GMS200 Chapter 6
Chapter 6 – Planning process and techniques
General Mills south to have 40% of its products meet nutrition standards in 8 months
Study Question 1: How do managers plan?
The process of setting objectives and determine how to best accomplish them
Identify the specific results of desired outcomes that one intends to achieve
A statement of action steps to be taken in order to accomplish the objectives
o Steps in planning process:
Define your objectives.
Determine where you stand vis-a-vis objectives.
Develop premises regarding future conditions.
Analyze and choose among action alternatives.
Implement the plan and evaluate results.
o Benefits of planning
Improves focus and flexibility
Improves action orientation
Improves coordination and conntrol
Improves time management
Short range and long range plans
o Short-range plans: 1 year or less
o Intermediate-range plans: 1 to 2 years
o Long-range plans: 3 or more years
People vary in their capability to deal effectively with different time horizons
Higher management levels focus on longer time horizons
Jack Welch , GE and succession planning
o In 1994, 7 year before he retired from General Electric Company (GE), Jack Welch had
started the succession planning process.
o GE is an American multinational corporation
o Products: Appliances, Aviation etc. GMS200 Chapter 6
o Chairman & CEO of GE between 1981 and 2001
o Introduced 6-sigma quality management program and boundaryless organization
o During his tenure, the company value rose by 4000%
o By 1999 he was named “Manager of the Century” by Fortune magazine
Succession planning of GE
o GE has 23 potential candidates in 1994
o In November 2000, GE announced that Jeff Immelt would succeed Jack Welch as the
chairman and CEO of the company.
Strategic and Tactical Plans
o Strategic plans – set broad, comprehensive, and longer-term action directions for the
o Tactical plans – define what needs to be done in specific functions to implement
Human resource plans
Google’s expansion strategy
o Google’s strategic plan is to “organize the world’s information and make it universally
accessible and useful”, Google needs to expand internationally.
o Google’s tactical plans include: to expand its own presence to China, where Google has