#1.3 : The Importance of Planning Concept in Business Success Flashcards
It is the process that involves the setting of an organization’s goals, establishing strategies for accomplishing those goals, and developing actions.
Planning
3 other definitions of planning
It involves the identification of the company’s mission and objective, bridges the gap from where we are to where we want to go, and determines the resources that can be utilized.
Difference of goals and plans
A goal is the target and desired ends, and should be in line with the SMART criteria. While, a plan is the action or means used by administrators/managers to reach the goal.
It is one of the most structured and used planning methods to evaluate a business venture.
SWOT Analysis/Matrix
helpful + internal
Strengths
helpful + external
Opportunities
harmful + internal
Weaknesses
harmful + external
Threats
A type of plan that establishes the organization’s overall goals ; broad scope.
Strategic plan
A type of plan that is applied to a particular unit, department, or sector only ; narrow scope.
Operational plan
A type of plan that goes beyond three years, and must be understood by everyone.
Long-term plan
A type of plan that covers one year or less, and must lead toward the attainment of long-term goals.
Short-term plan
A type of plan that is flexible, and the higher up give general guidelines.
Directional plan
A type of plan that is clearly stated and has no room for interpretation.
Specific plan
A type of plan that is applied to infrequent instances, and refers to the strategic plan.
Single-use plan
A type of plan that provides guidance to the different activities that are done repeatedly.
Standing plan
This level of management uses strategic planning, is particular to long-term goals, and defines the organization’s mission and objectives.
Top-Level Management
This level of management uses tactical planning and identifies the several actions to take.
Middle-Level Management
This level of management uses operational planning and identifies the procedures and routine tasks.
Frontline Management
A planning technique that attempts to predict possible occurrences.
Forecasting
2 kinds of forecasting
Qualitative and Quantitative
A planning technique is implemented in situations that are not expected
Contingency
A planning technique that is used for future states of affairs, and is a long-term version of contingency.
Scenario Planning
A planning technique that compares and contrasts other businesses’ techniques.
Benchmarking
2 kinds of benchmarking
Internal and External
A planning technique that includes the people who will be affected and who will implement.
Participatory Planning
It is when all people in an organization make decisions that affect their roles or job.
Decision-making
It is a choice among possible actions.
decision
A type of decision that is repetitive, straightforward, and familiar. It can be handled by a routine approach.
Structured or programmed decision
A type of decision that applies to unfamiliar, unique, and non-recurring problems. It needs a new custom decision.
Unstructured or non-programmed decision
