Chapter 9 Corporate Planning and Implementation Flashcards
1
Q
Corporate planning benefits
A
- Senior managers have clear Focus and sense of purpose
- Strategies chosen with best fit.
- Plans help to communicate the sense of purpose and focus to all stakeholders.
- Control and review process - to determine business performance
- Planning processes allow senior managers to consider organization strengthens and weaknesses
2
Q
Corporate planning limitations
A
- Only rapid if there is a change, the plans are good if nothing changes
- Plans can be made obsolete with internal or external changes that are unexpected
- If a business puts a 5-year plan into effect and then refuses to make any adaptations or variations then there is high inflexiblility that could be disastrous
3
Q
What is the corporate planning process
A
- Setting objectives.
- Deciding on strategies to achieve these objectives.
- Implementing the plant strategies.
- Monitoring and evaluating the results.
4
Q
What are the Internal influences on corporate plan
A
- Financial resources.
- operating capacity.
- managerial skills and experience.
- employee numbers and skills.
- culture of the organization.
5
Q
What are the external influences on corporate plan
A
- Macroeconomic economic conditions.
- Central Bank and government economic policy changes.
- Likely technological changes.
- Competitors actions.
6
Q
What is corporate culture and what are the main types of corporate culture
A
- Power culture: concentrating power amongst just a few people.
- Roll culture: each member of the stuff has a clearly defined job role and title
- Period culture: based on operations and teamwork.
- Person culture: individuals given free room to express themselves and make decisions for themselves.
Entrepreneurial culture: encourages management and workers to take a risk and come up with new ideas
7
Q
List situations were changing corporate culture is essential
A
- When traditional family firm changes to a public limited company.
- Product led businesses need to respond to market conditioners by encouraging worker participation.
- When a government owned business has been privatized and is now profit and customer focus.
- Takeover to fit within newly created larger company.
- declining prophets and market share may be the result of poorly motivated workers, low quality and poor customer service. A person’s based culture might help transform the prospects of the business
8
Q
How to change organizational culture
A
- Concentrate on the positive aspects of the business and how it currently operates, and develop these. This will be much easier and more popular with employees than focusing on just trying to change negative aspects
- Obtain the full commitment of all senior managers. If they cannot or will not change, it might be easier to replace them all together. Unless they key personal give examples of the behavior they expect to see in others change will be difficult to achieve
- Establish new objectives and mission statement that accurately reflects the new values and attitudes being adopted. these need to be communicated to all employees
- Encourage bottom-up participation when discussing how the new culture should change the manner in which decisions are taken.
- Train the staff
- Change the employee reward system to avoid rewarding success using the old culture ways. Ensure that appropriate behaviors is encouraged and receives recognition. People need to be reassured if they adjust to the new culture, they will gain from it
9
Q
What is the importance of corporate culture
A
- It helps determine the normal employee behavior
- It determines how workers and managers should treat each other
- It supports a business’s brand image
- It determines the type of strategic decisions to be made and implemented
10
Q
What is the purpose of a transformation leadership
A
- Influence employees with their own behaviors and qualities.
- Inspire other employees to accept change.
- Demonstrate a concern for the needs and feelings of employees.
- Provides stimulating challenges to employees to encourage them.
11
Q
What is the importance of transformation leadership
A
- Increases chance of successful change.
- Increases flexibility and adaptability to cope with frequent change.
- It Focuses on leading change and not forcing it.
- Improves the employee motivation and Performance.
12
Q
What are the techniques for implementing, managing and controlling change
A
Understanding what it means
- Evolutionary change
- Dramatic change
Recognizing causes of Change
- Technology
- Macroeconomic change
- Legal changes
- Competitors
Understand stages
- 11 steps
- Situation analysis to review coping
Lead Change not just Manage
- New objective established
- Resources allocated
- Take action
13
Q
Manage change versus lead change
A
Manage Change:
- New objectives need to be established that recognizes the for need change
- Resources need to be available for change to be implemented
- Appropriate action needs to be taken to implement the planned changes
Lead Change:
- dynamic leaders who will shake an organization out of its complacency and away from resistance to change (corporate inertia)
- motivation of workers and managers so that changes is seen in a positive force for improving people’s lives
- Ensuring that acceptance of change is part of the culture of the organization
- Get visible support of managers
14
Q
More - Techniques for implementing, managing and controlling change
A
Project groups: created by organization to address problems through numerous specialist
Project Champions: person assigned to support and drive a project for word commerce supports a team to put change into practice
15
Q
Promoting change – Kotter’s strategy
A
- Establish sense of urgency
- Create effective project team to lead the change.
- develop a vision and a strategy for change.
- Communicate this change vision
- Empower people to take action.
- Generate short-term gains from change that benefits as many people’s as possible.
- Consolidated gains and produce even more change
- Build change into the culture of thr organization so that it becomes a natural process
