C17EB_lecture4_planning+and+managing+strategy

Management in a Global Context

Course Information

• C17EB - Management in a Global Context

• Focus: Planning and Managing Strategy

• Institution: Heriot-Watt University

Recap of Previous Lecture

Organisational Culture (Handy, 1993)

• Types of Organisational Culture:

  • Power Culture: Central figure dominates the culture.

  • Role Culture: Work is influenced by detailed job descriptions and procedures.

  • Task Culture: Focus on task completion rather than formal roles.

  • Person Culture: Activities are centered around individual desires; the system supports individual needs.

Session Contents Overview

• Understand the difference between a plan and a strategy.

• Explain the purpose of planning.

• Consider how different plans fit together.

• Examine the process of planning.

• Explore SMART goal setting.

• Discuss different theories of strategy.

• Reading: Textbook Chapters 7 and 8.

Strategy vs Plan Discussion

• Discussion Prompt:

  • What is a plan?

  • What is a strategy?

  • What is the difference between a plan and a strategy?

Definitions

Planning

• Planning: Iterative task of setting goals, specifying how to achieve them, acting on the plan, and monitoring results (Boddy, p.170).

Strategy

• Strategy: A long-term plan of action designed to achieve an overall aim (Oxford English Dictionary).

Importance of Planning

Reasons for Planning

• Types of Plans Designed:

  • Holiday planning.

  • Education planning.

  • Social events planning (e.g., Night Out).

  • Home projects (e.g., redecorating).

  • Daily tasks (e.g., preparing meals).

Benefits of Planning

1. Clarifies direction: Ensures everyone focuses on crucial aspects.

2. Motivates individuals by demonstrating their contributions.

3. Efficient use of resources.

4. Enhances control and measures progress effectively.

Types of Plans

• Strategic Plans (Strategies): Broad plans addressing overall business direction (Boddy, p.171).

• Business Plan: Proposals for the business involving markets and finances (Boddy, p.171).

• Operational Plans: Detail how objectives are achieved per department (Boddy, p.171).

• Activity Plans: What individual units must do to meet overarching objectives (Boddy, p.173).

• Other Plans: Includes annual plans, standing plans, and recovery plans (Boddy, p.173).

Planning Hierarchy at BBC

• Structure of plans include:

  • Our Plan: The BBC's Path to Net Zero.

  • Annual Plan 2024/25.

  • Diversity & Inclusion strategies.

  • Sustainability strategies.

Process of Planning

Steps in Planning

1. Analyze SWOT (Strengths, Weaknesses, Opportunities, Threats).

2. Conduct forecasting through trend analysis and modeling.

3. Set specific goals.

4. Organize resources needed for goals.

5. Communicate the overall plan.

6. Implement and monitor the plan.

Examples of Goals at BBC

• Different goals across strategic layers: Long-term strategy, annual plans, equality, diversity, and inclusion objectives; sustainability goals.

SMART Goals Framework

• SMART Criteria:

  • Specific: Define exactly what is to be achieved.

  • Measurable: Include criteria to measure progress.

  • Achievable: Set challenging yet attainable goals.

  • Relevant: Align goals with overall business objectives.

  • Timed: Specify a completion timeline for accountability.

Example of a SMART Goal

• Expand operations into three new geographic markets within the next two years:

  • Specific: Expanding operations.

  • Measurable: Into three new markets.

  • Achievable: Through research and execution.

  • Relevant: Facilitates growth.

  • Time-bound: Set for next two years.

SMART Goals Exercise

• Group activity to formulate three SMART goals for completing assignment 1.

Considerations for SMART Goals

• Understand assignment requirements.

• Review course materials and select topics.

• Allocate time for tasks and set deadlines.

• Create outlines and revise drafts as needed.

Theories of Strategy (Boddy, p.195-199)

Types of Strategic Theories

1. Rational: Formal processes and rational evaluation of information.

2. Judgemental: Intuition and objective factors influence decisions.

3. Negotiated: Combines information with power and conflict considerations.

4. Adaptive: Strategies that may evolve from intended to emergent (Mintzberg, 1994).

Adaptive Strategy Example - IKEA

• Origins of furniture sales not part of original strategy.

• Emergent strategy due to market pressures and damages.

Strategic Capabilities

Types of Resources

• Tangible Resources:

  • Land, buildings, equipment, materials, money, patents.

• Intangible Resources:

  • Relational assets and reputational capital (Robinson and Spears, 2018, p.527).

Business Level Strategic Options (Porter, 1985)

Strategic Options

1. Cost Leadership: Minimizing operational costs (examples: Ryanair, Amazon).

2. Differentiation: Offering unique products to maintain customer loyalty (examples: Apple, Coca-Cola).

3. Focus: Targeting niche markets (examples: Saga travel, NFU mutual insurance).

Key Learnings from the Session

• Differentiate between a plan and a strategy with examples.

• Understand benefits of planning: clarify direction, motivate people, resource efficiency, control.

• Explain SMART objectives.

• Familiarity with theories of strategy formation (rational, judgemental, negotiated, adaptive).

• Understand strategic differentiation options in business.