Chapter 3: Planning and Strategic Management Flashcards
mission
a statement of an organization’s fundamental purpose
strategic goal
a goal set by and for an organization’s top management
tactical goal
a goal set by and for an organization’s middle managers
operational goal
a goal set by and for an organization’s lower-level managers
purpose of goals (4)
they provide guidance and a unified direction for people in the org, goal-setting practices strongly affect other aspects of planning, goals can serve as a source of motivation for an org’s employees AND goals provide an effective mechanism for evaluation and control.
KINDS OF GOALS
strategic, tactical and operational
KINDS OF ORGANIZATIONAL PLANS
strategic plan, tactical plan, operational plan
Strategic plan
a general plan outlining decisions about the resource allocation, priorities and action steps necessary to reach strategic goals
Operational plan
a plan that focuses on carrying out tactical plans to achieve operational goals
Tactical plans
it is developed to implement specific parts of a strategic plan
Strategy
a comprehensive plan for accomplishing an organization’s goals
a well-conceived strategy addresses three areas:
distinctive competence, scope and resource deployment
distinctive competence
an organizational strength possessed by only a small number of competing firms
scope
when applied to strategy, it specifies the range of markets in which an organization will compete
strategic management
a comprehensive and ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges
effective strategy
a strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals
resource deployment
how an organization distributes its resources across the areas in which it competes
conglomerates
compete in dozen or even hundreds of markets
most business develop strategies at two distinct levels
business level and corporate level
business-level strategy
the set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market
corporate-level strategy
the set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets
strategy formulation
the set of processes involved in creating or determining an organization’s strategies; it focuses on the content of strategies