Planning is the process used by managers to identify and select goals and courses of action for the organization.The organizational plan that results from the planning process details the goals to be attained.The pattern of decisions managers take to reach these goals is the organization’s strategy.

Determining the Organization’s mission and goals

(Define the business)

Strategy formulation(Analyze current situation &

develop strategies)

Strategy Implementation(Allocate resources & responsibilities

to achieve strategies)

Figure 7.1

This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer

and the needs we can and should satisfy.

This also pinpoints competitors.

B. Establishing major goals: states who will compete in the business.

Should stretch the organization to new heights.

Goals must also be realistic and have a time period in which they are achieved.

8-5

Mission Statement◦A broad declaration of an organization’s overriding purpose

◦ Identifies what is unique or important about its products

◦Seeks to distinguish or

differentiate the organization from its competitors

6

The mission statement is the reason the organization exists◦ Top of the goal hierarchy

◦ Describes the values, aspirations and reason for being

◦ A well-defined mission is the basis for all other goals

Mission statements outline the stated purpose and values to stakeholders

7

Strategic Goals – official goals, broad statements about the organization◦ Define the action steps the company intends to attain

◦ The blueprint that defines activities

Tactical Goals – help execute major strategic plans◦ Specific part of the company’s strategy

◦ Plans of the divisions and departments

Operational Goals – results expected from departments, work groups, and individuals◦ Lower levels of the organization

◦ Specific action steps

8