1. Planning, Strategy, Effectiveness: Overview u Engage in SWOT Analysis u Establish and Communicate Mission/Goals u Set Priorties (bargaining, if necessary) u Select Strategies u Assess Effectiveness u Reconsider the Above

2. SWOT Analysis u INTERNAL ENVIRONMENT –STRENGTHS –WEAKNESSES u EXTERNAL ENVIRONMENT –OPPORTUNITIES –THREATS

3. The Importance of Goals and Plans u Legitimacy to external audiences such as: –Investors –Customers –Suppliers –Community u A source of motivation and guidance for internal audiences

4. Common Criticisms of Planning u Creates rigidity u Doesn’t work in dynamic environment u Can’t replace intuition and creativity

5. Should Organizations Plan? Most orgs. do better by planning - Match degree and frequency of planning to rate of change in the environment Andy Grove (CEO of INTEL) plans “like a fire department plans”

6. Organizational Mission u Most general purposes, goals, plans u Long run vision, values u What distinguishes it from other organizations Focus on items such as: Focus on items such as: *Market and customers *Product quality *Location of facilities *Attitude toward employees

7. Mission Statements CompanyCompaqAT&T Mission Statement Compaq, along with our partners, will deliver compelling products and services of the highest quality that will transform computing into an intuitive experience that extends human capability on all planes -- communication, education, work, and play. We are dedicated to being the world’s best at bringing people together -- giving them easy access to each other and to the information and services they want and need -- anytime, anywhere.

8. Organizational Goals u Official Goal - Mission u Operative Goals –Overall Performance –Resource Management –Market Share –Employee Development –Innovation –Productivity –Social Responsibility

9. Porter’s Competitive Strategies Low-CostLeadershipDifferentiation Focused Low-Cost LeadershipFocusedDifferentiation Strategy Many Fe w Low Cost Differentiation Number of Market Segments

10. Porter’s Competitive Strategies u Differentiation (Maytag, Mary Kay, Perdue, L.L. Bean, Nike) u Cost Leadership (Wal-Mart, Southwest Air, Gallo Wine, Motel 6) u Focused Differentiation (Stouffer’s Lean Cuisine, Mercedes, Rolex) u Focused Cost Leadership (Ft. Howard Paper, ARCO Gasoline)

11. Organizational Effectiveness u Effectiveness vs. Efficiency u Traditional Effectiveness Approaches –Goal Approach (outputs) –Resource-Based Approach (inputs) –Internal Process Approach (transformation) »Human Relations »Economic Efficiency u Contemporary Effectiveness Approach –Stakeholder Approach (combines above by focusing on concerned groups)

12. Organizational Effectiveness FORTUNE magazine's annual "America's Most Admired Corporations." The rankings are a composite of 8 attributes: u Quality of Management, u Quality of Products and Services u Innovativeness u Long-term Investment Value u Financial Soundness u Ability to Attract, Develop, and Keep Talented People u Community and Environmental Responsibility u Use of Corporate Assets