Basic Strategy Evaluations...

Planning- The process of defining future the period objectives.

Objectives- Statements that outlines what the company is trying to achieve 

Three basic strategy evaluations 

1. Reviewing internal and external factors
2. Measure performance
3. Taking corrective action 

S.W.O.T

Strengths

• Teach
• Pavent
• Tutor
• Activities
• Clubs 

The process to evaluate the " over all health" of a company.

Weaknesses
Opportunities
Threats

Planning Process- Formulate the plan, implement evaluations.

1. What is the appropriate company structure 
2. motive employees 
3. develop short- range goals
4. Establish functional strategies 

Re-Organizing- A company can be very expensive. '

Evaluate- Monitor the companies process. 

1. Does it need re-vising (change)? 
2. What problems might happen? 

S.M.A.R.T

Aim: what are policies, Procedure, and rules?

S- Specific
M- Measurable
A-Atainable
R-Realistic
T-Timely

Setting goals- Concise statements that provide direction for employees and sets the standards for achieving the companies strategic plan.

Policies- Broad general guides to action that establish boundaries which employees operate.
Procedure- A detail series of relate steps written to implement a policy
Rule- Detail specific and definite corporate actions that employees must follow.
_________________________
|{Experiences
|{Salary
|{Profit 
|_______________________ 3 times the original price

The process to evaluate the... "over all health" of a company. 

Strategic Management

Strategic Management - Planning at the highest level of the company.

• Develop- The Plan
• Implement- DO IT! 
• Evaluate- CHECK IT!  

Formulating- Obtain a clear understanding of the current position of the company.

• Identify the mission
• what were the past and pleasant strategies. 
• Diagnose the company's past and present performance
• Set objective for the companies operation. 

Identify Past and Present Strategies 

1. Has it been developed yet?
2. Can it be analyze?
3. Do you have data?

Diagnose Performance 

1. How is the company preforming?
2. How has it Preformed?
3. Is the trend move up or down? 

Functional Strategies

Business Strategies - Plans that pertain to single departments with in a company.

1. Overall Cost Leadership- Designed to produce and deliver a product on service for a lower cost than the competition. 
2. Differentiation- A strategy to make the P/S Unique customers spend more. {Juuar Autos) 
3. Focus- Directs marketing and Sales towards a small segment of the market ( Federal express) 

Functional Strategies 

Short-Range 

Practical- Implementation

• Sales and marketing 
• Production- Quickly on time
• Company Expands
• R&D Develop, Improve to release coset 
• Human Resources needs 

Mission Statement.

Fortune 500 Mission statements 

Aim: how does a mission statement motivate a employee?

Summary of an aim and values to guide produces and good decision making. 

AFLAC COMPANY 

- To combine agressive strategic marketing quality products and services at competitive prices to provide the best insurance value for consumers.

AMERICAN STANDARD COMPANY - 

{because it gives a sense of best communication other companies are a competitive company.} 

American standards mission is to "be the best in the eyes of our costumers, employees and Share holders."

AGCO COMPANY 

Profitable growth through superior customer service innovation quality and commitment.

Mission Statement strategies

1. Visionary- What the business aspires to be 
2. Broad- Do not use too narrow of what the company does. 
3. Realistic- Practical/Workable
4. Motivational- Inspires you 
5. Short & Concise (should be able to fit on a T-shirt!) 
6. Easily Understood- Use plain language (NO SLANG!) 

Review of Lee Iacocca

Lee Iacocca believed in only three things...

• People
• Product 
• Profit 

Lee Iacocca was known for....

• FORD- Mustang
•  "56 for 56" 
• Japanese competition 
• Getting Chrysler out of bankruptcy
• Merged with AMC/JEEP!!!! 

Management style: Management styles are characteristic ways of making decisions and relating to subordinates. Different management styles can be employed. 

"Good leaders know how to follow their people" 

"Management is nothing more than motivation other people." 

The N'cs of leader ship are..

• Communication 
• Character
• Competent 
• Charisma 
• Common Sense 
• Courage 
• Convict 
• Creativity 
• Curiosity 

Lee Iacocca

4. Retrenchment- Strategy- (defensive) A plan to reverse negative trends in a company (ex: losses in sales.)  Also used to overcome crises and problems. 

•  Turn around- Used to Oregon success 
• Directive - A company sells some part of it's business. 
• Liquidation- Sell or dissolve the entire company. 

5. Combination Strategy- Adopting several different methods must establish a priority list competition will gain an advantage. 

Lee Iacocca 

Was hired by ford motor co. and was noted for his successful promotion of mustangs. He then became president of Ford in 1970. In 1979 he was hired by nearly bankrupt Chrysler corp with in a few years Chrysler was showing record of profits, and he became a national celebrity he then retired in 1992. ( He was also a Engineer and graduated from Princeton college.)

Continuation of voc.

Strategy- an outline of the basic step management is going to take to achieve a goal three primary levels

1. Grand/Corporate strategy- Provides over all direction of the company. They can expand..
   • Operations 
   • products to manufacture 
   • # of employees 
   • budget spending
   • marketing 
2. Growth Strategy: Plans to develop A company expanding sales, products or services to current markets.

• Concentration Strategy- Extends the sale of current products or services to current market. 

• • Diversification: Moves a company into a similar kind of business with new or different products/service 
  • Concentration Strategy- Extends the sale of current products or services to current market. 
  • Vertical integration: Moves a company into a market it  previously was. 

     3. Stability Strategy- A plan to keep a company operating at the same level for several of years.

A Company most always seek growth management would generally not take a "bread-weeping" Approach because (it may dramatically affect the entire company. They will use a slow changing work Environment. (continue notes on May 6th.) 

Why do managers plan?

Aim: why do managers plan? 

Experiences and knowledge of the company operations will have them use a combination of frontal and informal planning. Effective managers will encourage employee participation and feedback. 

1. Good suggestions can come from anyone.
2. Employees have a better understanding of the company direction. 
3. Employees feel they are apart of the process and become more committed. 
4. Positive participation improves morals (How you feel.) and loyalty.

Formal planning- A systematic study of an issue and the preparation of a written document to deal with the problem. 

• Short-Range- up to one yrs 
• Intermediate- 1 to 3 yrs 
• Long range- 3 to 5 yrs (can be as much as 20) 
• Peritoneal- short range planning it focuses on specific ideas and dealing with specific functions.
• Strategies- Long range- done by the highest measurement.