Planning and Strategic Management

Planning

- All planning occurs within an environmental context

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

-Basing on understanding this context , manager establish organization’s mission

-The mission outlines the organization’s purposes , premises, values and directions

-The mission helps determines Strategic goals and plans

-Strategic goals and plans let developing tactical goals and plans

-Tactical goals and plans determine operational plans

I/ Organizational Goals:

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

- Goal-setting promotes good planning which facilitates future goal setting

- Serve as a source of motivation for employees of the organization

- Provide an effective mechanism for evaluation and control

* Kinds of Goals

There is four basic level of goals :

- 1- Mission

- 2- Strategic goal

- 3- Tactical goal

- 4- Operational goal

1- Mission:

Is a statement of its fundamental , unique purpose that differentiate it from other firms and identifies the scope of the business’s 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)

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 laboratory in different country and possibilities of cooperation)

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 by year )

II/ Organizational Plans:

Organizations establish many different kinds of plans:

-Strategic plans

-Tactical plans

- Operational plans

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

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 done than with deciding what to do

3- Operational Plan

-Set by middle and lower –level managers

-They carry out tactical plans to achieve operational goals

-Have short-term focus

-Are narrow in scope : concern small activities

The Nature of Strategic Management

STRATEGY :

-Is a comprehensive plan for accomplishing an organization’s goals

-Strategic managements: a comprehensive and ongoing management process aimed at formulating and implementing effective strategies

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

The components of strategy:

-A well conceived strategy address three areas:

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

-1- Distinctive Competence :

Something that the organization does exceptionally well

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

-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

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

E.g:

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

Types of strategic Alternatives :

Most business today develop strategies at two distinct levels:

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

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