Chapter 3: Strategic Planning, Problem Solving and Decisions Flashcards
Strategic Planning =
strategies + tactics + objectives
Defines the optimal desired future state(mental picture)of what the organization wants to achieve over time
Vision Statement
Defines the present state or purpose of an organization Answers: What it does; Who does it for; and How it does what it does.
Mission Statement
Vision/Mission, which is for Present/Future?
Mission - present
Vision - future
What is the Strategic Planning Process
ESSE
- Environmental Scanning
- Strategy Formulation
- Strategy Implementation
- Evaluation and Control
Meaning of SWOT
Strengths, Weaknesses, Opportunities & Threats
Purpose is to develop strategies to convert Weaknesses into Strengths and Threats into Opportunities.
SWOT Analysis
A form of situational analysis which is the most important part of the strategic planning process.
SWOT Analysis
are within the control of the organization – done well or not so well
Internal Factors (Strengths, Weaknesses)
are beyond the control of the organization – things with a positive or negative impact.
External Factors (Opportunities and Threats)
Objective should be SMART
Specific Measurable Attainable Reasonable Time-bound
What is the meaning of MBO?
Management by Objectives
are targets for performance driven by the missions of the organization
Objectives
a process of top/down; bottom/up shared goal setting
Management by Objectives
What are the three strategies? Cite from largest to smallest
Corporate Strategies
Business Strategies
Functional Strategies
Strategic Planning and Business Cycle Phases
IB-GES
Introduction Basic Financial Planning Growth Externally Oriented Planning Strategic Management
Advantages of Strategic Management
- Establishment of a mission-driven organization
- Clear sense of a strategic vision
- Understanding of the external environment
Disadvantages of Strategic Management
Linear process with managerial implications:
- Human unfamiliarity awareness as to logical and sequential processes
- Interdependent behaviors
- Battle between big and small picture
Problem Solving
Unprogrammed decisions
Group decision making
Strategic Alternatives
Run
Growth
Fix
Management Science
Programmed Decisions
Unprogrammed Decisions
uncertainty and complexity
Unprogrammed decisions
brainstorming, nominal group thinking, delphi technique
Group decision making
meeting standards
Run
presence of opportunities
Growth
turnaround an unperforming function
Fix
