1. LEVELS OF STRATEGY
CORPORATE
BUSINESS (SBU)
FUNCTIONAL (OPERATIONAL)

2. GENERIC STRATEGIES COMPETITIVE ADVANTAGE Low Cost Differentiation Cost
Leadership
Differentiation
Broad
Target
MARKET
SCOPE
Cost
Focus
Differentiation
Focus
Narrow
Target
Michael E. Porter, Competitive Advantage

3. CORPORATE STRATEGY OVERALL, GRAND STRATEGY PORTFOLIO STRATEGY
BCG MATRIX
GE BUSINESS SCREEN

6. BENCHMARKING
COMPARE TO “BEST IN CLASS”
BASED ON KEY SUCCESS FACTORS

7. Multi-national Strategy
Global
Strategy
Transnational
Strategy
High
Need for global integration
Multi-domestic
Strategy
Low
Low
High
Need for local responsiveness

8. TYPES OF PLANS STRATEGIC OPERATIONAL TACTICAL GOALS/OBJECTIVES POLICY
PROCEDURE
RULE

9. GOAL SETTING

10. Not a vague abstraction
SINGLE, SPECIFIC TOPIC
Not a vague abstraction
We will maximize profits.
We will be the best.
Better: We will increase profits by 10%.

11. FOCUS ON RESULT, Not on Activity
Activity will not result in goal
Example: Goal is to increase advertising expenditure by 15% in 2000.
Goal is result of activity
Better: Advertising will be increased by 15% in 2000 in order to increase market share from 8% to 10%.

12. MEASURE WHEN FEASIBLE
Must at least be verifiable

13. HAVE A DEADLINE

14. GOALS
SETTING GOALS
NETWORK OF GOALS
MULTIPLE GOALS
SET PRIORITIES

15. GOALS
STATED GOALS
REAL GOALS

16. MBO
A PLANNING TOOL
MOTIVATIONAL TOOL
CONTROL TOOL

17. POLICY
GUIDELINE TO AUTHORITY
USE TO DELEGATE AUTHORITY

18. PROCEDURE GUIDE TO ACTION SERIES OF STEPS NO AUTHORITY
USUALLY A STANDING PLAN

19. RULE A REQUIREMENT “COMMAND” TO DO/NOT DO SOMETHING
NO AUTHORITY, NO DECISION TO MAKE

20. TYPES OF BUDGETS
CASH
EXPENSE
SALES
CAPITAL EXPENDITURE

21. BASE OF BUDGET
INCREMENTAL
ZERO BASE

22. FORECASTING QUANTITATAIVE METHODS QUALITATIVE METHODS TIME SERIES
REGRESSION...
QUALITATIVE METHODS
JURY OF OPINION
SALES FORCE COMPOSITION
CUSTOMER

23. OTHER TYPES OF PLANS SINGLE USE STANDING CONTINGENCY (ALTERNATIVE)
FLEXIBLE
DIRECTIONAL
SPECIFIC

24. SCHEDULING
GANTT CHART
LOAD CHART
PERT

25. OTHER TOOLS BREAK EVEN ANALYSIS LINEAR PROGRAMMING QUEUING THEORY
PROBABILITY THEORY
SIMULATION

26. LENGTH OF PLAN SHORT TERM LONG TERM USUALLY ONE YEAR OR LESS
USUALLY FIVE YEARS
COMMITMENT CONCEPT
SUNK COSTS

27. IMPLEMENTATION PLANS WHO WHAT WHEN WHERE HOW SUPPLIERS COORDINATION
WHAT TO MEASURE/CONTROL

28. “PLAN OF ACTION” OUTLINE
State Goal
Way(s) to accomplish it
Accomplishment interfere with another?
Date(s) to be finished
Problems I may encounter/create?
Suppliers, sources of help
Coordinate with???
Things to monitor, measure

29. IMPLEMENT THE PLAN ACTION PLANS TIME MANAGEMENT IMPORTANT TASKS
URGENT TASKS

30. LEVEL IN ORGANIZATION HIGHER LEVEL IN ORGANIZATION
STRATEGIC
LONGER TERM
MORE DIRECTIONAL
LOWER LEVEL IN ORGANIZATION
OPERATIONAL, TACTICAL
SHORTER TERM
MORE SPECIFIC

31. ENVIRONMENTAL UNCERTAINTY
MORE UNCERTAIN
DIRECTIONAL
SHORTER TERM
MORE CERTAIN
SPECIFIC
LONGER TERM

32. COMPANY LIFE CYCLE FORMATION GROWTH MATURITY DECLINE MORE DIRECTIONAL
SHORTER TERM
MORE SPECIFIC
MATURITY
SPECIFIC
LONGER TERM
DECLINE