Planning and Strategic Management
Planning
- All planning occurs within an environmental context -If managers do not understand this context, they are unable to develop effective plans -Basing on understanding this context, manager establish organization’s mission
-The mission outlines the organization’s purposes, premises, values and directions -The mission helps determines Strategic goals and plans -Strategic goals and plans let developing tactical goals and plans -Tactical goals and plans determine operational plans
I/ Organizational Goals: - Provide guidance and a unified direction for people in the organization: everyone can know to where the organization is going. - Goal-setting promotes good planning which facilitates future goal setting - Serve as a source of motivation for employees of the organization - Provide an effective mechanism for evaluation and control
* Kinds of Goals There is four basic level of goals : - 1- Mission - 2- Strategic goal - 3- Tactical goal - 4- Operational goal
1- Mission: Is a statement of its fundamental, unique purpose that differentiate it from other firms and identifies the scope of the business’s operations in product and market terms (E.g: being the first purveyor of an enzyme in the world) 2- Strategic goals: - Are set by and for top management of organization. -Focused on broad and general issues ( E.g: opening 1000 Laboratories in the world)
3- Tactical goals: - Are set by and for middle managers. -Focused on how to operationalize actions necessary to achieve the strategic goals -(E.g: working on the distribution of homologues laboratory in different country and possibilities of cooperation)
4- Operational goals ( or objectives) - Are set by and for low-level managers - To Precise short-term objectives associated with the tactical goals. -(E.g: To precise the number of laboratory to be opened by year )
II/ Organizational Plans: Organizations establish many different kinds of plans: -Strategic plans -Tactical plans - Operational plans
1- Strategic Plans: -Set by the Board of directors and top management - Outline : - Decisions of resources allocations -Priorities -Action steps necessary to reach strategic goals -Have extended time horizon - Adress questions of -Scope -Resource deployment -Competitive advantage
2- Tactical Plans -Set for middle management -Are developed to achieve tactical goals - Have short –time horizon - Have specific and concrete focus -Are concerned more with actually getting things done than with deciding what to do
3- Operational Plan -Set by middle and lower –level managers -They carry out tactical plans to achieve operational goals -Have short-term focus -Are narrow in scope : concern small activities
The Nature of Strategic Management
STRATEGY : -Is a comprehensive plan for accomplishing an organization’s goals -Strategic managements: a comprehensive and ongoing management process aimed at formulating and implementing effective strategies -Effective strategies: That promote a superior alignment between the organization and its environment
The components of strategy: -A well conceived strategy address three areas: - 1- Distinctive competence - 2- Scope - 3- Resource deployment
-1- Distinctive Competence : Something that the organization does exceptionally well -E.g: -Speed in moving inventory -Electronically transmits orders to supplies in other countries
-2- The Scope: The scope of a strategy specifies the areas of competitions - E.g: -With which laboratory we can compete - In which country we can compete
- Resource deployment : Concern how to distribute its resources across the areas in which it competes E.g: - How many Laboratories by Country -Area or regions of installing laboratories
Types of strategic Alternatives : Most business today develop strategies at two distinct levels: -1. Business level strategy: A strategic alternatives to conduct business in a particular operation ( industry, market) - 2. Corporate-level-strategy: a strategic alternatives to manage many operations simultaneously.