Chapter 9 - Corporate Planning and Implementation Flashcards
Corporate Plan
A plan containing details of a business’s central objectives and strategies to achieve them.
Corporate Planning
The process used by companies to set long-term plans to meet certain objectives, such as business growth and higher return on capital employed.
Internal Factors Influencing Corporate Plan
1) Financial Resources
2) Operating Capacity
3) Managerial Skills and Experience
4) Employee Numbers and Skills
5) Culture of Organisation
External Factors Influencing Corporate Plan
1) Macro Economic Conditions
2) Central Bank and government Economic Policy Changes.
3) Likely Technological Changes
4) Competitors Actions
Corporate Culture
The values, attitudes and beliefs of the people working in an organisation that affect the way they interact with each other, and with external stakeholders.
Power Culture
A Culture that concentrates power among just a few people.
Role Culture
A culture in which each member of staff has clearly defined job title and role.
Task Culture
A Culture based on cooperation and teamwork.
Person Culture
A Culture in which individuals are given the freedom to express themselves fully and make decisions for themselves.
Entrepreneurial Culture
A culture that encourages management and workers to take risks, to come up with new ideas and test out new business ventures.
Changing Corporate Culture
1) A traditional family firm
2) Product Led Business
3) Recently privatized business
4) A takeover
5) Declining profits and market share
Transformational Leadership
The leader works with teams to identify the need for change, creates a vision to inspire people to accept change and implements change with the cooperation of the team.
Change Management
Planning, Implementing, Controlling and Reviewing the movement of an organisation from its current state to a new one.
Business process re-engineering
Fundamentally rethinking and redesigning the process of a business to achieve a dramatic improvement in performance.
Project Champion
A person appointed to support a project and drive it forward by explaining the benefits of change and assisting and supporting the team putting change into practice.
Project Groups
Groups created by an organization to address a problem that requires input from different specialists.
Promoting Change
1) Establish a sense of urgency
2) Create an effective project team to lead the change
3) Develop a vision and a strategy for change
4) Communicate this change vision
5) Empower people to take action
6) Generate short-term gains from change that benefit as many people as possible
7) Consolidate these gains and produce even more change
8) Build change into the culture of the organization so that it becomes a natural process.
Resistance To Strategic Change
1) Fear of the Unknown
2) Fear of Failure
3) Losing something of value
4) False beliefs about the need for change
5) Lack of trust
6) Inertia
Contingency Plan
A plan for preparing an organisation’s resources for unlikely events
Crisis Management
The process of dealing with a sudden emergency event
Continuity Planning
Preparing resources so that the business can continue operations after a major crisis.
