8f14e4.Planning and Strategic Management_2

7/29/2019 8f14e4.Planning and Strategic Management_2

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Planning and Strategic Management


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Planning


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- All planning occurs within an environmentalcontext

-If managers do not understand this context ,they are unable to develop effective plans

-Basing on understanding this context ,manager establish organizations mission


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-The mission outlines the organizations purposes ,premises, values and directions

-The mission helps determines Strategic goals and

plans

-Strategic goals and plans let developing tactical goalsand plans

-Tactical goals and plans determine operational plans


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I/ Organizational Goals:

- Provide guidance and a unified direction for people inthe organization: everyone can know to where theorganization is going .

- Goal-setting promotes good planning which facilitatesfuture goal setting

- Serve as a source of motivation for employees of theorganization

- Provide an effective mechanism for evaluation and

control


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* Kinds of Goals

There is four basic level of goals :

- 1- Mission

- 2- Strategic goal

- 3- Tactical goal

- 4- Operational goal


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1- Mission:

Is a statement of its fundamental , unique purpose thatdifferentiate it from other firms and identifies the scopeof the businesss operations in product and market terms (E.g: being the first purveyor of an enzyme in the world)

2- Strategic goals:

- Are set by and for top management of organization.

-Focused on broad and general issues

( E.g: opening 1000 Laboratories in the world)


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3- Tactical goals:

- Are set by and for middle managers.

-Focused on how to operationalize actions necessary to

achieve the strategic goals

-(E.g: working on the distribution of homologues laboratoryin different country and possibilities of cooperation)


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4- Operational goals ( or objectives)

- Are set by and for low-level managers

- To Precise short-term objectives associated with the

tactical goals.

-(E.g: To precise the number of laboratory to be opened byyear )


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II/ Organizational Plans:

Organizations establish many different kinds of plans:

-Strategic plans

-Tactical plans

- Operational plans


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1- Strategic Plans:

-Set by the Board of directors and top management

- Outline :- Decisions of resources allocations

-Priorities-Action steps necessary to reach strategic goals

-Have extended time horizon

- Adress questions of -Scope-Resource deployment-Competitive advantage


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2- Tactical Plans

-Set for middle management

-Are developed to achieve tactical goals

- Have short time horizon

- Have specific and concrete focus

-Are concerned more with actually getting things donethan with deciding what to do


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3- Operational Plan

-Set by middle and lower level managers

-They carry out tactical plans to achieve operationalgoals

-Have short-term focus

-Are narrow in scope : concern small activities


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The Nature of Strategic Management


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STRATEGY :

-Is a comprehensive plan for accomplishing anorganizations goals

-Strategic managements: a comprehensive and ongoingmanagement process aimed at formulating andimplementing effective strategies

-Effective strategies: That promote a superior alignmentbetween the organization and its environment


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The components of strategy:

-A well conceived strategy address three areas:

- 1- Distinctive competence- 2- Scope- 3- Resource deployment


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-1- Distinctive Competence :

Something that the organization does exceptionallywell

-E.g:-Speed in moving inventory-Electronically transmits orders to supplies in othercountries


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-2- The Scope: The scope of a strategy specifies the

areas of competitions

- E.g:

-With which laboratory we can compete

- In which country we can compete


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- Resource deployment : Concern how to distribute itsresources across the areas in which it competes

E.g:

- How many Laboratories by Country-Area or regions of installing laboratories


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Types of strategic Alternatives :

Most business today develop strategies at twodistinct levels:

-1. Business level strategy: A strategic alternatives toconduct business in a particular operation ( industry ,market)

- 2. Corporate-level-strategy : a strategic alternatives tomanage many operations simultaneously .

Documents

8f14e4.Planning and Strategic Management_2