Chapter 10-Planning Flashcards
SMART
Specific
Measurable
Achievable
Relevant
Timed
SWOT
Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
SWOT-Strength
Business should exploit it
Competitive advantage
Examples:Wide product range
Loyal customers
SWOT-Weakness
Makes it hard for a business to achieve their goals.
Gives business a competitive disadvantage.
Examples:High price point
Bad Rep
SWOT-Opportunities
Enable the business to grow and increase.
Business should take advantage.
Example:Increased demand
New product features
Steps for planning
Assess the situation
Set a Goal
Create a plan
Implement the plan
Review the plan
SWOT-Threats
Obstacles that can reduce a business profits and market share
Examples:Rapid changes
High competition
Strategic plans
1-5 years
Senior management
Breaks down mission statement into long term plans.
Tactical plans
1-2 years
Middle management
Breaks down strategic plans into short term plans.
Helps to achieve strategic plans.
Strategic plans Example
Samsung wants to increase their profit by €354 million
Tactical plans examples
Samsung will launch a new smart phone with new features
Operational Plans
0-1 year
All levels of management
Plans for the day to day running of a business
Operational Plans Example
Samsung creates a worldwide campaign when it launches a new product
Mission statement
Description of what a business does and outlines its purpose.
Values and beliefs
Contingency plans
0-1 year
All levels of management
Back up plans for unforeseen events and emergencies
Contingency plans Example
Samsung has another supplier when the main supplier cannot supply certain materials
Manpower planning
0-1
Human resource management
Ensures a business has the correct amount of employees with correct skills and qualifications
Manpower planning Example
Samsung fills job vacancies
Financial plans
0-1year
Financial manager
Prepare cash flow forecasts and predict how much money they’ll receive and spend.
Financial plans Example
Samsung use cash flow formats to let shareholders know if they are able to pay their annual dividend
Planning-Advatages
Reduce future problems
Increase motivation
Benchmarking ((compare their planned targets with actual results let’s business know what changes you make))
Gives a business a sense of direction
