CH 5: Understanding Planning Flashcards
the first of 4 functions in the management process
planning
what two things does planning involve
-setting goals and deciding how to achieve them
-ensuring the plans are linked to business strategy
3 definitions of planning
Planning is defined as setting goals and deciding how to achieve them
coping with uncertainty by formulating future courses of action to achieve specified results
A plan is a document that outlines how goals are going to be met.
what is a plan
a document that outlines how goals are going to be met.
2 example models of planning
business plan
business model
Business plan
doc outlines firm’s goals, the strategy for achieving them,
and the standards for measuring
success.
Business model
Outlines the need
the firm will fill, the operations of
the business, its components and
functions, as well as the expected
revenues and expenses
what is a strategy/strategic plan
-A large-scale action plan that sets the long-term goals and direction
for an org
a strategy represents an
educated guess abt what must be done in the long term for the survival/prosperity of the org or its principle parts
when are strateguc plans reconsidered
every year due to everchanging business conditions
Strategic management
Process that involves managers from all parts of the org in the formulation/implementation of strategies and strategic goals
From top management to middle to first line
what is strategic management dervien from
orgs mission and vision
Why are planning and strategic management important
Provide direction & momentum
Encourage new ideas
Develop a sustainable competitive advantage
Mission statement
Express the purpose of the org
What is our reason for being
Why are we here
vision statemetnt
A clear sense of the future and the actions needed to get there
What do we want to become
Where do we want to go
value statement
What the company stands for: its core priorities, the values its employees
embody, and what its products contribute to the world
What values do we want to emphasize?
strategic planning managers
done by top managers for the next 1-5 years
tactical planning
done by middle managers for the next 6-24 months
operational planning managers
done by first line managers for the next 1-52 weeks
PLANNING and STRATEGIC MANAGEMENT steps
1-establish the mission and vision and values
2- assess the current reality
3- formulate the grand strategy & strategic, tactical, and operational plans
4- implement the strategy
5- maintain strategic control
top management positions
CEO, president, VP, GM, Division heads
middle management
functional managers, product line managers, department managers
first line managers
unit managers, team leaders, first line supervisors
top management planning
make LT decisions abt direction of the org.
need to pay attention to the env outside the org, be future oriented, deal with uncertain and competitive conditions
