Chapter IV Strategic Planning and Organizational Objectives 1.
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Transcript of Chapter IV Strategic Planning and Organizational Objectives 1.
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Chapter IV
Strategic Planning and Organizational Objectives
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When you finish this chapter, you should be able to:Nature of strategic planningLevels of strategyImportance of strategy planSteps in the strategic planning processDefining the mission of the organizationDeveloping the organizational objectivesAssessing organizational resources, risks, and
opportunitiesFormulating strategyImplementing strategy
Learning Objectives
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I. Nature of strategic planning
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.
1.1 Levels of strategy
Strategy can be formulated on three different levels:
-corporate level
-business unit level
-functional or departmental level.
1.2 The importance of strategy plan:
-We all need to know where we are going
-Plan is the compass
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II. Steps in the strategic planning process
Steps in the strategic planning process:
Mission
Objective
Assessing: Resource, Risks, and Opportunities
Formulating Strategy
Implementing Strategy
Monitoring & Adapting Strategic Plans
Feed
back
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The mission statement should be a clear and succinct representation of the enterprise's purpose for existence.
2.1 Defining the mission of organization
What do we do business?Who is our customers?What should we provide goods/services?
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Objectives give the business a clearly defined target.
2.2 Developing the organizational objectives:
Create the road or approach
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2.3 Assessing organizational resources, risks, and opportunities
Manager must analyze SWOT
And compare to other organizations
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Strengths-Profits-Financial Resources-Honest Customers-Modern Physic Equipments-Patent
Opportunities-Increasing of demands-Entrance new markets-Buy technologic company-Increasing of products
Treats-Changes of customers’ demands -Government’s policies
Weaknesses-Small line-products-Lack of management-Poor finance-Poor market-High cost of labor
Problems
Ability
Be able risksForce
SWOT Analysis
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2.4 Formulating Strategy:
Environmental Strategies: (Focusing on resources related to environment)Strategic Model: Mr. Miles and Mr. Snow discovered 4 strategies: a. Prospector: new opportunity, & high risk >new
products>new marketsb. Defender: marketing stability, no changingc. Analyzer: aggregating prospector & defenderd. Reactor: always no show clear plan, have trends to exchange of opportunity.
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Strategic Window:Duration of limited timeMain tasks of markets appropriated to ability of companyMonitoring external environment
2.4 Formulating Strategy:
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Strategic Business Unit (SBU): is understood as a business unit within the overall corporate identity which is distinguishable from other business because it serves a defined external market where management can conduct strategic planning in relation to products and markets.
2.4 Formulating Strategy:
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The selected strategy is implemented by means of programs, budgets, and procedures. Implementation involves organization of the firm's resources and motivation of the staff to achieve objectives.
2.5 Implementing Strategy:
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National HIV/AIDS Strategy Implementation
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Evaluation and control consists of the following steps:Define parameters to be measured
Define target values for those parameters
Perform measurementsCompare measured results to the pre-defined standard
Make necessary changes
2.6 Monitoring and Adapting Strategic Plans:
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