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PLANNING &
STRATEGIC
MANAGEMENT
Planning
The process of establishing goals & a suitable
Purposes of planning
1) Provides direction
2) Reduces uncertainty
3) Minimizes waste & redundancy
4) Establish the goals/standards used in
controlling.
Importance of goals
1) Goals provide a sense of direction.
2) Goals focus our efforts
3) Goals guide our plans & decisions
4) Goals help us evaluate our progress
The Hierarchy of
Organizational Plans
Strategic Plans Plans designed by high-
h
Mission statement A broad goal based
on managers assumptions about the
organizations purpose, competencies, &
place in the world.
Strategic Management
Process
Strategic
Planning
Strategy
Implementation
Corporate Strategy
Strategy formulated by top management to
business.
It is an organizational strategy focused on how the
organization will compete in each of its businesses &
how it can gain competitive advantage in each of its
businesses.
Competitive advantage What sets an
organization apart, i.e., its distinctive edge which can
come from its core competencies.
Core Competencies: Doing something that others
cannot do or doing it better than others. It can also
mean having something (resources) that its
competitors do not have.
share.
Cash Cow: Low market growth rate & high
market share.
Dog: Low market growth rate & low market
share.