The

Manager
as a
Planner
and
Strategist
chapter eight

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Planning and Strategy

Planning
Identifying and selecting appropriate
goals and courses of action for an
organization.
The organizational plan that results from the
planning process details the goals and
specifies how managers will attain those
goals.

8-2

Planning and Strategy

Strategy
A cluster of
decisions about
what goals to
pursue, what
actions to take,
and how to use
resources to
achieve goals.

8-3

Planning and Strategy

Mission Statement
A broad declaration of an organizations
purpose that identifies the
organizations products and customers
and distinguishes the organization from
its competitors.

8-4

Three Steps in Planning

Figure 8.1

8-5

Why Planning is Important

1. Necessary to give the organization a sense
of direction and purpose
2. Useful way of getting managers to
participate in decision making about the
appropriate goals and strategies for an
organization
3. Helps coordinate managers of the different
functions and divisions of an organization
4. Can be used as a device for controlling
managers
8-6

Levels of Planning at
General Electric

Figure 8.2
8-7

Levels and Types of

Planning

Figure 8.3

8-8

Three Mission Statements

Figure 8.4

8-9

Questions for SWOT

Analysis

8-10

Planning and Strategy

Formulation

Figure 8.5
8-11

The Five Forces

Level of rivalry in an industry

Potential for new entrants
Power of large suppliers
Power of large customers
Threat of substitute products

8-12

Formulating Business-Level
Strategies
Low-Cost
Strategy
Driving the
organizations
total costs down
below the total
costs of rivals.

Differentiation
Distinguishing an
organizations
products from the
products of
competitors on
dimensions such
as product design,
quality, or aftersales service.
8-13

Principal Corporate-Level
Strategies

8-14

Four Ways to Expand

Internationally

Figure 8.7
8-15