En 05

Slide1: 

5 The Manager as a Planner and Strategist 1.Importance of Plan 2.Types of Plan 3.Plan Process 4. Make Plan in Three Levels

Importance of Plan: 

Importance of Plan Planning determines where the organization is now and where it will be in the future. Good planning provides: Participation Sense of direction and purpose Coordination Control

Types of Plan: 

Types of Plan Time horizon：refers to how far in the future the plan applies. Specificity horizon Frequency of use horizon Breadth horizon

Specificity horizon: 

Specificity horizon Directional plan:flexible plans that set out general guidelines. Specific plan:plans that are clearly defined and leave no room for interpretation

Specificity horizon: 

Specificity horizon

Time horizon: 

Time horizon Long-term plans are usually 5 years or more. Intermediate-term plans are 1 to 5 years. Short-term plans are less than 1 year. Most firms have a rolling planning cycle to amend plans constantly.（滚动计划）

Program Horizon : 

Program Horizon Standing plans: for programmed decisions. Managers develop policies, rules, and standard operating procedures (SOP). Single-use plans: developed for a one-time, non-programmed issue.

Level Horizon: 

Level Horizon Corporate-level: decisions by top managers. Business-level: details divisional long-term goals and structure. Functional-level: actions taken by managers in departments of manufacturing, marketing, etc.

Planning at General Electric: 

Planning at General Electric CEO Corporate Office GE Aircraft GE Lighting GE Motors GE Plastics NBC Manufacturing Marketing Accounting R & D Figure 7.3

Three Stages of the Planning Process: 

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

Determining Mission and Goals: 

Determining Mission and Goals This is the first step of the planning process and is accomplished by: 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.

Mission Statements: 

Mission Statements Company Compaq Mission Statement Compaq, along with our partners, will deliver compelling products and services of the highest quality that will transform computing into an intuitive experience that extends human capability on all planes -- communication, education, work, and play. Figure 7.4

Mission Statements: 

Mission Statements Company AT&T Mission Statement We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to the information and services they want and need -- anytime, anywhere. Figure 7.4

Strategy Formulation: 

Strategy Formulation Managers analyze the current situation to develop strategies achieving the mission. Formulating strategy: managers analyze current situation and develop strategies needed to achieve the mission. SWOT analysis

SWOT analysis: 

SWOT analysis: a planning to identify: Organizational Strengths and Weaknesses. Strengths: manufacturing ability, marketing skills. Weaknesses: high labor turnover, weak financials. Environmental Opportunities and Threats. Opportunities: new markets. Threats: economic recession, competitors SWOT analysis

Slide16: 

Hertz Rent-A-Car Avis Rent-A-Car National Rent-A-Car Budget Rent-A-Car Alamo Rent-A-Car

Slide17: 

在汽车比较普及，航空业也比较发达的国家，有一种机场租车业务。二十世纪八十年代，这一行业有的四大巨头——赫茨公司（Hertz）、阿维斯公司（Avis）、国民公司（National）和预算公司（Budget）。你如何在这样的环境中立足？ 阿拉莫租车公司（Alamo Rent-A-Car）的主席麦克尔.伊根在20年的时间里成为了一家5亿美元的公司，净利润额在全行业名利列第二！仅次于阿维斯公司. 伊根的战略是集中与低价格与低成本、高营业额的经营定位，以及租车给那些精打细算的顾客。 低价格——利用广告宣传每日的租价低于其竞争对手20%，并不对行车里程额外收费。例如：周日在洛杉矶租阿拉莫公司的一辆雪弗莱轿车，日租金38美元 且不收里程费。而在赫茨公司租用同一牌号的车，每天租金51.93 美元，且要提前3天预定，此外，超过100英里要每英里加收32美分。 低成本——将营业场所设在高营业量和租金便宜的地点。公司在美国和英国只有105处营业场所，而赫茨公司却有5400处，但是阿拉莫公司的所有以营业场所都设在客流量最大的机场。所以尽管赫茨公司的营业场所数量是阿拉莫公司的50倍。但其出租轿车的数量仅为阿拉莫公司的4倍。此外，阿拉莫公司还将其管理费用的支出控制在低水平上，将大多数服务台设在机场大厅外面的临近地点, 从而避免机场大厅内天文数字般的租金。 伊根的战略还有一个关键要素是他选择的目标市场。在赫茨公司和阿维斯公司耗费巨资为争夺《幸福》杂志排出的100位总经理打得不可开交时，自己却选择了度假旅游者的市场，作为他的细分市场，开始寻求精打细算的生意旅行者。

Implementing strategy: 

Implementing strategy Implementing strategy: managers must decide how to allocate resources between groups to ensure the strategy is achieved.

Levels of Planning: 

Levels of Planning Figure 7.2

Make Plan in Three Levels : 

Make Plan in Three Levels Corporate-Level Strategies ： Considers on which businesses or markets to be in. Provides a framework for all other planning. Business-level Strategies ： These plans state exactly how business-level strategies are accomplished Functional-level Strategies Identifies how this business meets corporate goals. Shows how the business will compete in market.

Corporate-Level Strategies : 

Corporate-Level Strategies Corporate-Level Strategies will tell us what business or businesses do we want to be in . Grand strategies framework : Corporate portfolio matrix: strategy tool to guide resource allocation decisions based on market share and growth .

Corporate portfolio matrix: 

Corporate portfolio matrix

Corporate portfolio matrix: 

Corporate portfolio matrix Cash cows:products that demonstrate low growth but have a high market share. Stars:product that demonstrate high growth and have high market share. Question marks :products that demonstrate high growth but have low market share. Dogs:products that demonstrate low growth and have low market share.

Diversification: 

Diversification: Organization moves into new businesses and services. Related diversification: firm diversifies in similar areas to build upon existing divisions. Synergy: two divisions work together to obtain more than the sum of each separately. Unrelated diversification: buy business in new areas. Build a portfolio of unrelated firms to reduce risk or trouble in one industry. Very hard to manage. Diversification

Grand strategy : 

Grand strategy Stability strategy :characterized by an absence of significant change. Growth strategy: seeks to increase the level of the organization`s operations ,including increasing revenues ,employees and market share. Retrenchment strategy: seeks to reduce the size or diversity of an organization`s operations. Combination strategy: pursues two or more of the following strategies , like stability, growth, retrenchment simultaneously

Internationalize : 

Internationalize To what extent do we customize products and marketing for different national conditions? Global strategy: a single, standard product and marketing approach is used in all countries. Multi-domestic strategy: products and marketing are customized for each country of operation.

Integration : 

Integration When the firm is doing well, managers can add more value by producing its own inputs or distributing its products. Backward vertical integration: the firm produces its own inputs. Forward vertical integration: the firm distributes its own outputs or products.

Vertical Value Chain: 

Vertical Value Chain Figure 7.6

Business-level Strategies: 

Business-level Strategies Adaptive strategy Competitive strategy

Adaptive strategy: 

Adaptive strategy Defender :seeks stability by producing only a limited set of products directed at a narrow segment of the total potential market. Prospector : seeks innovation by finding and exploiting new product and market opportunities. Analyzer : seeks to minimize risk by following competitive innovations only after they have proven successful. Reactors :that characterizes inconsistent and unstable decision patterns.

Competitive strategy : 

Competitive strategy Low-Cost Differentiation Focused Low-Cost Focused Differentiated Strategy Many Few Low Cost Differentiation Number of market segments Table 7.2 (Stuck in the middle)

The Five Forces Model: 

The Five Forces Model Substitute Products Rivalry Among Organizations Potential for Entry Power of Supplier Power of Buyer

Low-cost: 

Low-cost Low-cost: gain a competitive advantage by driving down organizational costs in the industry. Managers manufacture at lower cost by innovation ,cheap materials , operating technology. Lower costs than competition mean lower prices.

Differentiation: 

Differentiation Differentiation: gain a competitive advantage by making your products different from competitors in the industry . Differentiation must be valued by the customer. Successful differentiation allows you to charge more for a product.

Stuck in the middle: 

Stuck in the middle Stuck in the middle: It is difficult to simultaneously become differentiated and low cost.

Focused low-cost: 

Focused low-cost Focused low-cost: try to serve one segment of the market but be the lowest cost in that segment. Firms also choose to serve the entire market or focus on a few segments.

Focused differentiated: 

Focused differentiated Focused differentiated: Firm again seeks to focus on one market segment but is the most differentiated in that segment. BMW provides a good example.

Functional-level Strategies: 

Functional-level Strategies Seeks to have each department add value to a good or service. Marketing, service, production all add value to a good or service.

Goals for successful functional strategies: : 

Goals for successful functional strategies: 1. Attain superior efficiency: the measure of outputs for a given unit of input. 2. Attain superior quality: products that reliably do the job they were designed for. 3. Attain superior innovation: new, novel features about the product or process. 4. Attain superior responsiveness to customers: Know the customer needs and fill them.