Business Strategy Week 1

Question 1

Why is planning important?

Answer 1

-gives direction and coordinates everyone in the org
-helps minimize waste and redundancy
-reduces uncertainty by understanding firms external environment
-establishes goals from the firm to the individual
-involves everyone (higher job satisfaction)

Question 2

What does planning context include?

Answer 2

Includes external and internal environment ( managements vision, culture technology, ip)

-general environmental factors
-communities
-suppliers
-customers
-partners and shareholders
-regulators
-competitors

Question 3

Hierarchy of plans

Answer 3

managements plans filter down through strategic, tactical and operational plans.

Question 4

the role of planning in managing the firm

Answer 4

managements main task

Question 5

the role of planning in managing the firm-planning

Answer 5

-defining goals, establishing strategy, developing plans to coordinate activities.

types - strategic, functional tactical

Question 6

the role of planning in managing the firm-organizing and staffing

Answer 6

-determining who what when and where of tasks
-how they’re groups
-who reports to whom
-who makes decisions

-also recruiting, selecting, training and performance evaluation

Question 7

the role of planning in managing the firm-what is the primary role of management?

Answer 7

planning

Question 8

the role of planning in managing the firm- controlling

Answer 8

process of monitoring performance, comparing it with goals and correcting deviations

Question 9

strategic plans

Answer 9

broadly guiding and positioning the firm relative to the competition;

Question 10

functional plans

Answer 10

that align the goals and direct the strategic activities of the operating units

Question 11

tactical/operational

Answer 11

plans that specify the details of how the operational goals will be achieved

Question 12

residual uncertainty

Answer 12

uncertainty that remains even after planning

Question 13

planning through the hierarchy

Answer 13

-functional structure
-divisional structure

Question 14

functional plans

Answer 14

-business unit level planning
-interrelated across sbu
-shorter planning horizons than corporate and sbu plans but extend beyond fiscal year
-drive budget development and staffing plans
-ex: marketing plans, production plans, capacity plans

Question 15

what does sbu mean?

Answer 15

strategic business unit

Question 16

tactical/ operational plans

Answer 16

-narrow and specific
-allocation of resources to specific tasks
-short planning horizons (timesframes)
ex:
financial budgets
production schedules
staffing schedules
project work plans
more

Question 17

heirarchical vs flat organizations

Answer 17

hierarchical organizations have many levels of managers reporting to managers and tend to be effective in stable environments

flat organizations have fewer levels of middle management. they are more effective in dynamic environemnts because decision making is delegated into operating areas

Question 18

types of managers

Answer 18

-senior managers
-middle managers
-supervisors
-sometimes team leaders

Question 19

types of strategic plans

Answer 19

-corporate
-business unit
-functional