Chapter 3 - Planning Flashcards
What is planning?
deciding what to do and how to do it
Strategic planning
Deciding how the organization wants to position itself in its future environment and relative to competitors, and then deciding how to achieve that position.
enables an organization to examine where it is now (Point A), decide where it wants to be in the future (Point B), and make decisions to get there (from Point A to Point B).
Vision
What the organization wants to be in the long- term future.
Goal
An important, specific, intended target or desired outcome that can be measured to determine how well it was achieved.
Do HCOs use top-down or bottom-up planning?
they avoid top-down planning and instead planning is partly bottom-up
strategic thinking
the mental process of analyzing and synthesizing information to create a strategy to achieve a goal.
mission
The purpose of an organization; why the organization exists.
strengths
An organization’s abilities, assets, and competencies that create strategic advantages.
weaknesses
An organization’s flaws, shortcomings, and liabilities that create strategic disadvantages.
opportunities
Favorable events, elements, and situations in the environment that an organization could exploit for its strategic gain.
threats
Unfavorable events, elements, and situations in the environment that could harm an organization.
SWOTs
Strengths, Weaknesses, Opportunities, and threats.
stakeholders
People and organizations that have a stake (interest) in what an HCO does and that could affect the HCO.
strategy
A pattern of ideas used to attain and sustain competitive advantage over rivals.
low-cost strategy
an HCO would drive down its costs as low as possible (to sell products and services at prices lower than its competitors’). For example, the HCO would not offer high-end features and upscale comforts. The HCO’s facility would not be spacious and attractive, but its costs and prices would be low.
