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Learning Outcomes
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Planning
Planning Dimensions
The level of management developing the plan The type of plan (strategic or operational) The scope of the plan (broad or narrow) The time horizon of the plan (short- or long-term) The plans repetitiveness (standing or single-use)
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Planning Dimensions
Exhibit 51
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Types of Plans
Standing Plans
Policies, procedures, and rules developed for handling repetitive situations. Policies
General guidelines to be followed when making decisions.
Procedures
A sequence of actions to be followed in order to achieve an objective.
Rules
A statement of exactly what should or should not be done.
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Program development
Set project objectives. Break the project down into a sequence of steps. Assign responsibility for each step. Establish starting and ending times. Determine the resources needed for each step.
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Exhibit 52
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511
Operational Planning
The process of setting short-range objectives and determining in advance how they will be accomplished.
Strategy
A plan for pursuing the mission and achieving objectives.
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 512
Exhibit 53
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 513
Strategic Planning
Corporate-Level Strategy
The plan for managing multiple lines of businesses
Business-Level Strategy
The plan for managing one line of business
Functional-Level Strategy
The plan for managing one area of the business
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Exhibit 54
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Exhibit 5
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2. SWOT analysis.
5. Determination of the strategic issues and problems that need to be addressed through strategic processes.
Exhibit 56
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 518
Exhibit 57
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 519
Exhibit 58
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Competitive Advantage
Core Competency
A functional capability (strength) that the firm does well and one that creates a competitive advantage for the firm.
Benchmarking
The process of comparing an organizations products or services and processes with those of other companies.
Environmental Scanning
Searching the external environment for opportunities and threats.
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Setting Objectives
Objectives
State what is to be accomplished in singular, specific, and measurable terms with a target date.
Goals
Are general targets to be accomplished that are translated into actionable objectives.
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Model 51
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Exhibit 59
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Corporate-Level Strategy
Grand Strategies
Growth Stability Turnaround and retrenchment Combination
Growth Strategies
Concentration Backward and forward integration Related and Unrelated diversification
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Exhibit 510
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Exhibit 511
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Exhibit 512a
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Exhibit 512b
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Business-Level Strategies
Adaptive Strategies
Prospecting
Aggressively offering new products and/or entering new markets.
Defending
Staying with the present product line and markets, and maintaining or increasing customers.
Analyzing
A midrange approach between prospecting and defending, moving cautiously into new markets.
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Exhibit 513
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 532
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Competitive Strategies
Differentiation
Competing on the basis of features that distinguish one firms products or services from those of another.
Cost Leadership
The firm with the lowest total overall costs has a competitive advantage in price-sensitive markets.
Focus
Concentrating competitive efforts on a particular market segment, product line, or buyer group.
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Exhibit 514
Copyright 2003 by South-Western/Thomson Learning. All rights reserved. 535
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Operations
Which processing systems to use to convert inputs into outputs with quality and efficiency?
Human Resources
How to recruit, select, train, evaluate, and compensate the workforce?
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