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two panies, usually of similar size, bine their resources to form a new pany ? Acquisition ?Occurs when a larger pany buys a smaller one and incorporates the acquired pany’s operations into its own 22 Competitive Strategies ? Strategies that position an anization in such a way that it will have a distinct advantage over its petition ?Costleadership strategy ? Being the lowestcost producer in an industry ?Differentiation strategy ? Attempting to be unique in an industry within a broad market ?Focus strategy ? Attempting to establish an advantage (cost/differentiation) in a narrow market segment 23 Types of plans 24 Types of Plans EXHIBIT 3 .2 BREADTH TIME SPECIFICITY FREQUENCY OF USE FRAME OF USE Strategic Long term Directional Single use Tactical Short term Specific Standing Shortterm plans Plans that cover less than one year Longterm plans Plans that extend beyond five years 25 Strategic Planning ? Strategic plans Plans that are anizationwide, establish overall objectives, and position an anization in terms of its environment ? Apply broadly to the entire anization ? Establish the anization’s overall objectives ? Seek to position the anization in terms of its environment ? Provide direction to drive an anization’s efforts to achieve its goals. ? Serve as the basis for the tactical plans. ? Cover extended periods of time ? Are less specific in their details 26 Tactical Planning ? Tactical plans (operational plans) Plans that specify the details of how an anization’s overall objectives are to be achieved ?Apply to specific parts of the anization. ?Are derived from strategic objectives ?Specify the details of how the overall objectives are to be achieved. ?Cover shorter periods of time ?Must be updated continuously to meet current challenges 27 Directional versus Specific Plans EXHIBIT 3 .3 28 Specific and Directional Plans ? Specific plans ?Plans that have clearly defined objectives and leave no room for misinterpretation ?“What, when, where, how much, and by whom” (processfocus) ? Directional plans ?Flexible plans that set out general guidelines ?“Go from here to there” (outefocus) 29 SingleUse and Standing Plans ? Singleuse plans(單用計(jì)劃 ) ?A plan that is used to meet the needs of a particular or unique situation ? Singleday sales advertisement ? Standing plan(持續(xù)計(jì)劃 ) ?A plan that is ongoing and provides guidance for repeatedly performed actions in an anization ? Customer satisfaction policy 30 MBO 31 Management by Objectives ? Management by Objectives (MBO) ?A system in which specific performance objectives are jointly determined by subordinates