Chapter 3 v.2 Flashcards
The planning process
What is the planning process
How companies control the direction of the company
The planning process
How long is the strategic planning cover
Between 3 and 10 years
The planning process
How long does the Tactical planning cover
One to 3 years
The planning process
how long are operational plans covering
On day to day matters usually for a period of one year
The planning process
What does setting business plan cover
It sets the board direction and methods for the business to reach its goals and objectives.- This will then be implemented.
What is the most effective way of monitoring whether the business plan is on track
By using control systems and models
The planning process
Who does the strategic business plan
The board
The planning process
What is the tactical plan
Implements the key elements of the strategy- include medium- term policies. Usually done by middle maagement
The planning process
What is the third level of the planning process
The operational- covers day to day matters and ensures that strategic goals and objectives are being met. Budgetery control is an import element here.
The planning stage
What should the company identify when implementing business plans?
The objectives of the plan which must be SMART - Specific, measurable, achievable, relevant and time defined
Control systems and models
What are the control systems and models put in place to monitor the implementation of the business plan
- Management accounting
- budgeting
- critical success factors
- key performance indicators
- key risk indicators
- balanced scorecards
- benchmarking
- management by objectives
Control systems and models
What is the management accounting control system and model?
It is budgeting- based on predictions and not facts.
Control systems and models
What is the critical success factor control system and model?
Derived from SWOT. Looks at what the company would like to achieve and determine which in particular are critical to success matters. Most commonly associated with strategic plans based on overcoming rivals
Control systems and models
What is the key performance indicator control system and model?
it shows the company’s strategy whether or not the company is reaching its targets and objectives.
Control systems and models
What two things can key performance indicators be>
Either:
results orientated - the bottom line- sales volume or market share
Effort orientated - number of complaints resolved
Both enable SMART target to be met
Control systems and models
What is the key risk indicator control system and model?
Looks at what can cause issues to the business and how to put controls in place to review the effectiveness and adequacy of controls.
Things such as IT going down, complaints, employee injuries
Control systems and models
What is the balance scorecard control system and model?
It helps companies identify and improve their internal operations to help their external outcomes
Control systems and models
What are the four perspectives of a balance scorecard control system and model?
Internal, customer, learning and growth and financial
Control systems and models
Is benchmarking one of these?
Yes
Control systems and models
What is the management by objectives control system and model?
‘Singing from the same hymn sheet’
It makes sure all targets link up and everyone knows what they are doing and why they are doing it
Management Information System
-information with an organisation can be analysed into what three levels
- Strategic information- Board
- Tactical information- middle management
- Operational information - front line managers
Management Information System
What is the central core of a management information system - will be in exam
The tactical information
Management Information System
What is a management information system
It produces regular reports on every level of management in a company.
Management Information System
What is the main purpose of the management information system
gives managers feedback about their own performance and enables senior managers to monitor the company
