Markteing Manager Course - Chapter 05

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Learning Objectives After reading this chapter, you should be able to: To take advantage of the benefits of planning at every level of the organization Recognize major planning pitfalls and develop quality planning programs Balance formal planning with opportunistic planning Establish objectives to drive the entire planning process Prepare action plans at the strategic, tactical, and operational levels Learn how to implement plans successfully McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
What is planning? The management function that: assesses the management environment to set future objectives; and maps out actions necessary to achieve those objectives. Planned actions require careful resource allocation. Plans must be accompanied by implementation guidelines. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Planning Develop a sense of direction and purpose Identifying the factors that affect the organization Assessment of external forces Encouraging participation Coordination of efforts Establishment of priorities Focusing attention on different time horizons McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of planning (continued) Understanding circumstances contributing to past success or failure Assurance of the availability of adequate resources Establishing performance standards Supporting organizational control systems Developing “what if” scenarios Management development McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Pitfalls of Planning Poor forecasts of future conditions Plans imposed from above Planning as a self-contained activity Extensive bureaucratization Inflexible adherence to objectives and processes McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Keys to Successful Planning Involving different organizational levels Using both numerical and judgmental methods Viewing planning as continuous and capable of adapting to change Avoiding paralysis of the analysis Concentrating on a manageable set of issues McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Formal Planning and Opportunistic Planning Formal planning Opportunistic systems are designed planning involves: to: Programmatic actions triggered by Deliberately identify unforeseen objectives; and to circumstances. Structure the major It can coexist with tasks of the formal planning and organization to can help the formal accomplish them. plan function more smoothly. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Setting Objectives Objectives are more general at the top and become more specific at the lower level Overall objectives of the organization reflect its mission Objectives should be specific and measurable. Objectives should be challenging and achievable Objectives should specify a timetable or deadline for accomplishment. Objectives should be prioritized. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Key Steps of the MBO Cycle Insert Figure 5.2 here
To be effective, a strategic action plan should meet the following criteria: Proactivity – The degree to which the strategic action plan takes a long-term view of the future. Congruency – The extent to which the strategic action plan fits with organizational characteristics and the external environment. Synergy – The integration of the efforts of various organizational subunits to better accomplish corporate-wide business objectives. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Two important aspects of tactical action plans: Division of Labor – The formal assignment of authority and responsibility to job holders. Helps ensure that tasks of jobholders are appropriate for accomplishing the department’s tactical action plan, which in turn should support the organization’s strategic action plan. Budgeting – Controlling and allocating funds. Variable budgeting Moving budgeting McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Benefits of Operational Planning The opportunity to use feedback for continued incremental learning. The ability to visualize alternative types of operations – i.e., alternative ways to use resources to create the product or service. The ability to predict the effects of modifications in operations on the efficiency of operations. The ability to evaluate the effectiveness of operations. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.
A Six-Stage Approach to Facilitate Organizational Problem Solving Identify performance gaps. Identify tasks and work processes necessary for accomplishing the plan. Check for organizational congruence. If any congruencies or inconsistencies are found, intervene to create alignment in order to effectively implement the plan. Execute the plan. Learn from the consequences. McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

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