Day 5: Looking forward …
Planning and Strategic Management
Agenda: Q/A; Exam, Cpt. 6 & 7;
Effective Argument; Next Day
Test Time
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Please put all of your books and papers away
Please do not do anything unethical
30 minutes
Do 3 out of 4 questions
Point form is OK
Put your name on exam and on the booklet
and put them together when you hand them
in – no exam in your booklet – no mark.
Thoughts from Cpt. 6
• “If you fail to plan, plan on failing!!”
• “In preparing for battle I have always
found that plans are useless, but
planning is indispensable.” Dwight D
Eisenhower
• The Future?
– Forecasting: What do we think is going to
happen.
– Contingency: Actions to take if/when
things go wrong
– Scenario: “What if this happens…”
– Benchmarking: External / Internal
comparisons
• Best practices
– HRO
Let’s make a plan …
• Individually, make a list of three career objectives that you
hope to accomplish within five years of graduating. (5
minutes)
• For one of them, write out a contingency planning approach
to help you achieve your objective. (5 minutes)
• For another one, write out a scenario planning approach to
help you achieve your objective. (5 minutes)
• For the third, write out a benchmarking or best practices
planning approach to achieve your objective. (5 minutes)
• Get in your groups to discuss your planning approaches –
similarities / differences (10 minutes)
• Select a spokesperson to summarize your group’s reflections
Highly Reliable Organizations
1.Preoccupation with
Failure
2.Reluctance to Simplify
Interpretations
3.Sensitivity to
Operations
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HRO - Actions
1. Have people worry about the unexpected and to question takenfor-granted routines.
2. Make people unafraid to question assumptions and to report errors
promptly.
3. Hold reviews of unexpected events no matter how trivial, and do
this frequently and especially right after an occurrence, when
people are more likely to tell the truth and not have time to make
excuses for the failure.
4. Create discomfort in people when things go well, everything is
stable, and there is nothing to challenge because these conditions
promote complacency and breed carelessness and error.
5. Work towards developing variety in peoples’ views of the
organization’s functioning to meet the variety implied in the
spectrum of unexpected events.
6. Help people develop a sense of what the entire operation is doing
at any one moment and what it should
be doing at that moment.
6
Commercial
• Goal setting – SMART goals
– Specific, Measureable, Attainable, Referred to regularly
(written down), Time
Strategy
• “A comprehensive plan
guiding resource allocation
to achieve long-term
organizational goals”
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Topics in Chapter 7
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Competitive Advantage
Strategic Analysis
Strategic Formulation
Strategic Implementation
MVV
SWOT
Porter’s Five Forces Model
Grand or Master Strategies
Porter’s Competitive
Strategies
• Strategic Implementation
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The Strategic Management Process
(chapter 7)
External
3
2
Analyze the
environment
1
Identify the
organization’s
current mission
and objectives
Identify the
opportunities
and threats
6
SWOT Analysis
4
Analyze the
organization’s
resources
7
Formulate
strategies
Implement
strategies
5
Identify
strengths and
weaknesses
Find a NICHE
Internal
Competitive advantage
10
8
Evaluate
results
Group work – in your teams
Case 7 HBC: From Fur to Fendi
• Q1: Porter’s Five Forces (stage 2)
• Q2: Competitive Strategy before / after? (stage 6)
• Q3: Olympic success – now what? (stage 8)
Playing to Win
1. What is your winning
aspiration?
2. Where will you play?
3. How will you win?
4. What capabilities must
be in place?
5. What management
systems need to be in
place?
Presenting an Effective
Argument
Plan
 Begin with the end in
mind (objective)
 Develop supporting
arguments (key points)
Present
 Tell me what you are
going to tell me
 Tell me
 Tell me what you’ve told
me
Without support of facts, yours is just
another opinion.

Construct an Argument

Relevant
1) Evidence must be relevant to
conclusion.

Sufficient
2) Evidence must provide sufficient
support for conclusion.

Acceptable 3) Evidence must be credible.
Is this argument RSA?

My friend and I are starting a new
company and we want to become rich.
A study has found that tall people make
more money than shorter people. To
save money in our organization, we
have decided to hire only people who
are shorter than average height.
I am from Missouri
Next Day
• Cpt. 11: Leadership and Communication
• Then it is break week
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