Planning and decision making in an organization n nTasks and structure of planning nStrategic planning nTools for determining strategic areas and selecting strategies nTactical and operational planning nDecision Making Tasks and structure of planning nThe organization's planning system can be differentiated into: nplanning the organization's vision, nstrategic planning, ntactical and operational planning, nplanning results and liquidity. •Partial complexes of a planning system • •Planning the organization's vision • • •Planning results • and •liquidity • • • •Strategic planning • •Tactical and operational planning • Tasks and structure of planning nDepending from which level you derive the planning of the follow-up plans, we distinguish: nretrograde (top-down), nprogressive (bottom-up), ncounterwise (top-down/bottom-top). Retrograde and progressive planning •Planning level 1 •Planning level 2a •Planning level 2b •Progressive planning •(bottom – up) •Planning level 1 •Planning level 2a •Planning level 2b •Retrograde planning •(top – down) Counterwise planning •Planning level 1 •Planning level 2a •Planning level 2b •Counterwise planning Strategic planning (mainly for entreprises) n Strategic areas must meet the following requirements: nthe strategic area must have a separate market task defined; individual regions must not overlap or be dependent on external markets (do not compete externally); nthe product or group of products of one area of the enterprise is independent of the products of other areas (they do not compete within the enterprise); na product or product group of a given region must be assigned a range of the most important competitors. nMacro – environment – wider environment, social, political and economic setting in which organisations operate. nCompetitive environment – including company, its immediate competitors and customers ( Porter 5 forces) •Source: Oxford college of marketing) Macro-economic environment – methods of analysis nPolitics ngovernement type and policy, funding grants nEconomy nInflation and interest ates nLabour and energy costs nSocial nPopulation, education, media nLifestyle, fashion, culture nTechnology nEmerging technologies, web nInformation and communication nLegal nRegulations and standards nEmployment law nEnvironment nWeather, green and ethical issues nPollution, waste, recycling n n •PESTLE analysis Competitive environment n nPorter´s five forces nStrategic group mapping n(zdroj: Oxford Professional Education Group) Porter´s 5 forces - Rivalry among existing companies nthis rivalry is likely to be most intense where a number of conditions prevail: nWhere the competitors in the industry are roughly evenly balanced in terms of size and/ or market share. nDuring periods of low market growth nWhere exit barriers are high. nWhere product differentiation is low nWhere fixed costs are relatively high. n Porter´s 5 forces – The threat of market entry nOrganistaion should also consider the potential for new entrants to emerge. Entry barriers can be low where the following hold: nCost of entry are low nExisting or new distribution channels are open to use nLittle competitive retaliation is anticipated. nDifferentiation is low nThere are gaps in the market. n Porter´s 5 forces – The threat of substitutes nSubstitution can increase competitiveness of an industry for a number of reasons. nBy making existing technologies redundant nBy incremental product improvement Porter´s 5 forces - Bargaining power of suppliers nSuppliers tend to have more bargaining power where the following hold: nSuppliers are more concentrated than buyers nCost of switching suppliers are high nSuppliers´offerings are highly differentiated. Porter´s 5 forces - Bargaining power of buyers nBuyers tend to be more powerful in the supply chain where the following is true: nThey are more concentrated than sellers nThere are readily available alternative sources of supply nBuyers switching costs are low. Porter´s 5 forces - Competitivness drivers nWhere the following industry characteristics are present, expect greater levels of competition: nThere is little differentiation between offers nIndustry growth rates are low nHigh fixed costs need to be recovered nHigh supplier switching costs nLow entry barriers nHigh exit barriers Map of strategic groups nStrategic group is composed of firms within a industry following similar strategies aimed at similar customers or customers groups. nVariables for the composition of the map of strategic groups: nSales nSize of the company nProduct range nPricing nDistribution nTargeting and segmentation nEtc. nThe identification of strategic groups is fundamental to industry analysis nUnderstanding the dynamics of existing strategic groups can be productive to understand their vulnerabity to competitive attack. Mapa strategických konkurenčních skupin n •Product range(number of products) •Price •Dumping •Medium •High •1000 •3000 •5000 A B C D E F Customer analysis nWhat we need to know about customer ( market research): nCurrent information: nWho are the prome market targets? nWhat gives them value? nHow can they be brough closer? nHow can they be better served? nFuture information: nHow will customers and their need and requirement change? nWhich new customers should we pursue? nHow should we pursue them? Current customers nThe roles of current customers may differ as follows: nThe initiator nThe influencer nThe decider nThe purchaser nThe user Future customers nTypes of change essential to customer analysis: n1) Changes in existing customers: their wants, needs and expectations. n2) Changes come from new customers emerging as potentialy more attractive targets. ( change in living standars etc.) Competitor analysis n„If you know your enemy as you know yourself, you need not fear the result of a hundred battles“ (Sun Tzu, 4th century BC) nCompetitive benchmarking – the process of measuring company´s strategies and operations against „ best-i-class“ companies, both inside and outside your own industry. n4 steps of benchmarking: nIdentifying who to benchmark against nIdentifying what aspects of business to benchmark nCollecting relevant data to enable processes and operations to be compared nComparison with own processes Relation between external and internal environment. nSource: Key Drivers for Quick SWOT Analysis, http://2012books.lardbucket.org Výsledek obrázku pro external analysis Tools for determining strategic areas and selecting strategies nProduct life cycle •introduction •growth •maturing •saturation •degeneration •time Tools for determining strategic areas and selecting strategies nPortfolio analysis nCash Cows nStars nQuestion Marks nDogs nStrategy ndefensive noffensive ndisinvestment nconsolidation ngrowth Boston matrix • • • • •SO4 • •SO2 • •SO7 •SO3 • • •SO6 •„Stars“ • „Cash Cows“ •„Dogs“ •0,1 •1 •10 •-5 •10 •25 •% •Relative market share •low •high •„Question Marks“ Tactical and operational planning nThe subject of planning is divided into: nplanning the construction of the organization, nprogram planning, nprocess planning in an organization. n nAccording to the planning horizon, it is divided into: nlong-term plans, nmedium-term plans, nshort-term plans. Tactical and operational planning nDepending on the extent of planning, the plans are broken down into: nsummary plans and npartial plans. n nDepending on the degree of detail of the plan and measure of awareness of the planning horizon, we divide them into: nglobal plans and ndetailed plans. n nPlanning Compensation Act Decision making nAccording to the completeness of the environmental status data in the decision model, we differentiate these decision-making situations: nunder conditions of certainty nunder conditions of risk nunder conditions of uncertainty Result and decision matrix •Result matrix • •State area • •Action area • •S1 S2 ……………………….… Sn • • •a1 •a2 •. •. •. •am • • • • e11 e12 ……………….. e1n • e21 e22 ……………….. e2n • . • . • . • em1 em2 ………………. emn • • • •Decision matrix • •State area • •Action area • •S1 S2 ……………………… Sn • • •a1 •a2 •. •. •. •am • • • • u11 u12 ……………… u1n • u21 u22 ……………… u2n • . • . • . • um1 um2 ……………… umn • • •