DECISION-MAKING PLANNING Strategic Management

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					DECISION-MAKING
PLANNING
& Strategic
Management
CASE STUDY

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


 GanttCharts
 Program Evaluation and
  Review Technique (PERT)
   Clearlydefined project activities
   Sequencing requirements
   Sequence relationships diagram
   Time estimates (formula)
   Calculate critical path
   Calculate actual activity times
       Management by
      Objectives (MBO)

 Process by which specific goals
 are set collaboratively for the
 whole organisation and every unit
 and individual within it

 Goalsare then used for planning,
 managing, organisational activities
 and assessing and rewarding
 contributions
              Management by
             Objectives (MBO)

    Steps in the MBO process
    1.   Develop overall organisational
         goals
    2.   Establish specific goals for depts,
         SBUs and individuals
    3.   Formulate action plans
    4.   Implement and maintain self-
         control
            Give latitude in carrying out activities
    5.   Review progress periodically
    6.   Appraise performance
      Strategic
     Management

 The   Process

   Strategic   formulation

   Strategy    implementation
            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
        Formulating
       Corporate-Level
          Strategy

 Grand   Strategy
  Growth
    Concentration

    Vertical integration
    Diversification

  Stability
  Defensive
    Harvest

    Turnaround

    Divestiture

    Bankruptcy

    Liquidation
               Portfolio Strategy
                 Approaches
 BCG growth-share mix
 Product/Market evolution matrix

     Business Unit’s Competitive Position
                  Strong   Average   Weak
    Development

    Growth
    Competitive
    shakeout
    Maturity
    Saturation
    Decline
         Formulating
    Business-Level Strategy

 Porter’sCompetitive
 Strategies
     Cost Leadership
     Differentiation Strategy

     Focus Strategy



        Formulating
      Functional -Level
          Strategy
            Strategy
         Implementation

   Carry out strategic plans
     Technology
     Human   resources
     Reward systems
     Decision processes
     Structure

   Maintain strategic control
              control systems
     Strategic
     Adjustments as necessary