The #1 job of Management …

1. SETTING GOALS & OBJECTIVES PLANNING = “Corporate Strategy is what a company plans, does (and how they do it) to attain their objectives The #1 job of Management… BBB Planning, Goals Strategic Goals & Loblaw Strategy

2. 1. Define Objectives 2. Determine current internal environment 3. Determine future external environment 4. Analyze alternatives 5. Implement and evaluate PLANNING PROCESS BBB Planning, Goals Strategic Goals & Loblaw Strategy

3. Why plan and set goals? 1. 2. 3. 4. 5. BBB Planning, Goals Strategic Goals & Loblaw Strategy

4. Strategic Plan - 3 Questions: BBB Planning, Goals Strategic Goals & Loblaw Strategy

5. Mission (or Vision) StatementBOH - Starbucks case, p. 201; Loblaw Co. • the purpose of the organization; all plans and goals of a company should support its vision • vision / mission statements are established by a company’s board of directors and chief executives • goals come from and support the mission and are developed my management • the longer the term goals, the higher the level of management involvement BBB Planning, Goals Strategic Goals & Loblaw Strategy

6. Loblaw Co. Mission Statement “Loblaw Companies is Canada’s largest food distributor, with operations across the country. Loblaw Companies strives to provide superior returns to its shareholders through a combination of share price appreciation and dividends. To this end, it follows certain fundamental operating principles. It concentrates on food retailing with the object of providing consumers with the best in one-stop shopping for everyday household needs. It maintains a significant program of reinvestment in and expansion of its existing markets. It is highly selective in acquisitions and continues to invest in products and technology. Loblaw Companies seeks long term, stable growth, taking managed risks from a strong balance sheet position”. BBB Planning, Goals Strategic Goals & Loblaw Strategy

7. Loblaw Co. Vision Statement “Loblaw believes that to be successful it must provide consumers with the best in one-stop shopping and continually introduce innovative products and convenient services that meet their [customer's] everyday household needs.” BBB Planning, Goals Strategic Goals & Loblaw Strategy

8. STRATEGY = WAYS OF MEETING YOUR GOALS & FULFILLING THE PLAN BBB Planning, Goals Strategic Goals & Loblaw Strategy

9. Formulating Strategy 1. Business Mission 2a. organizational Analysis 2b. Environmental Analysis 3. Strategy, Planning & Goals Formulating & Implementing Strategy: BBB Planning, Goals Strategic Goals & Loblaw Strategy

10. Levels of Strategy: “the plan” (p. 210-11) 1. Corporate Strategy: 2. Business Strategy: 3. Functional Strategy / Plans: BBB Planning, Goals Strategic Goals & Loblaw Strategy

11. Implementing Strategy Matching the organizations strengths with its’ environment; organizing and allocation resources STRATEGIC DIRECTIONS: Cost Leadership Concentration market penetration; market development Differentiation Diversification Vertical integration Horizontal integration Cooperation; strategic alliances; joint ventures Restructuring: downsize & divestiture Formulating & Implementing Strategy: BBB Planning, Goals Strategic Goals & Loblaw Strategy