The document discusses strategic planning and management. It outlines the typical planning cycle which includes analyzing the current situation, forecasting future trends, setting objectives, developing an action plan, implementing the plan, monitoring progress, and starting a new cycle. It also describes the different levels of management - operational, tactical, and strategic - and their respective information needs and decision-making responsibilities.

2. The Planning Cycle Analysis of current Situation Where are we now? (Base Line Data) Forecasting Where is the world moving to? Develop Objectives Where do we want to be within a given period of time? Action Plan (Work Plan) What must I do to get where I want to go? Implementation of Work Plan Do it! Monitor Progress by comparing current data with Baseline Data Taking into consideration policies, strategies and national development plans Start of a new planning cycle Detect weaknesses, strengths, opportunities and risks

3. The activities and information requirements of the three major levels of management Regular internal reports Detailed transaction reports Procedures manuals Current historical data Programmed decisions Production scheduling Inventory control Credit management Directions Commands Actions and other operational decisions Direct the utilization of resources and the performance of tasks in conformance with established rules Operational Management Forecasts and historical data Regular Internal Reports Exception reports Simulations Inquiries Personnel practices Capital Budgeting Marketing Mix Budgets Procedures Rules and other tactical decisions Allocate assigned resources to specific tasks Make rules Measure performance Exert control Tactical Management Forecasts Simulations Inquiries External Reports One-time reports Condensed internal reports Policy on industry and product diversification Social responsibility policy Major capital expenditure policy Goals and strategic objectives Company policies Long range plans and other strategic decisions Long range planning and goal setting Determine organizational resource requirements and allocations Strategic Management Information Requirements Activity Examples Activity Results Primary Activities Management Levels

7. Periodic Scheduled Reports Exception Reports Demand Reports and Responses Drill-down Reports Major Management Information Systems Reports

8. Sensitivity Analysis What-If Analysis Goal-Seeking Analysis Optimization Analysis Important Decision Support Systems Analytical Models

13. Decision Support Framework

16. ISs to support decisions Information produced by analytical modeling of business data Information produced by extraction and manipulation of business data Information processing methodology Ad hoc, flexible, and adaptable format Prespecified, fixed format Information format Interactive inquiries and responses Periodic, exception, demand, and push reports and responses Information form and frequency Provide information and techniques to analyze specific problems Provide information about the performance of the organization Decision support provided Decision Support Systems Management Information Systems

17. Executive Support Systems (ESS) in Perspective Tailored to individual executives Easy to use- colour and graphic Drill down capabilities Support need for external data Can help when uncertainty is high Future-oriented Linked to value-added processes

18. Managerial Decisions in the Control Process Exhibit 18.7

23. Figure 9.3 An example of a mission statement, strategic goals, and tactical objectives for an in-line skate manufacturer

26. Table 1.1 A Categorization of Decision Characteristics Category I Decisions Category II Decisions Classifications Programmable; routine; Nonprogrammable; unique; generic; computational; judgmental; creative; negotiated; compromise adaptive; innovative; inspirational Structure Procedural; predictable; Novel, unstructured, certainty regarding consequential, elusive, and cause/effect relationships; complex; uncertain cause/ recurring; within existing effect relationships; non- technologies; well-defined recurring; information information channels; channels undefined, incom- definite decision criteria; plete information; decision outcome preferences may criteria may be unknown; be certain or uncertain outcome preferences may be certain or uncertain Strategy Reliance upon rules and Reliance on judgment, principles; habitual intuition, and creativity; reactions; prefabricated individual processing; response; uniform heuristic problem-solving processing; computational techniques; rules of thumb; techniques; accepted general problem-solving methods for handling processes

28. Strategic Planning = Align organization with its environment to promote stability and survival Traditional Planning = Set goals then develop steps to achieve those goals