T
*Managers analyze the current situation to develop
strategies achieving the mission.
*SWOT analysis: a planning to identify:
* Organizational Strengths and Weaknesses.
* Strengths: manufacturing ability, marketing skills.
* Weaknesses: high labor turnover, weak financials.
* Environmental Opportunities and Threats.
* Opportunities: new markets.
* Threats: economic recession, competitors
Corporate-level strategy
develop a plan of action
maximizing long-run value
Business-level strategy
a plan of action to take
advantage of opportunities
and minimize threats
Functional-level strategy
a plan of action improving
department’s ability to
create value
SWOT analysis
identifies strengths &
weaknesses inside the
firm and opportunities
& threats in the
environment.
Substitute
Products
Rivalry
Among
Organizations
Potential
for Entry
Power of
Supplier
Power of
Buyer
1. Level of Rivalry in an industry: how intense is the
current competition with competitors?
Increased competition results in lower profits.
2. Potential for entry: how easy is it for new firms to enter
the industry?
Easy entry leads to lower prices and profits.
3. Power of Suppliers: If there are only a few suppliers of
important items, supply costs rise.
4. Power of Buyers: If there are only a few, large buyers,
they can bargain down prices.
5. Substitutes: More available substitutes tend to drive down
prices and profits.
*Concentrate in single business: McDonalds focuses in the fast food
business.
* Can become very strong, but can be risky.
*Diversification: Organization moves into new businesses and services.
Related diversification: firm diversifies in similar areas to build
upon existing divisions.
Synergy: two divisions work together to obtain more than the
sum of each separately.
Unrelated diversification: buy business in new areas.
* Build a portfolio of unrelated firms to reduce risk or trouble in
one industry. Very hard to manage.
*To what extent do we customize products and
marketing for different national conditions?
* Global strategy: a single, standard product and
marketing approach is used in all countries.
* Standardization provides for lower cost.
* Ignore national differences that others can address.
* Multidomestic strategy: products and marketing
are customized for each country of operation.
* Customization provides for higher costs.
* Embraces national differences and depends on
them for success.
*When the firm is doing well, managers can add more
value by producing its own inputs or distributing its
products.
* Backward vertical integration: the firm produces its
own inputs.
* McDonalds grows its own potatoes.
* Can lower the cost of supplies.
* Backward vertical integration: the firm distributes its
outputs or products.
* McDonalds owns the final restaurant.
* Firm can lower costs and ensure final quality.
Intermediate
Manufacturing
Raw
Materials
Assembly
Distribution Customer
Backward Forward
Low-Cost Differentiation
Focused
Low-Cost
Focused
Differentiated
Strategy
Many
Few
Low Cost
Differentiation
Numberof
marketsegments
* Low-cost: gain a competitive advantage by driving down
organizational costs.
* Managers manufacture at lower cost, reduce waste.
* Lower costs than competition mean lower prices.
* Differentiation: gain a competitive advantage by making
your products different from competitors.
* Differentiation must be valued by the customer.
* Successful differentiation allows you to charge more for a
product.
* Stuck in the middle: It is difficult to simultaneously
become differentiated and low cost.
*Firms also choose to serve the entire market or focus on
a few segments.
* Focused low-cost: try to serve one segment of the
market but be the lowest cost in that segment.
* Cott Company seeks to achieve this in large retail
chains.
* Focused differentiated: Firm again seeks to focus on
one market segment but is the most differentiated in
that segment.
* BMW provides a good example.
*Seeks to have each department add value to a good or
service.
*Marketing, service, production all add value to a
good or service.
* Value is added in two ways:
1. lower the operational costs of providing the
value in products.
2. add new value to the product by differentiating.
* Functional strategies must fit with business level
strategies.
1. Attain superior efficiency: the measure of
outputs for a given unit of input.
2. Attain superior quality: products that
reliably do the job they were designed for.
3. Attain superior innovation: new, novel
features about the product or process.
4. Attain superior responsiveness to
customers: Know the customer needs and fill
them.

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Principi del Management - Pianificazione e Strategia

  • 1. 7 The Manager as a Planner and Strategist
  • 2. Planning is the process used by managers to identify and select goals and courses of action for the organization. *The organizational plan that results from the planning process details the goals to be attained. *The pattern of decisions managers take to reach these goals is the organization’s strategy.
  • 3. Determining the Organization’s mission and goals (Define the business) Strategy formulation (Analyze current situation & develop strategies) Strategy Implementation (Allocate resources & responsibilities to achieve strategies)
  • 4. *Organizational mission: defined in the mission statement which is a broad declaration of the overriding purpose. * The mission statement identifies product, customers and how the firm differs from competitors. *Formulating strategy: managers analyze current situation and develop strategies needed to achieve the mission. *Implementing strategy: managers must decide how to allocate resources between groups to ensure the strategy is achieved.
  • 5. Strategy Implementation Corporate mission & goals Divisional goals Functional goals Corporate- level strategy Business- level strategy Functional- level strategy Design of Corporate Structure Control Design of Business-unit Structure Control Design of Functional Structure Control Goal Setting Strategy Formulation Corporate- level Plan Business- level Plan Functional level Plan
  • 7. *Corporate-level: decisions by top managers. * Considers on which businesses or markets to be in. * Provides a framework for all other planning. *Business-level: details divisional long-term goals and structure. * Identifies how this business meets corporate goals. * Shows how the business will compete in market. *Functional-level: actions taken by managers in departments of manufacturing, marketing, etc. * These plans state exactly how business-level strategies are accomplished.
  • 8. *Time horizon: refers to how far in the future the plan applies. * Long-term plans are usually 5 years or more. * Intermediate-term plans are 1 to 5 years. * Corporate and business level plans specify long and intermediate term. * Short-term plans are less than 1 year. * Functional plans focus on short to intermediate term. *Most firms have a rolling planning cycle to amend plans constantly.
  • 9. *Standing plans: for programmed decisions. * Managers develop policies, rules, and standard operating procedures (SOP). * Policies are general guides to action. * Rules are a specific guide to action. *Single-use plans: developed for a one-time, non programmed issue. Usually consist of programs and projects. * Programs: integrated plans achieving specific goals. * Project: specific action plans to complete programs.
  • 10. *Corporate level planning is done by top managers. * Also approve business and functional level plans. * Top managers should seek input on corporate level issues from all management levels. *Business and functional planning is done by divisional and functional managers. * Both management levels should also seek information from other levels. * Responsibility for specific planning may lie at a given level, but all managers should be involved.
  • 11. Planning determines where the organization is now and where it will be in the future. Good planning provides: * Participation: all managers are involved in setting future goals. * Sense of direction & purpose: Planning sets goals and strategies for all managers. * Coordination: Plans provide all parts of the firm with understanding about how their systems fit with the whole. * Control: Plans specify who is in charge of accomplishing a goal.
  • 12. *Scenario Planning: generates several forecasts of different future conditions and analyzes how to effectively respond to them. * Planning seeks to prepare for the future, but the future is unknown. * By generating multiple possible “futures” we can see how our plans might work in each. * Allows the firm to prepare for possible surprises. * Scenario planning is a learning tool to improve planning results.
  • 13. *This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer and the needs we can and should satisfy. * This also pinpoints competitors. B. Establishing major goals: states who will compete in the business. * Should stretch the organization to new heights. * Goals must also be realistic and have a time period in which they are achieved.
  • 14. We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to the information and services they want and need -- anytime, anywhere. AT & T
  • 15. *Managers analyze the current situation to develop strategies achieving the mission. *SWOT analysis: a planning to identify: * Organizational Strengths and Weaknesses. * Strengths: manufacturing ability, marketing skills. * Weaknesses: high labor turnover, weak financials. * Environmental Opportunities and Threats. * Opportunities: new markets. * Threats: economic recession, competitors
  • 16. Corporate-level strategy develop a plan of action maximizing long-run value Business-level strategy a plan of action to take advantage of opportunities and minimize threats Functional-level strategy a plan of action improving department’s ability to create value SWOT analysis identifies strengths & weaknesses inside the firm and opportunities & threats in the environment.
  • 18. 1. Level of Rivalry in an industry: how intense is the current competition with competitors? Increased competition results in lower profits. 2. Potential for entry: how easy is it for new firms to enter the industry? Easy entry leads to lower prices and profits. 3. Power of Suppliers: If there are only a few suppliers of important items, supply costs rise. 4. Power of Buyers: If there are only a few, large buyers, they can bargain down prices. 5. Substitutes: More available substitutes tend to drive down prices and profits.
  • 19. *Concentrate in single business: McDonalds focuses in the fast food business. * Can become very strong, but can be risky. *Diversification: Organization moves into new businesses and services. Related diversification: firm diversifies in similar areas to build upon existing divisions. Synergy: two divisions work together to obtain more than the sum of each separately. Unrelated diversification: buy business in new areas. * Build a portfolio of unrelated firms to reduce risk or trouble in one industry. Very hard to manage.
  • 20. *To what extent do we customize products and marketing for different national conditions? * Global strategy: a single, standard product and marketing approach is used in all countries. * Standardization provides for lower cost. * Ignore national differences that others can address. * Multidomestic strategy: products and marketing are customized for each country of operation. * Customization provides for higher costs. * Embraces national differences and depends on them for success.
  • 21. *When the firm is doing well, managers can add more value by producing its own inputs or distributing its products. * Backward vertical integration: the firm produces its own inputs. * McDonalds grows its own potatoes. * Can lower the cost of supplies. * Backward vertical integration: the firm distributes its outputs or products. * McDonalds owns the final restaurant. * Firm can lower costs and ensure final quality.
  • 24. * Low-cost: gain a competitive advantage by driving down organizational costs. * Managers manufacture at lower cost, reduce waste. * Lower costs than competition mean lower prices. * Differentiation: gain a competitive advantage by making your products different from competitors. * Differentiation must be valued by the customer. * Successful differentiation allows you to charge more for a product. * Stuck in the middle: It is difficult to simultaneously become differentiated and low cost.
  • 25. *Firms also choose to serve the entire market or focus on a few segments. * Focused low-cost: try to serve one segment of the market but be the lowest cost in that segment. * Cott Company seeks to achieve this in large retail chains. * Focused differentiated: Firm again seeks to focus on one market segment but is the most differentiated in that segment. * BMW provides a good example.
  • 26. *Seeks to have each department add value to a good or service. *Marketing, service, production all add value to a good or service. * Value is added in two ways: 1. lower the operational costs of providing the value in products. 2. add new value to the product by differentiating. * Functional strategies must fit with business level strategies.
  • 27. 1. Attain superior efficiency: the measure of outputs for a given unit of input. 2. Attain superior quality: products that reliably do the job they were designed for. 3. Attain superior innovation: new, novel features about the product or process. 4. Attain superior responsiveness to customers: Know the customer needs and fill them.