Pertemuan 3.ppt

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Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 8-1

Transcript of Pertemuan 3.ppt

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 8-1

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 8-2

What Is Planning?

• Planning - a primary managerial activity that involves:– Defining the organization’s goals– Establishing an overall strategy for achieving

those goals– Developing plans for organizational work

activities

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Formal Planning

• Formal planning– Specific goals covering a specific time period– Written and shared with organizational members

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Why Do Managers Plan?

• Purposes of Planning– Provides direction– Reduces uncertainty– Minimizes waste and redundancy– Sets the standards for controlling

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Planning and Performance

• Formal planning is associated with:– Higher profits and returns on assets– Positive financial results– The quality of planning and implementation

affects performance more than the extent of planning

– The external environment can reduce the impact of planning on performance

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Elements of Planning

• Goals (also Objectives)– Desired outcomes for individuals, groups, or entire

organizations

– Provide direction and evaluation performance criteria

• Plans– Documents that outline how goals are to be accomplished

– Describe how resources are to be allocated and establish activity schedules

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Types of Goals

• Financial Goals - related to the expected internal financial performance of the organization.

• Strategic Goals - related to the performance of the firm relative to factors in its external environment (e.g., competitors).

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Types of Plans

• Strategic Plans– Establish the organization’s overall goals– Seek to position the organization in terms of its

environment– Cover extended periods of time

• Operational Plans– Specify the details of how the overall goals are to be

achieved– Cover a short time period

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Types of Plans

• Long-Term Plans – Time frames extending beyond three years.

• Short-Term Plans– Time frames of one year or less.

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Types of Plans

• Specific Plans– Plans that are clearly defined and leave no room

for interpretation.• Directional Plans

– Flexible plans that set out general guidelines and provide focus, yet allow discretion in implementation.

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Types of Plans

• Single-Use Plan– A one-time plan specifically designed to meet the

need of a unique situation.• Standing Plans

– Ongoing plans that provide guidance for activities performed repeatedly.

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Traditional Goal Setting• Broad goals are set at the top of the organization.• Goals are then broken into sub-goals for each

organizational level.• Goals are intended to direct, guide, and constrain

from above.• Goals lose clarity and focus as lower-level

managers attempt to interpret and define the goals for their areas of responsibility.

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Exhibit 8-2: The Downsideof Traditional Goal Setting

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• Means-Ends Chain– The integrated network of goals that results from

establishing a clearly-defined hierarchy of organizational goals.

– Achievement of lower-level goals is the means by which to reach higher-level goals (ends).

Maintaining the Hierarchy of Goals

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• Specific performance goals are jointly determined by employees and managers.

• Progress toward accomplishing goals is periodically reviewed.

• Rewards are allocated on the basis of progress towards the goals.

Management By Objectives (MBO)

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Management By Objectives (MBO)

• Key elements of MBO:– goal specificity– participative decision making– an explicit performance/evaluation period– feedback

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Exhibit 8-3:Steps in a Typical MBO Program

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Does MBO Work?

• Reason for MBO Success– Top management commitment and involvement

• Potential Problems with MBO Programs– Are less effective in dynamic environments that

require constant resetting of goals

– Overemphasis on individual accomplishment may create problems with teamwork

– Allowing the MBO program to become an annual paperwork shuffle

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Exhibit 8-4:

Well-Written Goals

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Steps in Goal Setting

1. Review the organization’s mission statement.Do goals reflect the mission?

2. Evaluate available resources.Are resources sufficient to accomplish the mission?

3. Determine goals individually or with others.Are goals specific, measurable, and timely?

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Steps in Goal Setting

4. Write down the goals and communicate them.Is everybody on the same page?

5. Review results and whether goals are being met.What changes are needed in mission, resources, or

goals?

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Contingency Factors in Planning

• Manager’s level in the organization– Strategic plans at higher levels

– Operational plans at lower levels

• Degree of environmental uncertainty– Stable environment: specific plans

– Dynamic environment: specific but flexible plans

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Contingency Factors in Planning

• Length of future commitments– Commitment Concept: Current plans affecting

future commitments must be sufficiently long-term in order to meet those commitments.

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Exhibit 8-5:Planning in the Hierarchy Organizations

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Approaches to Planning

• Establishing a formal planning department– Create a group of planning specialists that help

managers write organizational plans.

– Planning is a function of management; it should never become the sole responsibility of planners.

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Approaches to Planning

• Involving organizational members in the process– Plans are developed by members of organizational

units at various levels and then coordinated with other units across the organization.

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Criticisms of Planning• Planning may create rigidity.

• Plans cannot be developed for dynamic environments.

• Formal plans cannot replace intuition and creativity.

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Criticisms of Planning

• Planning focuses managers’ attention on today’s competition—not tomorrow’s survival.

• Formal planning reinforces today’s success, which may lead to tomorrow’s failure.

• Planning isn’t enough.

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Planning in Dynamic Environments

• Develop plans that are specific but flexible.

• Understand that planning is an ongoing process.

• Change plans when conditions warrant alterations.

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What Is Strategic Management?

• Strategic management - what managers do to develop the organization’s strategies.

• Strategies - the plans for how the organization will do what it’s in business to do, how it will compete successfully, and how it will attract and satisfy its customers in order to achieve its goals.

• Business model - how a company is going to make money.

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Why Is Strategic Management Important?

1. It results in higher organizational performance.

2. It requires that managers examine and adapt to business environment changes.

3. It coordinates diverse organizational units, helping them focus on organizational goals.

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What is the StrategicManagement Process?

• Strategic management process - a six-step process that encompasses strategic planning, implementation, and evaluation.

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Exhibit 9-1: Strategic Management Process

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Strategic Management Process

• Step 1: Identifying the organization’s current mission, goals, and strategies– Mission: a statement of the purpose of an organization

• The scope of its products and services

– Goals: the foundation for further planning• Measurable performance targets

• Step 2: Doing an external analysis– The environmental scanning of specific and general

environments• Focuses on identifying opportunities and threats

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Exhibit 9-2: Components of aMission Statement

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Strategic Management Process

• Step 3: Doing an internal analysis– Assessing organizational resources, capabilities, and activities:

• Strengths create value for the customer and strengthen the competitive position of the firm.

• Weaknesses can place the firm at a competitive disadvantage.

– Analyzing financial and physical assets is fairly easy, but assessing intangible assets (employee skills, culture, corporate reputation, etc.) isn’t as simple.

• Steps 2 and 3 combined are called a SWOT analysis. (Strengths, Weaknesses, Opportunities, and Threats)

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SWOT Analysis

• SWOT analysis - an analysis of the organization’s strengths, weaknesses, opportunities, and threats.

• Resources - an organization’s assets that are used to develop, manufacture, and deliver a product to its customers.

• Capabilities - an organization’s skills and abilities in doing the work activities needed in its business.

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Strengths and Weaknesses

• Strengths - any activities the organization does well or any unique resources that it has.

• Weaknesses - activities the organization does not execute well or needed resources it does not possess.

• Core competencies - the organization’s major value-creating capabilities that determine its competitive weapons.

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Strategic Management Process

• Step 4: Formulating strategies– Develop and evaluate strategic alternatives.

– Select appropriate strategies for all levels in the organization that provide relative advantage over competitors.

– Match organizational strengths to environmental opportunities.

– Correct weaknesses and guard against threats.

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Strategic Management Process • Step 5: Implementing strategies

– Implementation - effectively fitting organizational structure and activities to the environment.

– The environment dictates the chosen strategy; effective strategy implementation requires an organizational structure matched to its requirements.

• Step 6: Evaluating results– How effective have strategies been?

– What adjustments, if any, are necessary?

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Corporate Strategies

• Corporate strategy - an organizational strategy that determines what businesses a company is in or wants to be in, and what it wants to do with those businesses.

• Types of Corporate Strategies• Growth: expansion into new products and markets.

• Stability: maintenance of the status quo.

• Renewal: examination of organizational weaknesses that are leading to performance declines.

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Corporate Strategies (cont.)

• Growth strategy - a corporate strategy that’s used when an organization wants to expand the number of markets served or products offered, through either its current business(es) or new business(es).

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Corporate Strategies (cont.)

• Stability strategy - a corporate strategy in which an organization continues to do what it is currently doing.

• Renewal strategy - a corporate strategy designed to address declining performance.

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Exhibit 9-3: Types of Organizational Strategies

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How Are Corporate Strategies Managed?

• Strategic Business Unit (SBU) - the single independent businesses of an organization that formulate their own competitive strategies.

• BCG matrix - a strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs.

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Exhibit 9-4: BCG Matrix

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The Role of Competitive Advantage

• Competitive strategy - an organizational strategy for how an organization will compete in its business(es).

• Competitive advantage - what sets an organization apart; its distinctive edge.

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What is a Functional Strategy?

• Functional strategy - the strategies used by an organization’s various functional departments to support the competitive strategy.

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Five Competitive Forces

• Threat of New Entrants– The ease or difficulty with which new competitors can enter an

industry

• Threat of Substitutes– The extent to which switching costs and brand loyalty affect the

likelihood of customers adopting substitute products and services

• Bargaining Power of Buyers– The degree to which buyers have the market strength to hold

sway over and influence competitors in an industry

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Five Competitive Forces

• Bargaining Power of Suppliers– The relative number of buyers to suppliers and

threats from substitutes and new entrants affect the buyer-supplier relationship.

• Current Rivalry– Intensity among rivals increases when industry

growth rates slow, demand falls, and product prices descend.

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Exhibit 9-5: Five Forces Model

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The Need for Strategic Leadership

• Strategic leadership - the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization.

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Exhibit 9-6: Effective Strategic Leadership

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Types of Competitive Strategies

• Cost Leadership Strategy– Seeking to attain the lowest total overall costs relative to

other industry competitors

• Differentiation Strategy– Attempting to create a unique and distinctive product or

service for which customers will pay a premium

• Focus Strategy– Using a cost or differentiation advantage to exploit a

particular market segment as opposed to a larger market

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The Need for Strategic Flexibility

• Strategic flexibility - the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision was a mistake.

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Exhibit 9-7: Developing Strategic Flexibility

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Strategies for Applying e-Business Techniques

• Cost Leadership– On-line activities: bidding, order processing, inventory

control, recruitment and hiring

• Differentiation– Internet-based knowledge systems, online ordering and

customer support

• Focus– Chat rooms and discussion boards, targeted Web sites

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Customer Service Strategies

• Giving the customers what they want• Communicating effectively with them• Providing employees with customer service

training

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Innovation Strategies

• Possible Events– Radical breakthroughs in products– Application of existing technology to new uses

• Strategic Decisions about Innovation– Basic research– Product development– Process innovation

• First Mover - an organization that brings a product innovation to the market or uses new process innovations.

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Exhibit 9-8: First-Mover Advantagesand Disadvantages

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Assessing the Environment

• Environmental scanning - the screening of large amounts of information to anticipate and interpret changes in the environment.

• Competitor intelligence - an environmental scanning activity by which organizations gather information about competitors.

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Forecasting Techniques

• Forecasts - predictions of outcomes.• Quantitative forecasting - forecasting that

applies a set of mathematical rules to a series of past data to predict outcomes.

• Qualitative forecasting - forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes.

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Exhibit PM-1: Forecasting Techniques

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Exhibit PM-1: Forecasting Techniques (cont.)

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Benchmarking

• Benchmarking - the search for the best practices among competitors or non-competitors that lead to their superior performance.

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Exhibit PM-2: Steps in Benchmarking

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Allocating Resources

• Resources - the assets of the organization including financial, physical, human, intangible, and structural/cultural.

• Budget - a numerical plan for allocating resources to specific activities.

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Exhibit PM-3: Types of Budgets

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Exhibit PM-4: How to Improve Budgeting

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Scheduling

• Scheduling - detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed.

• Gantt chart - a scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time.

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Exhibit PM-5: A Gantt Chart

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Scheduling (cont.)

• Load chart - a modified Gantt chart that schedules capacity by entire departments or specific resources.

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Exhibit PM-6: A Load Chart

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Scheduling (cont.)

• PERT network - a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each.

• Events - end points that represent the completion of major activities in a PERT network.

• Activities - the time or resources needed to progress from one event to another in a PERT network.

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Scheduling (cont.)

• Slack time - the amount of time an individual activity can be delayed without delaying the whole project.

• Critical path - the longest sequence of activities in a PERT network.

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Exhibit PM-7: Steps in Developing a PERT Network

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Exhibit PM-7: Steps in Developing a PERT Network (cont.)

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Exhibit PM-8: Events and Activities inConstructing an Office Building

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Exhibit PM-9: PERT Network forConstructing an Office Building

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Breakeven Analysis

• Breakeven analysis - a technique for identifying the point at which total revenue is just sufficient to cover total costs.

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Exhibit PM-10: Breakeven Analysis

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Linear Programming

• Linear programming - a mathematical technique that solves resource allocation problems.

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Exhibit PM-11: Production Data forCinnamon-Scented Products

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Exhibit PM-12: Graphical Solution to a Linear Programming Problem

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Project Planning

• Project - a one-time-only set of activities that has a definite beginning and ending point in time.

• Project management - the task of getting a project’s activities done on time, within budget, and according to specifications.

• Scenario - a consistent view of what the future is likely to be.

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Exhibit PM-13: Project Planning Process