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FundamentalsofManagementTenthEditionChapter5Foundations
ofPlanningCopyright?2017,2015,2013PearsonEducation,Inc.AllRightsReserved.
LearningObjectives5.1Discussthenatureandpurposesofplanning.5.2Explainwhatmanagersdointhestrategicmanagementprocess.5.3Compareandcontrastapproachestogoalsettingandplanning.5.4Discusscontemporaryissuesinplanning.
LearningObjective5.1Discussthenatureandpurposesofplanning.
WhatIsPlanning?Planning:Theprimarymanagementfunction.
Exhibit5-1ReasonsforPlanning
CriticismsofFormalPlanningMaycreaterigidityCan’treplaceintuitionandcreativityFocusesattentionontoday’ssuccess,nottomorrow’ssurvivalReinforcessuccess,whichmayleadtofailure
FormalPlanningandOrganizationalPerformanceDoesitpaytoplan?HigherprofitsHigherreturnonassetsImprovedqualityofplanningAppropriateimplementation
LearningObjective5.2Explainwhatmanagersdointhestrategicmanagementprocess.
StrategicManagementWhatmanagersdotodevelopanorganization’sstrategies
TheImportanceofStrategicManagementIthasapositiveimpactonorganizationalperformanceItpreparesmanagerstocopewithchangingsituationsItguidesmanagerstoexaminerelevantfactorsinplanningfutureaction
Exhibit5-2StepsintheStrategicManagementProcess
Exhibit5-3Step1:IdentifyMission,GoalsandStrategiesSource:Robbins,StephenP.,Coulter,Mary,Management,13thEd.,?2016,p.238.ReprintedandelectronicallyreproducedbypermissionofPearsonEducation,Inc.,NewYork,NY.
ExternalandInternalAnalysesStep2:ExternalAnalysisCompetitionComponentsofenvironmentThreatsandopportunitiesStep3:InternalAnalysisResourcesCapabilitiesCorecompetenciesOrganizationalstrengthsandweaknesses
Formulating,Implementing,andEvaluatingResultsStep4:FormulateStrategiesCorporateBusinessFunctionalStep5:ImplementStrategiesStep6:EvaluateResultsHoweffectivehavestrategiesbeen?Whatadjustmentsare
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