DECISIONMAKING PLANNING

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DECISION-MAKING PLANNING Strategic Management
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CASE STUDY

• Personal
• Planning Techniques

From last week, write a strategic plan for your
life.
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Project Planning Control Models

• Gantt Charts
• Program Evaluation and Review Technique (PERT)
• Clearly defined project activities
• Sequencing requirements
• Sequence relationships diagram
• Time estimates (formula)
• Calculate critical path
• Calculate actual activity times

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Management by Objectives (MBO)

• Process by which specific goals are set
  collaboratively for the whole organisation and
  every unit and individual within it
• Goals are then used for planning, managing,
  organisational activities and assessing and
  rewarding contributions

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Management by Objectives (MBO)

• Steps in the MBO process
• Develop overall organisational goals
• Establish specific goals for depts, SBUs and
  individuals
• Formulate action plans
• Implement and maintain self-control
• Give latitude in carrying out activities
• Review progress periodically
• Appraise performance

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Strategic Management

• The Process
• Strategic formulation
• Strategy implementation

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Levels of Strategy(refer to p. 207)

• Corporate-level strategy
• Addresses the businesses an organisation will
  operate
• How strategies of those businesses will be
  coordinated
• How resources will be allocated
• Typically developed by top management
• Business-level strategy (SBUs)
• How best to compete in particular business while
  supporting corporate strategy
• Functional level strategy
• Action plans for functional area to support the
  business-level strategy

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Formulating Corporate-Level Strategy

• Grand Strategy
• Growth
• Concentration
• Vertical integration
• Diversification
• Stability
• Defensive
• Harvest
• Turnaround
• Divestiture
• Bankruptcy
• Liquidation

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Portfolio Strategy Approaches

• BCG growth-share mix
• Product/Market evolution matrix

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Formulating Business-Level Strategy

• Porters Competitive Strategies
• Cost Leadership
• Differentiation Strategy
• Focus Strategy

Formulating Functional -Level Strategy
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Strategy Implementation

• Carry out strategic plans
• Technology
• Human resources
• Reward systems
• Decision processes
• Structure
• Maintain strategic control
• Strategic control systems
• Adjustments as necessary