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)
Figure 7.1

4.  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.

5. 8-
5
 Mission Statement
◦A broad declaration of an
organization’s overriding
purpose
◦Identifies what is unique or
important about its products
◦Seeks to distinguish or
differentiate the organization
from its competitors

6. 6
 The mission statement is the reason the
organization exists
◦ Top of the goal hierarchy
◦ Describes the values, aspirations and reason for
being
◦ A well-defined mission is the basis for all other
goals
 Mission statements outline the stated
purpose and values to stakeholders

7. 7
 Strategic Goals – official goals, broad
statements about the organization
◦ Define the action steps the company intends to attain
◦ The blueprint that defines activities
 Tactical Goals – help execute major strategic
plans
◦ Specific part of the company’s strategy
◦ Plans of the divisions and departments
 Operational Goals – results expected from
departments, work groups, and individuals
◦ Lower levels of the organization
◦ Specific action steps

8. 8