Planning and Strategic Management Essay

Management Chapter 10 Planning and Strategic Management Planning Overview Importance of Goals Goals provide a sense of direction Goals focus our efforts Goals guide our plans and decisions Goals service us evaluate our progress The importance of planning at organizations The Hierarchy of Organization Plans Strategic Plans Plans designed to meet an organizations board goals. functional Plans Plans that contain details for carrying out, or implementing, those strategic plans in day-to-day activities.How Strategic and Operational Plans Differ Strategic Plans Operational Plans Time Horizons Strategic plans tend to anticipate ahead several years or even decades For Operational plans, a year is often the relevant time period Scope It affects a dewy-eyed range of organizational activities It has a narrow and more limited scope Degree of Detail Strategic plans are stated in terms that serve simplistic and generic Operational plans are stated in relatively finer detail The Evolution of the Concept of StrategyStrategy The board political platform for defining and achieving an organizations objectives the organizations response to its environment over time. Strategic Management The management process that involves an organizations gentle in strategic planning and then acting on those plans. for attaining objectives The process of seeking find out ideas ( rather than routinely implementing existing policy) and How strategy is formulated, not equitable what the strategy turns out to be The Strategic Management ApproachDan Schendel and Charles Hofer have suggested four key aspects of Strategic Management- 1) Goal Setting 2) Strategy Formulation 3) validation 4) Strategic Control The Strategic Management process Strategic Planning includes both the goal-setting and strategy-formulation processes. Strategy Implementation involves with action based decisions. Levels of Strategy Some key Distinctions Corporate-level strategy Strategy formulated by top management to oversee the interests and operations of ultiline corporations.Business- building block strategy Strategy formulated to meet the goals of a particular air also called line-of- business strategy. Functional-level strategy Strategy formulated by a specific functional area in an effort to carry out business- unit strategy. The Corporate Portfolio Approach Portfolio framework An approach to corporate-level strategy advocated by the Boston Consulting group also known as the BCG matrix.