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Unit 01: Introduction to Management

Organisational Planning and Goal Setting

Introduction to organisational planning

• Determining organisational goals and defining the

means for achieving it.

• A plan: an outline for goal achievement and specifies’
• Resource allocation
• Schedules
• Tasks

Strategic Planning Process

• Encourages management to think beyond the day to day

activities.

Answers questions of: Where are we now? Where do we want to go? How are we going to go?

Strategic Planning Process

Vision Statement

• Is an aspirational view of the desired state of an organisation

at the point in the future.

• The ideal state organisation wishes to achieve
• Vision is inspirational and aspirational and should challenge

employees

Transforming lives and influencing the future through transmission of knowledge.

Mission Statement

• Mission is considered useful in shorter run as it defines the road

map for the accomplishment of vision.

• Mission statements may contain the indications on the following:
• Industry or business the organisation is mainly concerned with
• Indication of the realistic market share or market position the
• rganisation should aim towards
• Summary of the values and beliefs of the organisation
• Specific and highly context dependent objectives

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Goals: Levels of Goals

Mission Statement Strategic Goals Tactical Goals Operational Goals Broad statements describing where the organisations want to be in future. Relates to the overall organisation as a whole. Results that major divisions and departments within the

• rganisation intend to achieve

Results expected from department, work groups and individuals.

Objectives

• Quantitative objectives: Related

with financial targets

• Qualitative objectives: Related with

market based aspirations such as market share, customer service, repeat business, customer retention, employee retention.

Explicit objectives: Objectives those are

• bvious and stated publicly by the
• rganisation

Implicit objectives: These are subobjectives to support explicit

• bjectives

SWOT Analysis

• Analyses the key issues and opportunities from the business environment and the strategic

capabilities of an organisation those are most likely to impact the strategy development.

• Starts by reviewing the strengths and weaknesses: INTERNAL CHARACTERISTICS
• Evaluates the external opportunities and threats: EXTERNAL ENVIRONMENT

SWOT Analysis

Strengths and Weaknesses:

• Management and organisation

structure

• Marketing
• Human resources
• Financial performance
• Production
• Research and development

Opportunities and Threats:

• Political environment
• Economic factors
• Social factors
• Technological factors
• Environmental factors
• Legal factors
• Supplier factors
• Customer factors
• Competition
• Potential threat from new entrants

Porter’s Five Forces Analysis

This analyses the competitive forces that will determine the degree of competition and ability to generate profits within an industry.

Intensity of current rivalry in the industry Threat of New Entrants/ Barriers to Entry Bargaining Power

• f Suppliers

Bargaining Power of Customers Threat of Substitutes

Industry is a group of firms producing the same principle product. Evaluates the : Current competition Potential competition in near future The attractiveness of the market

Porter’s Five Forces Analysis

Force Description Threat of new entrants Extent to which there are barriers to entry Higher degree of barriers to entry: threat of new entrants will be low Low degree of barriers to entry: threat of new entrants will be high Threat of substitutes Depends on the nature of the product being traded in the market Bargaining power of customers The power the organisation has towards its customer which will reflect the amount

• f pricing power it has towards the customers

Bargaining power of suppliers The extent to which supplier has pricing power over the organisation Competitive rivalry The extent to which competition exists in the industry

Ansoff’s Matrix: Strategies for Growth

Market Penetration Product Development Diversification Market Development

EXISTING PRODUCTS NEW PRODUCTS EXISTING MARKETS NEW MARKETS

Increase risk Increase risk

Thank You!