A SS I G N M E N T

NIM: 350168
Prepared by: Muhammad Heickal Pradinanta
Date: Wednesday, March 26,2014
Course: Management
The summary of chapter eight

The Manager as a Planner and

Strategist
Planning and Strategy
Planning
Identifying and selecting appropriate goals and courses
of action for an organization.
The organizational plan that results from the
planning process details the goals and specifies
how managers will attain those goals.
Strategy
A cluster of decisions about what goals to pursue, what
actions to take, and how to use resources to achieve
goals.

Mission Statement
A broad declaration of an organizations purpose that
identifies the organizations products and customers and
distinguishes the organization from its competitors.

Three Steps in Planning

The Nature of the Planning Process

To perform the planning task, managers:

1. Establish where an organization is at the present time
2. Determine its desired future state
3. Decide how to move it forward to reach that future state

Why planning is important:

1. Necessary to give the organization a sense of direction and
purpose
 2. Useful way of getting managers to participate in decision
making about the appropriate goals and strategies for an
organization
3. Helps coordinate managers of the different functions and
divisions of an organization
4. Can be used as a device for controlling managers.
Unity
At any one time only one central, guiding plan is put into
operation .
Continuity
Planning is an ongoing process in which managers build
and refine previous plans and continually modify plans
at all levels
Accuracy
Managers need to make every attempt to collect and
utilize all available information at their disposal
Flexibility
Plans can be altered and changed if the situation
changes

Levels of Planning at General Electric

 Levels and Types of Planning

Levels of Planning
Corporate-Level Plan
Top managements decisions pertaining to the
organizations mission, overall strategy, and structure.
Provides a framework for all other planning.
Corporate-Level Strategy
A plan that indicates in which industries and national
markets an organization intends to compete.
Business-Level Plan
Long-term divisional goals that will allow the division to
meet corporate goals
Divisions business-level and structure to achieve
divisional goals
Business-Level Strategy
Outlines the specific methods a division, business unit,
or organization will use to compete effectively against
its rivals in an industry
Functional-Level Plan
 Goals that the managers of each function will pursue to
help their division attain its business-level goals
Functional Strategy
A plan of action that managers of individual functions
can take to add value to an organizations goods and
services
Time Horizons of Plans
Time Horizon
Period of time over which they are intended to apply or
endure.
Long-term plans are usually 5 years or more.
Intermediate-term plans are 1 to 5 years.
Short-term plans are less than 1 year.
Types of Plans
Standing Plans
Used in programmed decision situations
Policies - general guides to action
Rules - formal written specific guides to action
Standard operating procedures (SOP) - specify an exact
series of actions to follow
Single-Use Plans
Developed to handle non-programmed decision-making
in one-of-a-kind situations
Programs: integrated plans achieving certain goals.
Project: specific action plans to complete programs.

Scenario Planning
Scenario Planning (Contingency Planning)
The generation of multiple forecasts of future conditions
followed by an analysis of how to effectively respond to
those conditions.

Determining the Organizations Mission and Goals

Defining the Business
o Who are our customers?
o What customer needs are being satisfied?
o How are we satisfying customer needs?
Establishing Major Goals
o Provides the organization with a sense of direction

Two Mission Statements