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Planning Dimensions

Planning

Determining what you want to accomplish and

developing approaches to achieving your objectives.

Planning Dimensions:

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Strategic and Operational Planning

Strategic Planning The process of developing a mission and long-range

objectives and determining in advance how theywill be accomplished.

Operational Planning The process of setting short-range objectives and

determining in advance how they will beaccomplished.

Strategy A plan for pursuing the mission and achieving

objectives.

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The Strategic Planning Process

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Strategic and Operational Levels

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Competitive Advantage

Core Competency A functional capability (strength) that the firm does

well and one that creates a competitive advantagefor the firm.

Benchmarking The process of comparing an organizations

products or services and processes with those ofother companies.

Scanning the Environment Searching the external environment for

opportunities and threats.

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The Big Picture

Environment

Corporate Strategy

Competitive Priorities

Functional Strategies

Capabilities

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Corporate Strategy

Market analysis segmentation

needs assessment

Socioeconomicand business

environment

Corporate strategy

missions

goals

distinctive competencies

Mission Goals

Distinctive

Competences

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Competitive Priorities

Market analysis segmentation

needs assessment

Socioeconomicand business

environment

Corporate strategy

missions

goals

distinctive competencies

Future directions

global strategy

new products/

services

Competitive priorities

Operations Marketing

cost

quality Finance

time flexibility Others

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Competitive Priorities

Market analysis segmentation

needs assessment

Socioeconomicand business

environment

Corporate strategy

missions

goals

distinctive competencies

Future directions

global strategy

new products/

services

Competitive priorities

Operations Marketing

cost

quality Finance

time flexibility Others

Cost 1. Low cost

Quality 2. High-performance design

3. Consistent quality

Time 4. Fast delivery

5. On-time delivery

6. Development speed

Flexibility 7. Customization8. Volume flexibility

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Functional Area Strategies

Market analysis segmentation

needs assessment

Socioeconomicand business

environment

Corporate strategy

missions

goals

distinctive competencies

Future directions

global strategy

new products/

services

Competitive priorities

Operations Marketing

cost

quality Finance

time flexibility Others

Functional area strategies

finance

operations

others

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Capabilities

Market analysis segmentation

needs assessment

Socioeconomicand business

environment

Corporate strategy

missions

goals

distinctive competencies

Future directions

global strategy

new products/

services

Competitive priorities

Operations Marketing

cost

quality Finance

time flexibility Others

Capabilities

current

needed

plans

Functional area strategies

finance

operations

others

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Flow Strategy

Flow strategies deal with how the operations ofa firm are structured to develop a product orprovide a service

In the software industry, they are often calledProcess Strategies

There are two extreme in flow strategies:

Flexible flow strategy Line flow strategy

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Capabilities

The Role of Flow Strategy

Operations strategy

Process decisions

Quality decisions

Capacity, location, and

layout decisions

Operating decisions

Flow strategy

Flexible flows

Intermediate flows

Line flows

Future

directions

Competitive

priorities

Corporate strategy