MEM 2221 Lecture Notes - Lecture 11: Vision Statement, Planning Horizon, Strategic Planning
11 Dec 2019
School
Course
Professor
Lecture 11: Planning
Chapter 4: Planning and Forecasting
Nature of Planning
Importance of Planning
● Planning - identify objective and design a sequence of programs and activities to
achieve these objectives
● Decide in advance what, how, when, who to do
● Precede doing
The Planning/Decision Making Process
● Planning process/decision making process/scientific method
1. Recognize the problem
2. Define nature of the solution, environment, constraints
3. Formulate alternative designs
a. Must be fully considered
b. Evaluate benefits and disadvantages using a “value model”
4. Implement solution
5. Check if solution actually solved the problem
● Not a linear process
● Iterative
● Modify alternative designs based on feedback
The Foundation for Planning
Strategic Planning
● Strategic planning - organized process for selecting strategies
● Customer focus impacts strategic plan, value creation process and business results
● Disciplined effort to produce fundamental decisions and actions that shape and guide
what an organization is, what it does, and why it does it, with a focus on the future, both
internally and externally
● Vision statement - describes in graphic terms where the goal setters want to position
themselves in the future
● Purpose/mission statement - similar to a vision statement but with a more immediate
business focus with a time horizon
○ Shows what the company is trying to do and what the public sees
○ Essential to long term success
○ Must be clearly communicated and repeated
○ Align work toward meeting customer expectations
● Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis - analyze the
status of the company, assist in planning
○ Build on strengths
○ Resolve weaknesses
○ Exploit opportunities
○ Avoid threats
Document Summary
Planning - identify objective and design a sequence of programs and activities to achieve these objectives. Decide in advance what, how, when, who to do. Planning process/decision making process/scientific method: recognize the problem, define nature of the solution, environment, constraints, formulate alternative designs, must be fully considered, evaluate benefits and disadvantages using a value model . 4: check if solution actually solved the problem. Strategic planning - organized process for selecting strategies. Customer focus impacts strategic plan, value creation process and business results. Disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future, both internally and externally. Vision statement - describes in graphic terms where the goal setters want to position themselves in the future. Purpose/mission statement - similar to a vision statement but with a more immediate business focus with a time horizon.
