ch 5

Question 1

planning

Answer 1

setting goals and deciding how to achieve them

coping with uncertainty by formulating future courses of action to achieve specified results

Question 2

strategy

Answer 2

long-term direction

sets the long-term goals and direction for an organization. it represents an “educated guess” about what long-term goals or direction to pursue for the survival or prosperity of the organization

Question 3

strategic management

Answer 3

formulation and the implementation of strategies and strategic goals

involving all managers in strategy

derives from an organization’s mission and vision

Question 4

plan

Answer 4

a document that outlines how goals are going to be met

Question 5

business plan

Answer 5

a document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success

Question 6

why are planning and strategic management important

Answer 6

provide direction and momentum

encourage new ideas

develop a sustainable competitive advantage

Question 7

competitive advantage

Answer 7

the ability of an organization to produce goods or services more efficiently than its competitors, thereby outperforming them

Question 8

sustainable competitive advantage occurs when…

Answer 8

an organization is able to get and stay ahead in four areas

1. responsiveness to customers
2. innovation
3. quality
4. effectiveness

Question 9

goals (objectives)

Answer 9

a specific commitment to achieve a measurable result within a stated period of time

Question 10

short-term goals

Answer 10

(aka tactical or operational goals)

generally span 12 months and connected to strategic goals in a hierarchy known as a means-end chain

Question 11

long-term goals

Answer 11

(aka strategic goals)

tend to span 1 to 5 years and focus on achieving the strategies identified in a company’s strategic plan

Question 12

operating plan

Answer 12

a plan that breaks long-term output into short-term targets or goals

turns strategic plans into actionable short-term goals and action plans

Question 13

action plan

Answer 13

defines the course of action (the tactics) needed to achieve a stated goals

contains a project date for completing the desired activities for each tactic

Question 14

contingency plan

Answer 14

responses to possible future events that could threaten a company’s operations

Question 15

SMART goals

Answer 15

Specific
Measurable
Attainable
Results-oriented
Target date

Question 16

four steps of management by objectives…

Answer 16

1. jointly set objectives
2. develop an action plan
3. periodically review of performance
4. make performance appraisal and reward the employees according to results

Question 17

cascading goals - making lower-level goals align with top goals

Answer 17

top and middle management must be committed

it is best to cascade goals (be linked consistently down through the organization)

Question 18

the planning/control cycle

Answer 18

1. make the plan
2. carry out the plan
3. control the direction by comparing the results with the plan
4. control the direction in two ways
   a) by correcting deviations in the plan being carried out (return to step 2) or
   b) by improvising future plans (go to step 1 to start over)

Question 19

3 steps to keep an open mind and suspend judgement…

Answer 19

1. make a list of your current tasks, projects, or commitments at school or work
2. for each task listed in step one, identify the key moments it would be important to be open-minded and suspend judgement
3. for each of these moments, think of how you might apply the four key skills of being open minded