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Planning, Strategy, and Competitive Advantage

‘There is nothing more wasteful than becoming highly efficient at doing the wrong thing.’ Peter Drucker

 

Planning- Identifying and selecting appropriate goals and courses of action for an organization. Planning is necessary to give the organization a sense of direction and purpose. Can be used to coordinate and control the managers.

Strategy- decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals

 

Mission Statement- declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors (usually very generally written, but with a clear purpose)

 

Steps of planning:

  1. Determining the mission and goals
  2. Formulating strategy
  3. Implementing strategy –allocating resources and responsibilities

Mission Purpose, premises, values, directions
Strategic Goals
Strategic Plans
Tactical Goals
Operational Goals
Tactical Plans
Operational Plans

 


Strategy is the most general. Goal has to be evaluated – whether we are achieving it or not. It HAS to be concrete, measurable.

 

Purpose of plans goals:

-Plans and goals are neccesary for company to function OR

-Developing them is more important than plans and goals themselves

-they guide the organization

-you can’t plan without goals- good plan needs good goals

-is motivating

-good point of refference

 

Strategic goals- goals set by and for the top management.

 

OPERAT. GOALS
OPERAT. GOALS
OPERAT. GOALS
TACTICAL GOALS
TACTICAL GOALS
TACTICAL GOALS
STRATEGIC GOALS
STRATEGIC GOALS
STRATEGIC GOALS
INTERACTIVE
BOTTOM-UP
TOP-DOWN
MISSION
MISSION
Top establishes MISSION
SETTING GOALS

 

TOP-DOWN – top management dictates what to do – strategy provides

BOTTOM-UP- strategy is being updated

INTERACTIVE- everyone is equal, common effort (THE BEST)

 

Strategic planing is a self-containing process (you also plan a strategy for planning a strategy)

 

STRATEGIC MANAGEMENT (!) – management adopting strategic decisions (long term, agressive resource usage)

 

EFFECTIVE strategies are strongly bound to nature of the environment and mean to improve the average: net profit, market share or management philosophy (planning efficiency)

 

COMPETITIVE ADVANTAGE

Distinctive competence- something you’re the best at

You CAN’T be the best in all aspects

 

Scope- range of competitive markets – sometimes it’s very difficult to find the real competition – products: how many? –geography- which markets to be present on?

Resource deployment- distribution of resources across the markets

 

 

IGOR ANSOFF-

MARKET PENETRATION- Introducing existing product to an existing market

MARKET DEVELOPMENT- introducing existing product to a new market



PRODUCT DEVELOPMENT- intr. new product to an existing market

INTEGRATION- intr. new product to a new market

 

Horizontal integration enables producing new products off same resources (bikes from BMW leftovers :D) or makes you less voulnerable to economic cycles (Chrystler- hamburgers)

Resource deployment- KNOWLEDGE- accummulate, but can’t ‘activate’ it, ACCESS to resources

 

Corporate strategy- choosing of markets we wanna compete on, product design

Business strategy- core product, target, ways of distribution

Functional strategy- HR, production, distribution.

INTERNAL RNAL
W
S

SWOT analysis – easier to plan the best strategy

Strengths (e.g., superior marketing skills)

Weaknesses (e.g., outdated production facilities)

EXTERNAL RNAL
T
O
Opportunities (e.g., entry into new related markets).

Threats (increased competition)

^ CONCLUSIONS are the most tricky part, for what seems to be a threat might in fact be a great opportunity.

 


Date: 2015-02-16; view: 625


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