管理学罗宾斯9版教师手册(II).doc

CHAPTER5FOUNDATIONS OF PLANNINGLEARNING OUTCOMES After reading this chapter students should be able to:1. Discuss the nature and purposes of planning.2. Explain what managers do in the strategic planning process. 3. Compare and contrast approaches to goal setting and planning.4. Discuss contemporary issues in planning. Management MythMYTH: Planning is a waste of time because no one can predict the future. TRUTH: Planning is doesnt need to be rigid. Flexible planning that includes multiple scenarios can prepare managers for a variety of situation. SUMMARYOrganizations must develop goals, plans, and strategies for how best to achieve their purpose. However, sometimes after evaluating the outcomes of those plans and strategies, managers have to change direction as conditions change. Teaching Tips: Students should be encouraged to think about the advantage of long term planning for companies. How do organizations plan in environments where technology is constantly changing? Have students think of some innovations that were hot one day and then disappeared the next. Why did these innovations not succeed in the long term?I. WHAT IS PLANNING AND WHY DO MANAGERS HAVE TO PLAN?Learning Catalytics Question: Instructor Directions and Follow-UpQuestion TypeQuestionAnswer/ResponseFor the InstructorRegionWhen you were making the decision to choose your current college/university, what influenced your decision?There is no correct answer.It very helpful for students to see themselves as managers of their own careers. This question helps them understand the reason managers make the decisions they make. A. Introduction 1. It is the primary management function, setting the basis for the other functions.2. It encompasses defining the organizations objectives or goals, establishing an overall strategy, and developing a comprehensive hierarchy of plans to integrate and coordinate.a) It is concerned with ends (what is to be done) and with means (how it is to be done).3. Planning can be further defined in terms of whether it is informal or formal. a) In informal planning very little, if anything, is written down. b) In formal planning, specific objectives are written down and made available to organization members.B. Why Should Managers Formally Plan?1. Managers should engage in planning for at least four reasons.a) Planning provides directionb) It reduces the impact of change.c) Planning minimizes waste and redundancyd) It sets the standards to facilitate control. (See Exhibit 5-1).2. Planning establishes coordinated effort. a) Understanding where the organization is going and what must be contributed to reach the objectives, helps members to coordinate their activities and fosters teamwork. 3. A lack of planning can cause various organizational members or their units to work against one another.4. Planning reduces uncertainty.5. It clarifies the consequences of actions.6. It is precisely what is needed when managing in a chaotic environment.7. Planning also reduces overlapping and wasteful activities. 8. Finally, planning establishes objectives or standards that facilitate control. C. What Are Some Criticisms of Formal Planning and How Should Managers Respond? 1. Planning may create rigidity. a) Formal planning efforts lock an organization into specific goals and specific timetables. b) The assumption may be that the environment wont change during the time period the objectives cover.(1) If that assumption is faulty, managers who follow a plan may have trouble.(2) Forcing a course of action when the environment is fluid can be a recipe for disaster.c) Managers need to remain flexible and not be tied to a course of action simply because it is the plan. 2. Formal plans cant replace intuition and creativity.a) Visions have a tendency to become formalized as they evolve. b) Formal planning efforts typically follow a methodology that reduces the vision to a programmed routine. c) Planning should enhance and support intuition and creativity, not replace it. 3. Planning focuses managers attention on todays competition, not on tomorrows survival.a) Formal planning tends to focus on how to best capitalize on existing business opportunities within the industry.b) It often does not allow for managers to consider creating or reinventing the industry. c) Some companies have found much of their success to be the result of forging into uncharted waters, designing and developing new industries as they go.4. Formal planning reinforces success, which may lead to failure.a) Success may, in fact, breed failure in an uncertain environment. b) It is hard to change or discard successful plans.c) Successful plans may provide a false sense of security.d) Managers may need to face that unknown and be open to doing things in new ways to be even more successful. D. Does Formal Planning Improve Organizational Performance? 1. Contrary to the critics, the evidence generally supports having formal plans. 2. However, organizations that formally plan do not always outperform those that dont. 3. Conclusions from studies of the relationship between planning and performance. a) There are generally higher profits, higher return on assets with a formal planning process.b) The quality of the process and appropriate implementation of the plans probably contribute more towards high performance than does the extent of planning. c) Finally, in those organizations in which formal planning did not lead to higher performance, the environment was typically the culprit. (1) Government regulations and similar environmental constraints leave managers with fewer viable alternatives.II. WHAT DO MANAGERS NEED TO KNOW ABOUT STRATEGIC MANAGEMENT?A. What is strategic management?1. Strategic management is what managers do to develop an organizations strategies.2. These plans encompass: a) How the organization will do what its in business to do, b) How it will compete successfully, c) And how it will attract and satisfy its customers in order to achieve its goals.B. Why is strategic management important?1. Example given of Buckle, which has not suffered as much as other retailers from the recent economic downturn. a) Buckles strategy included its placement of stores in states that fared better during economic downturns.b) Buckle implemented customer-service investments as a way to differentiate themselves from other retailers.2. One reason is that it can make a difference in how well an organization performs. a) Research has found a generally positive relationship between strategic planning and performance. Those that have a plan generally have better financial performance.3. The strategic management process helps managers in organizations of all types and sizes face continually changing situations. 4. Strategic management is important because organizations are complex and diverse.5. All types of organizations can benefit from strategic plans.C. What are the Steps of the Strategic Management Process? 1. See Exhibit 5-2. 2. A six-step process that involves strategic planning, implementation, and evaluation. 3. Strategic planning encompasses the first four steps.a) Identify the organizations current mission, objectives, and strategies (Step 1). See Exhibit 5-3. (1) Every organization has a mission statement that defines its purpose and answers the question, “What business or businesses are we in?”(2) Determining the nature of ones business is as important for not-for-profits as it is for business firms. (3) Once its mission has been identified, the organization can begin to look outside the company to ensure that its strategy aligns well with the environment.b) Analyze the external environment (Step 2).(1) Organizations need an accurate grasp of the environment and important trends that might affect the organizations operations.(2) Opportunities are positive external environmental factors.(3) Threats are negative ones.(4) The same environment can present opportunities to one organization and pose threats to another.c) Evaluate the organizations internal resources (Step 3).(1) This involves asking specific questions and analyzing the available information.(2) What skills and abilities do the organizations employees have; human resources?(3) What is the organizations cash flow; financial resources?(4) Has it been successful at developing new and innovative products?(5) How do customers perceive the image of the organization and the quality of its products or services?d) Every organization is constrained in some way by available resources and skills or what the organization has?e) The analysis should lead to a clear assessment of the organizations internal resources, such as capital, worker skills, patents, and the like.f) The capabilities include, how does the organization work? It should also indicate organizational departmental abilities, such as training and development, marketing, accounting, human resources, research and development, and management information systems. 4. Strengths (strategic) are internal resources or things that the organization does well (Step 3).a) Core competencies are any of those strengths that represent unique skills or resources that can determine the organizations competitive edge.b) When an organization lacks certain resources or identifies activities the firm does not do well, these are called weaknesses.5. A merging of the externalities (Step 2) with the internalities (Step 3) results in an assessment of the organizations opportunities.6. This merging is called SWOT analysis because it brings together the organizations Strengths, Weaknesses, Opportunities, and Threats in order to: a) Exploit an organizations strengths and external opportunities, b) Buffer or protect the organization from external threats, c) Correct critical weaknesses.7. Having completed the SWOT analysis, the organization reassesses its mission and objectives.8. Step 4 is formulating strategies with three main types - corporate, competitive, and functional.9. Implementing strategies is Step 5. 10. The final step is evaluating the results to determine the effectiveness or whether changes need to be made.D. What Strategic Weapons do Managers Have? 1. To the degree that an organization can satisfy a customers need for quality, it can differentiate itself from the competition and attract and hold a loyal customer base. a) Constant improvement in the quality and reliability of an organizations products or services can result in a competitive advantage others cannot steal.b) Product innovations are not sustainable because they can be quickly copied by rivals.c) Incremental improvement is something that becomes an integrated part of an organizations operations and can develop into a considerable cumulative advantage. Technologys Role in Company StrategyA companys information technology can make a significant contribute to their strategy. Two examples are given: Caesars Entertainment (formerly Harrahs) and Prada. Caesars research showed that customers who were satisfied with the service they received at the casino increased their gaming expenditures by 10 percent, and those who were extremely satisfied increased their gaming expenditures by 24 percent. On the other hand, Pradas attempt to integrate wireless networks resulted in equipment malfunctions and did not result in increase sales.Discuss This: How should managers ensure that their IT efforts contribute to helping strategies succeed? How do your IT applications (smartphone organizers and calendars, apps, text messaging, etc.) help you be a better planner in your personal life?2. Benchmarking can help promote quality because it involves the search for the best practices among competitors and non-competitors that lead to superior performance.a) Management can improve quality by analyzing and then copying the methods of the leaders. b) It is a very specific form of environmental scanning.c) In 1979, Xerox undertook the first benchmarking effort in the United States. d) Until then, the Japanese had been aggressively copying the successes of others.e) Xeroxs head of manufacturing took a team to Japan to make a detailed study of its competitions costs and processes at its own joint venture, Fuji-Xerox. (1) Its Japanese rivals were light-years ahead of Xerox in efficiency.(2) Benchmarking those efficiencies marked the beginning of Xeroxs recovery.3. Social media has become a tool organizations can use to as a strategic weapon. a) Red Robin example.b) Successful social media strategies should:(1) Help people inside and outside the organization connect.(2) Reduce costs or increase revenue possibilities or both. 4. Data can also be used as a strategic weapon. Collecting data about customers, partners, employees, markets and other quantifiable areas can be used to respond to the needs of these same stakeholders. E. What Strategies do Managers use? 1. Strategies need to be set for all levels in the organization. See Exhibit 5-4.a) Select a set that is compatible at each level and will allow the organization to best capitalize on its resources and the opportunities available in the environment.2. Three levels of strategy are available: corporate, competitive, and functional. a) A corporate strategy is an organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses.(1) Growth strategy - is when an organization expands the number of markets served or products offered, either through its current business (es) or through new business (es). (a) Concentration based on primary line of business - Beckman Coulter.(b) Vertical integration - company becomes its own supplier - Apple Computers.(c) Horizontal integration - firm combines with competitors - LOreal and the Body Shop.(d) Diversification - related or unrelated businesses - American Standard.b) The second corporate strategy is the stability strategy.(1) Best known for what it is not. (2) It is characterized by an absence of significant changes. (3) It is most appropriate when several conditions exist: a stable and unchanging environment, satisfactory organizational performance, an absence of valuable strengths and critical weaknesses, and only insignificant opportunities and threats.(4) There are organizations that are successfully employing a stability strategy. c) The third is the renewal strategy.(1) The retrenchment strategy is for minor performance problems.(2) Turnaround strategy is used when companies face serious financial challenges such as Fannie Mae, Freddie Mac, and other financial institutions. 3. A competitive strategy is the second main type.a) Companies will seek a position, so that they can gain a distinct edge over the companys rivals. Units that are independent and formulate their own competitive strategies are called strategic business units (SBUs).b) This positioning requires a careful evaluation of the competitive forces. c) The competitive advantage comes from the organizations core competencies by doing something that others cannot do or doing it better than others can do it. 4. Choosing a competitive strategy - Michael Porter of Harvards Graduate School of Business is a leading researcher in this area.a) His competitive strategies framework has generic competitive strategies. b) No firm can successfully perform at an above-average profitability level by trying to be all things to all people. c) Management must select a competitive strategy that will give it a distinct advantage by capitalizing on the strengths of the organization and the industry it is in.(1) These three strategies are: cost-leadership, differentiation, and focus. (2) The low-cost producer in its industry is following a cost-leadership strategy. (a) Success requires that the organization be the cost leader; the product or service being offered must be perceived as comparable to rivals, or at least acceptable to buyers. (b) A firm typically gains a cost advantage by efficiency of operations, economies of scale, technological innovation, low-cost labor, or preferential access to raw materials. (c) Examples, Wal-Mart, Texas Instrument, and Southwest Airlines.(3) A differentiation strategy is followed when a firm seeks to be unique in its industry in ways that are widely valued by buyers. (a) It might emphasize high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image. (b) The key is that the attribute chosen must be different from those offered by rivals and significant enough to justify a price premium that exceeds the cost of differentiating. (c) For example, 3M (product quality and innovative design), Coach (design and brand image), and Apple (product design).(4) The focus strategy aims at a cost advantage (cost focus) or differentiation advantage (differentiation focus) in a narrow segment. (a) Select a segment or group of segments in an industry (such as product variety, type of end buyer, distribution channel, or geographical location of buyers) and tailor the strategy to serve them to the exclusion of others. (b) The goal is to exploit a narrow segment of a market. (c) Feasibility depends on the size of a segment and whether it can support the additional cost of focusing. (d) Example, Denmarks Bang & Olufsen - high end audio equipment.5. What if an organization cannot use one of these three strategies to develop a competitive advantage?a) Porter uses the term “stuck in the middle” to describe that situation. b) Organizations that are stuck in the middle find it difficult to achieve