Chpt07.pptVIP

Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 2000 7-* The Manager as a Planner and Strategist 7 The Planning Process 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. Three Stages of the Planning Process 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 Planning Process Stages Organizational mission: defined in the mission statement which is a broad declaration of the overriding purpose. The mission statement identifies product, customers and how the firm differs from competitors. Formulating strategy: managers analyze current situation and develop strategies needed to achieve the mission. Implementing strategy: managers must decide how to allocate resources between groups to ensure the strategy is achieved. Levels of Planning Strategy Implementation Corporate mission goals Divisional goals Functional goals Corporate- level strategy Business- level strategy Functional- level strategy Design of Corporate Structure Control Design of Business-unit Structure Control Design of Functional Structure Control Goal Setting Strategy Formulation Corporate- level Plan Business- level Plan Functional level Plan Figure 7.2 Planning at General Electric Corporate Level CEO Corporate Office Business Level GE Aircraft GE Lighting GE Motors GE Plastics NBC Functional Level Manufacturing Marketing Accounting R D Figure 7.3 Planning Levels Corporate-level: decisions by top managers. Considers on which businesses or markets to be in. Provides a framework for all other planning. Business-level: details divisional long-term goals and structure