7-6 Planning at General electric Figure 7.3 CEO C orporate Level COrporate Office Business Level GE GE GE GE NBC Aircraft Lighting Motors Plastics Functional Level Manufacturing Accounting Marketing r& D " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 7-6 Planning at General Electric Corporate Level CEO Corporate Office Business Level GE Aircraft GE Lighting GE Motors GE Plastics NBC Functional Level Manufacturing Marketing Accounting R & D Figure 7.3
7-7 Planning levels o Corporate-level decisions by top managers. Considers on which businesses or markets to be in Provides a framework for all other planning o Business-level: details divisional long-term goals and structure. Identifies how this business meets corporate goals Shows how the business will compete in market .Functional-level actions taken by managers in departments of manufacturing, marketing, etc These plans state exactly how business-level strategies are accomplished " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 7-7 Planning Levels ⚫Corporate-level: decisions by top managers. ◼ Considers on which businesses or markets to be in. ◼ Provides a framework for all other planning. ⚫Business-level: details divisional long-term goals and structure. ◼ Identifies how this business meets corporate goals. ◼ Shows how the business will compete in market. ⚫Functional-level: actions taken by managers in departments of manufacturing, marketing, etc. ◼ These plans state exactly how business-level strategies are accomplished
7-8 Characteristics of plans o Time horizon: refers to how far in the future the plan applies. Long-term plans are usually 5 years or more Intermediate-term plans are 1 to 5 years Corporate and business level plans specify long and intermediate term Short-term plans are less than I year Functional plans focus on short to intermediate term o Most firms have a rolling planning cycle to amend plans constantly. win/MeGraw-Hill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 7-8 Characteristics of Plans ⚫Time horizon: refers to how far in the future the plan applies. ◼ Long-term plans are usually 5 years or more. ◼ Intermediate-term plans are 1 to 5 years. ◆ Corporate and business level plans specify long and intermediate term. ◼ Short-term plans are less than 1 year. ◆ Functional plans focus on short to intermediate term. ⚫Most firms have a rolling planning cycle to amend plans constantly
7-9 Types of Plans sTanding plans: for programmed decisions. Managers develop policies, rules, and standard operating procedures(SOP) e Policies are general guides to action o Rules are a specific guide to action o Single-use plans: developed for a one-time nonprogrammed issue. Usually consist of programs and projects Programs: integrated plans achieving specific goals Project: specific action plans to complete programs Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 7-9 Types of Plans ⚫Standing plans: for programmed decisions. ◼ Managers develop policies, rules, and standard operating procedures (SOP). ◆ Policies are general guides to action. ◆ Rules are a specific guide to action. ⚫Single-use plans: developed for a one-time, nonprogrammed issue. Usually consist of programs and projects. ◼ Programs: integrated plans achieving specific goals. ◼ Project:specific action plans to complete programs