1. PLANNING
Process of deciding what objectives to pursue during a future time period and what to do to achieve those objectives.
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2. PLANNING HORIZONS Short-Range Plans: Cover up to one year.
Long-Range Plans: Span at least three to five years; some can extend up to 20 years.
Intermediate Plans: Cover time span between short and long range plans.
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3. OPERATIONAL VERSUS STRATEGIC
Strategic Planning: Top-level long-range planning. Covers a long period of time and affects much of the organization.
Operations or Tactics Planning: Short-range planning. Mostly done by middle to low level management and concentrates on functional plans (Marketing, Production, Finance, Personnel, etc.).
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4. MBO!!!!!
Management by Objectives (MBO): Converting organizational objectives into personal objectives.
Policies, Procedures, and Rules!
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5. STRATEGY
Outlines how management intends to achieve objectives. The means to the end!
Corporate (Grand) Strategies: Addresses what businesses we will be in and how resources will be allocated.
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6. GRAND STRATEGIES Growth Stability Defensive Combination
Concentration, Vertical Integration, Diversification
Stability
Defensive
Turnaround, Divestiture, Liquidation
Combination
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7. STRATEGIC MANAGEMENT
Formulation, proper implementation, and continuous evaluation of strategic plans.
Formulation Phase
Implementation Phase
Evaluation Phase
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8. FORMULATION PHASE Identify Mission
Identify Past and Present Strategies
Diagnose Past and Present Performance
Set Objectives
(Long Range versus Short Range)
SWOT Analysis!
Compare Strategic Alternatives
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9. SWOT ANALYSIS Hey Man, you don’t know SWOT! Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
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10. CONTROLLING THE STRATEGY
IMPLEMENTING,
EVALUATING, AND
CONTROLLING THE STRATEGY