College of Business

1
Functions of Planning
1. Adapt to Uncertainty and Change 2. Focus
Attention on Objectives 3. Increase
Coordination 4. Facilitates Control
2
Who Implem. Time
Types 3 Phases does it level
span of plans
Strategic Top Total
5 yrs. Mission Planning
Org./ Corp.
Obj. SBU
Strategies -Grand
-Global -Corporate Level
-Business Level Intermediate Middle
Functional 1-3/5yrs Functional
Level Tactical Areas
Strategies
Planning Objectives
Policies/Programs Operational Lower
Department lt1yr. Dept.
Objectives Planning
Level Procedures, Rules,
Budgets
3
Types of Plans
Strategies Tactics Policies Procedures Rules Budge
ts Programs
4
The Strategic Planning Process
1. Evaluate Current Factors -Mission -Objectiv
es -Managerial Aspirations/Values Domain
Defender Enthusiastic Prospector Anxious
Analyzer Reluctant Reactor
5
The Strategic Planning Process continued
2. Conduct a SWOT Analysis -Environmental
Analysis -Internal Resource Analysis
6
SWOT Analysis
Numerous Opportunities
II I
Critical High Internal
Internal Weaknesses Strengths
III IV
Major Environmental Threats
7
3. Develop Strategic Alternatives
Opportunities Threats
Concentration Market Development
Product Development Innovation
Weaknesses Strengths
8
Opportunities Threats
Vertical Integration Conglomerate
Diversification
Weaknesses Strengths
9
Opportunities Threats
Weaknesses Strengths
Retrenchment Divestiture Liquidation
10
3. Develop Strategic Alternatives
Opportunities Threats
Vertical Integration Conglomerate
Diversification
Concentration Market Development Product
Development Innovation
Weaknesses Strengths
Retrenchment Divestiture Liquidation
Horizontal Integration Concentric
Diversification Joint Venture
11
The Strategic Planning Process continued
4. Implementation 5. Evaluation and Control