Read Planning, Strategy, and Competitive Advantage chapter: https://www.academia.edu/41476127/Contemporary_Management
Outline for Chapter 6 – Planning, Strategy, and Competitive Advantage
Outline for Chapter 6 – Planning, Strategy, and Competitive Advantage
Chapter 6 begins with how Toys “R” Us, Inc. uses a transformation strategy by three guiding principles –Easy, Expert, Fair. Toys “R” Us recently closed their stores, including a few in CT.
Read on to see how this company has identified “opportunities and threats”, part of a SWOT analysis, p. 222.
A SWOT analysis is a planning exercise in which managers identity:
S= Strengths WITHIN the organization, like good training programs or excellent customer service.
W= Weaknesses WITHIN the organization, poor cash flow, or a poor marketing plan.
O= Opportunities OUTSIDE the organization, like a law is passed or weather conditions are conducive.
T=Threats OUTSIDE the organization, like competitors or a product goes out of style.
See how Mary Barra used a SWOT analysis when she became CEO of General Motors in 2014 (p. 224).
See Figure 6.1 on p. 215 for the Three Steps in Planning. Be sure you know that a mission statement of a company states “what it does; to whom it does it; and how it does it”.
Read the 4 reasons as to why planning is important, beginning on p. 215.
Formulating business-level strategies includes: low-cost strategy; differentiation strategy; and “stuck in the middle” pp. 226-229.
Read Management Insight on p. 234, to see how Pepsi-Cola used an “unrelated diversification” to acquire Frito-Lay, among other acquisitions. In the news recently, a “spicy” Fritos product was launched. You may want to research how it’s doing.
Goals are discussed on p. 221 with regard to organizations, but as a manager you need to know the 5 characteristics of an effective goal (more on this when we discuss motivation):
1. Are specific and measurable.
2. Have a defined time period.
3. Cover key result areas.
4. Are challenging and realistic.
5. Are linked to rewards.
For example, Melissa a manager, tells Marcus, an employee on a Monday that she wants Marcus to “improve” his productivity. Marcus says, “Sure, no problem”. On Friday, Melissa tells Marcus that she is not satisfied with his progress, but Marcus says that he thought he had improved!
What’s the problem with planning here? You’re right, Melissa did not give Marcus a measurable goal, nor did she tell Marcus the due date. If Melissa had said that she wanted Marcus to sell 5 more cars by Friday, Marcus would have no doubt what he specifically needed to do, and by when. Then on Friday, Melissa would have given Marcus positive feedback if the goal was met, or coached him on how to better achieve his goal (and possibly alter the goal if it was too difficult).
The goal would be: Marcus, you need to increase your car sales by selling 5 more cars by Friday, March 11, 2021.
If goals are properly set, performance reviews can be based on them. It can be motivating to have employees set goals together with the manager, in order for them to accept or “buy-in” to the goals. Employees will take these goals more seriously.
In some organizations, employees fill out their own performance evaluations before meeting with their manager. In reality, there should be no surprises for an employee during a performance review if communication has been on-going with management (the upside-down pyramid).
Have you set a goal that you never attained, like losing weight (need to lose that last 10 lbs!), or saving money? What do you think went wrong? The answer: your personal goals should also follow the above criteria. For example, if you want to save $5,000, you need to have an “end date”.
The goal would be: I want to save $5,000 by December 31, 2021. Or, I want to lose 10 lbs by January 1, 2021.
You should always write your goals down and always have access to them (put them on your mirror or keep them in your wallet). Writing goals makes them more real and makes you feel more “accountable” to meet them. Experts suggest that you write 5 short-term goals and 5 long-term goals. Short-term goals can be 1-6 months, and long-term goals can be 6 months to a year or more. Can you revise your goals? Of course, but keep them written and review them constantly. What are your 5 short-term and long-term goals?
Read about a SWOT analysis on p. 222 (and above in the chapter review). Pick a small store in your area of Connecticut (not a large chain of stores), where you frequently shop, and conduct a SWOT analysis on it. If it’s convenient, you may also interview the manager and employees.
NOTE: Be sure to read the chapter review about SWOT analyses, and examples.
1. Describe the store (be sure it is a small store in your area, NOT BELONGING TO A CHAIN OF STORES, LIKE BIG Y).
2. What are two of its strengths? (label as a and b)
3. What are two of its weaknesses?
4. What are two of its opportunities?
5. What are two of its threats?
Be sure to
>> label all parts of the questions.
>>cite the page number from the text to indicate you read the chapter ( use your own words and put the page number after your point (385)…like this.
>>ask questions throughout your post to encourage other students to respond to your post.
