Chapter 5 Flashcards
What is a goal?
desired future circumstance or condition that the organization attempts to realize
What is a plan?
blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions
What is an MBO
- management by objectives
- managers & employers define goals for every department, project, and person
What is a SWOT?
- strengths, weaknesses, opportunities, threats
- an analysis of all these elements that affect organizational performance
What are the levels of goals and plans? (triangle)
1 - mission statement
2 - strategic goals/plans (senior management)
3 - tactical goals/plans (middle management)
4 - operational goals/plans (lower management)
What is the organizational planning process?
1) Develop the plan - define mission, set goals
2) Translate the plan - define plan/objective, strategy map, contingency plans
3) Plan Operations - define operational goals and plans, set stretch goals, plan for crisis
4) Performance management - management by objectives, performance dashboard, decentralized responsibility
5) Monitor and learn - hold planning and review, hold operational reviews
What is the BCG Matrix?
organizes businesses along two dimensions—business growth rate (how rapidly the industry increases) and market share (business unit has a larger/smaller share than competitors)
BCG Matrix grid includes…
Stars - rapid growth and expansion
Question marks - new ventures, risky, few become stars, and other divested
Cash cows - milk to finance question marks and stars
Dogs - no investment, keep some profit, consider divestment
What are porter’s competitive strategies?
1) Differentiation
2) Cost leadership
3) Focused differentiation
4) Focused cost of leadership
Characteristics of effective goals
- specific and measurable
- a defined time period
- cover key result areas
- challenging but realistic
- linked to rewards
Differentiation
- flexible yet coordinated
- creative flair, “thinking outside the box”
- marketing capabilities
- rewards employee innovation
Cost Leadership
- central authority/tight controls
- easy-to-use manufacturing technologies
- close supervision
Focused Differentiation
- values flexibility, customer intimacy
- empowerment with customer contact
- differentiation strategy directed at particular targeted customer
Focused Cost Leadership
- cost leadership strategy directed at target customer
- detailed control reports
- cost of providing product/service, maintaining customer loyalty
