Chapter 4 Flashcards
What is Planning?
Conscious, systematic process of making
decisions about goals and activities that an
individual, group, work unit, or organization
will pursue in the future.
What is the basic planning process?
Step 1 Situational Analysis
Step 2 Alternative Goals and Plans
Step 3 Goal and Plan Evaluation
Step 4 Goal and Plan Selection
Step 5 Implementation
What is situational analysis?
A process planners use, within time and
resource constraints, to gather, interpret, and
summarize all information relevant to the
planning issue under consideration.
What are contingency plans?
Actions to be taken when the initial plans have not
worked well or events in the external environment
require a change.
Describe the process of implementation.
Managers and employees must understand the plan, and have the resources and motivation to implement it.
Successful implementation requires a plan to be linked to other systems in the organization (e.g., budget and reward systems).
What is a strategy?
A pattern of actions and resource
allocations designed to achieve the organization’s
goals.
What is strategic planning?
Set of procedures for making decisions about the organization’s long- term goals and strategies.
What are strategic goals?
Major targets or end results that relate to the long-term survival, value, and growth of the organization.
What is tactical planning?
Set of procedures for translating broad strategic
plans into specific goals and plans that are
relevant to a distinct portion of the organization
(e.g., marketing department).
What is operational planning?
The process of identifying the specific procedures
and processes required at lower levels of the
organization.
What is strategic management?
A process that involves managers from all parts of the
organization in the formulation and implementation of
strategic goals and strategies.
What is an organization’s mission?
An organization’s basic purpose and scope of
operations.
What is a strategic vision?
The long-term direction and strategic intent of a
company. Provides a perspective on where the organization
is headed and what it can become.
What are stakeholders?
Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.
What is benchmarking?
Process of assessing how well one company’s
basic functions and skills compare with those of
another company or set of companies.
Goal of benchmarking is to thoroughly understand
the “best practices” of other firms and to
undertake actions to achieve both better
performance and lower costs.
What is a SWOT Analysis?
A comparison of Strengths, Weaknesses,
Opportunities, and Threats that helps
executives formulate strategy.
What is corporate strategy?
Set of businesses, markets, or industries in which
an organization competes and the distribution of
resources among those entities.
What is a concentration?
A strategy employed for an organization that operates
a single business and competes in a single industry.
What is concentric diversification?
A strategy used to add new businesses that produce
related products or are involved in related markets
and activities.
What is vertical integration?
The acquisition or development of new businesses
that produce parts or components of the
organization’s product.
