Chapter 9.1
(Part 1: Page 210 – 212)
Planning and Organizing Processes
Management Functions
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Plan
Organize
Direct
Control
Planning Processes
• Plan – outline a course of action for the
future
• Planning Process
1. Situational analysis
2. Decision making
3. Setting goals
1. Situational Analysis
• Mgt. completes and external and internal
examination of co.
• SWOT analysis:
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S: strengths
W: weaknesses
O: opportunities
T: threats
2. Decision Making
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The key role in creating good plans
Based on SWOT
Also deciding what NOT to do
Six steps:
1.
2.
3.
4.
5.
6.
State the problem in a positive way
Identify key limitations
Generate creative alternatives
Evaluate alternatives
Choose the solution and state reasons for choice
State a plan of implementation
3. Setting Goals
• SMART goals
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Specific
Measurable
Achievable
Realistic
Time bound
• Goal setting is for everyone
Assignment
• http://hononegahinternationalbusiness.weebly.com/
Example
• State your company and introduce its scenario/problem:
– My company is Mary’s Market Café & Bakery
– Our scenario is that we would like to open a café and bakery in
Mexico (operations, service, and product)
• Complete a situation analysis for your company:
Internal:
– S: customer service, customer loyalty/reputation
– W: lack of access to distribution channels, access to local natural
resources
External:
– O: well established corporate position, market niche, ability to meet
unfulfilled needs/wants
– T: competition in the marketplace, regulations, shift in consumer tastes
Example, cont.
• Include the 6 steps of decision making:
1.
2.
3.
4.
5.
6.
State the problem in a positive way: Mary’s Market is eager to open a new location in
Cancun, Mexico.
Identify key limitations: We are aware of limitations in regulations, strategic alliances
with local food vendors, and access to distribution channels
Generate creative alternatives: Hire a assistant manager from Mexico, Move to Mexico 3
months early to set up alliances and find necessary dealers with access to distribution
channels, Hire a complete staff from Mexico and travel back and forth to oversee process
of startup
Evaluate alternatives: costs, travel, time, language barriers, business barriers, etc.
Choose the solution and state reasons for choice: We chose to hire a assistant manager
who is from the area and has access to the needed strategic alliances (purchasing
equipment, local food producers, employees). We chose to do this because it would save us
the money in travel and would help us to gain an advantage in the marketplace.
State a plan of implementation: To hire this expert manager we will send our VP of
operations, the new store manager, and HR personnel down one month early to complete
the hiring process. We need one assistant manager and approximately 30 employees to
staff the location. This includes cashiers, bakers, servers, and custodial.
Example, cont.
• Set & outline a company goal: (SMART!)
– Our co. goal is to have a store location setup and running within 5
months of arrival in Cancun
– We plan on investing $1 Million initially and expect to see a return on
this investment within 5 years
– Etc.
• Conclusion:
– Mary’s Market is very excited to start our new venture in Cancun,
Mexico. While we know this is going to be a long process, and large
amount of initial startup capital, we believe that the new location will
give a greater return. This includes the creation of a new, healthy café
and bakery in Mexico, the expansion of our brand name, and a change
in Mexican lifestyle.