Strategic Planning A Practical Guide

by Rea, Peter J.; Kerzner, Harold

• ISBN13: 9780471291978
• ISBN10: 0471291978
• Edition: 1st
• Format: Paperback
• Copyright: 1997-10-15
• Publisher: Wiley

Summary

Strategic Planning A Practical Guide Peter Rea, Ph.D., Harold Kerzner, Ph.D. In today's business world, now more than ever, the only constant is change. With technology producing a steady stream of innovations, consumer preferences shifting rapidly, and world-wide free trade increasing, successful managers face a growing challenge to remain a step ahead of the future. From business students to corporate managers, anyone interested in this discipline will find no resource more insightful and engaging than Strategic Planning: A Practical Guide. From their extensive experience consulting with Fortune 500 companies, Rea and Kerzner have succeeded in crafting the definitive introduction to strategic planning and management policy and strategy-from the grass-roots principles to the practical applications utilized by organizations today. Examining the integral roles of finance, marketing, learning curves, research and development, inventory control, and manufacturing techniques, Strategic Planning presents a comprehensive overview of the development and implementation of contemporary strategic planning models applicable to both small and large businesses. Rather than teaching complex, integrated theory, the authors offer a straight-forward approach to demonstrate strategic planning and management policy techniques. With step-by-step methods on how to apply relevant material, along with discussion questions, and problems designed to highlight the practical application of particular issues, companies can successfully formulate and implement strategic initiatives to: Establish a clear direction for the future Make decisions across levels and functions Improve organizational performance Build teamwork and expertise Aid executives in thinking and behaving strategically And more!

Author Biography

About the Authors Peter Rea, Ph.D., is Chairman of the Business Division at Baldwin-Wallace College. He has provided strategic planning and marketing strategy consultation to organizations including NASA, McDonald and Company, the Ohio Lottery Commission, Oberlin College, Ameritrust Bank, Society National Bank, and the University of Michigan. Harold Kerzner, Ph.D., is Professor of Systems Management and Director of the Project Management/Systems Management Research Institute at Baldwin-Wallace College, as well as President of Project Management Associates, Inc., a consulting company based in Ohio. Dr. Kerzner has published or presented more than sixty engineering and business papers, and his thirteen books include Project Management for Bankers, Operating Guidelines for Project Management, A Dictionary of Terms for Project Management, and Investing in the Corporate Bond Market.

Table of Contents

Preface	ix
Strategic Thinking	1	(34)
The Planet Has Changed and Quickly	1	(1)
The Art of Strategy	1	(3)
The Gap between Theory and Practice: Quantitative Approach, Rationality, and Incrementalism	4	(5)
Getting Started	9	(2)
A Strategic Framework	11	(1)
What Are the Strategic Issues Facing the Enterprise?	12	(2)
What Are the Firm's Competitive Advantages?	14	(1)
What Is the Match between the Firm's Products/Services and Customer Needs, Wants, and Values	15	(1)
What Objectives Would Set the Future Direction of the Enterprise so that Innovation and Growth Could Be Achieved?	16	(6)
What Is the Mission of the Enterprise?	22	(1)
How Will the Firm Integrate Its Strategies and Measure Success?	23	(8)
References	31	(1)
Essay Questions	32	(1)
Multiple-Choice Questions	33	(2)
Strategic Market Management	35	(59)
Marketing Issues and Trends	36	(2)
The Marketing Response	38	(1)
What Is the Match between the Firm's Products/Services and Current and Potential Customer's	39	(4)
What Is the Firm's Competitive Circumstance?	43	(3)
What Are the Company's Strengths and Weaknesses?	46	(2)
Marketing Strategy-What Is the Firm's Enduring Competitive Advantage?	48	(4)
Creating Marketing Strategy	52	(2)
Vertical Integration	54	(3)
How Can a Competitive Advantage Be Sustained Using the 4Ps?	57	(3)
References	60	(1)
Essay Questions	61	(1)
Multiple-Choice Questions	62	(1)
Case Study: Dream Works SKG	63	(4)
Case Study: Eaton Corporation	67	(3)
Case Study: The Purchase of Midlantic Corp. by PNC	70	(2)
Case Study: UNC's Acquisition of Garret Aviation	72	(3)
Case Study: The Wal-Mart Supercenters	75	(3)
Case Study: Kmart	78	(4)
Case Study: Viacom's Acquisition of Paramour Communications, Inc.	82	(3)
Case Study: ITT Corporation	85	(4)
Appendix A	89	(5)
Internal Strengths and Weaknesses	94	(32)
Understanding Strengths and Weaknesses	94	(1)
Situation 3.1: Peco Control Systems	94	(2)
Situation 3.2: The Aerospace Dilemma	96	(1)
Classification of Tangible Resources	97	(3)
Intangible Resources	100	(1)
Functional Classification of Resources	101	(7)
Human-Resource Management Factors	108	(3)
Essay Questions	111	(1)
Multiple-Choice Questions	112	(2)
Case Study: IBM's $3.3 Billion Gamble	114	(2)
Case Study: Microsoft Corporation	116	(3)
Case Study: American Greetings Corporation	119	(3)
Case Study: Figgie International, Inc.	122	(4)
Strategic Market Planning Using Learning Curves	126	(30)
The Learning Curve Concept	127	(18)
Notes	145	(1)
Essay Questions	146	(1)
Multiple-Choice Questions	147	(1)
Case Study: Saber Engineering, Inc.	148	(6)
Case Study: Microtech Devices	154	(2)
The Role of R & D	156	(87)
Innovation Background	158	(1)
New Product Evolution	158	(2)
New Product Success	160	(1)
Portfolio Management	160	(1)
Patents	161	(1)
Nondisclosure Agreements, Secrecy Agreements, and Confidentiality Agreements	161	(1)
Government Influence	162	(1)
Research and Development Ratio	162	(1)
Manufacturing and Sales	163	(1)
Human Behavior	163	(1)
Research versus Development	164	(1)
R & D Benefits	164	(2)
Modeling the R & D Strategic Planning Function	166	(5)
Factors Influencing R & D Strategies	171	(1)
Marketing Involvement	172	(2)
R & D Involvement	174	(1)
Fragmented Markets	175	(1)
Product Life Cycle	175	(1)
The Corporate Image	175	(1)
R & D Position	176	(1)
Planning according to Market Share	176	(1)
The External Environment	177	(1)
Life-Cycle Management	178	(2)
External Influences	180	(4)
Executive Involvement in R & D	184	(2)
Aligning Goals and Objectives	186	(1)
Priority Setting	187	(1)
Working with Marketing	187	(2)
Planning for R & D	189	(2)
Location of the R & D Function	191	(1)
Scheduling	192	(3)
Classification of R & D Projects	195	(2)
Contract R & D	197	(4)
Strategic Selection of R & D Projects	201	(8)
Strategy Readjustment	209	(1)
Project Termination	210	(1)
Strategic Budgeting for R & D	211	(2)
Controlling Costs	213	(1)
Life-Cycle Costing (LCC)	214	(4)
Integrating R & D into the Strategic Plan	218	(8)
Notes	226	(2)
Essay Questions	228	(1)
Multiple-Choice Questions	229	(4)
Case Study: Garcia Sciences Corporation	233	(1)
Case Study: Corwin Corporation	234	(1)
Exhibit CS5-1	235	(3)
Exhibit CS5-2	238	(2)
Exhibit CS5-3	240	(1)
Exhibit CS5-4	241	(2)
Manufacturing Strategies	243	(40)
Introduction	243	(6)
Critical Issues	249	(1)
Understanding Manufacturing Operations	249	(14)
Personnel Available	263	(1)
Productivity	264	(1)
Trends in Productive Growth	265	(2)
Facility Life Cycles	267	(2)
Environmental Protection	269	(1)
Producibility	269	(2)
Manufacturing Problem Areas	271	(1)
Robotics	272	(2)
Computer-Integrated Manufacturing (CIM)	274	(2)
Notes	276	(1)
Essay Questions	277	(1)
Multiple-Choice Questions	277	(3)
Case Study: LTV Corporation's Joint Venture	280	(3)
Small-Business Strategy	283	(21)
Introduction	283	(1)
Product Marketing	284	(1)
Marketing Strategies	285	(1)
Successful Marketing Plans	286	(3)
The Integrated Strategy	289	(1)
Defining the Business	290	(1)
Strategy Formulation	291	(4)
Evaluation and Selection	295	(2)
Notes	297	(1)
Essay Questions	297	(1)
Multiple-Choice Questions	298	(1)
Case Study: Victoria's Secret	299	(5)
Multinational Strategies	304	(17)
Introduction	304	(1)
Why Go International?	304	(1)
Misconceptions about International Business	305	(1)
Three-Stage Evolution	306	(3)
Designing Entry Strategies	309	(1)
A Planning Model	309	(2)
Choosing Target Markets	311	(3)
Choosing Entry Modes	314	(2)
Monitoring and Revising Entry Strategy	316	(1)
Notes	316	(1)
Essay Questions	317	(1)
Multiple-Choice Questions	317	(1)
Case Study: Bhopal-A Case of Corporate Negligence	318	(3)
Index	321