Exam II Flashcards
Decision Making
Is the cornestore of planning, catalyst that drives the planning process.
Planning
This occurs within an environmental context. (Purpose, Promise, value, and direction).
Purposes of Goals
THEY PROVIDE GUIDANCE AND UNIFIED DIRECTION. Specific and moderately difficult goals can motivate employees. Goals provide an effective mechanism for evaluation and control.
Kind of Goals-Level
Mission statement: Organization’s fundamental purpose(change over time).
Strategic goals: Set by the manager. Focus on broad general goals.
Tactical goals: Set by middle managers. Focus on actions to achieve strategic goals.
Operational goals: Set by lower managers. Focus on short terms issues associated with tactical goals.
Kinds of Goals- Area and Times frames
Area: Organization set for different areas. Ex. Marketing, Finance, Human Resources.
Time: Organization set across doffernet time frames. Ex. Long-term, short-term.
Who is responsible for setting the goals?
Managers
Optimazing
Involves balancing and reconciling possible conflicts among goals.(Talking to lower managers to do things better.)
Kinds of Organizational Plans
Strategic plan: A general plan outlining decisions of resources allocation, prioties and action steps neccessary to reach strategic goals.
Tactical Plan: Plan to achieve tactical goals, developed to implement parts of a strategic plan.
Operational plan: Focuses on carrying out the tactical plans to achieve operational goals.
Time Frmases for Planning
Long-range plan: (Mission statement) Cover many years usually 5 years.
Intermediate plan: 1-5 years plan.
Short-range plan: (Day to day) covers span of 1 year or less.
- actionplan: operation of any other plan.
-reaction plan: reacts to unforseen events.
Responsabilities for planning
Chief Executive: Major roles in planning and implementation.
Executive commitee: Top managers provide input to the CEO and review strategic plans.
Line managment: Provides valuable inside information and excecute the pans developed by top management.
Contingency Planning:
The determination of alternative courses of actions to be taken if an intended plan is unexpectedly disrupted or redendered inappropriate.
Crisis management
The set of procesured the organization uses in the event of a disaster or other unexpected calamity.
Steps of contingecy planning
- Develop plan 2. Implement plan 3. Specify indicators 4. Succesfully complete plan
Tactical Planning
A plan aimed at achieving tactical goals, developed to implemement specific parts of a strategic plan. (Movememts to win the battle).
Major Barrier to goal setting and planning
Inappropiate goal, improper reward system, dynamic and complex environemt, recistance to change, and constrains.
How to overcome the barriers:
Understand the purpose of the goaland planning, communication, and participation. Consistency, revision, and updating. Effective reward system.
Managment by Objective (MBO)
Formal goal setting process involving collabortation between managers and subordinates.
Strategy
A comprehensive plan for accomplishing an organizational goal.
Strategic Managment
A comprehensive and ongoing managment processs aimed at formulating and implementing effective strategies
Effeective Strategy
A strategy that promotes a superior aligment between the organization ans its environment and achievment of strategic goals.
Parts of Strategy
Distinctive Competence: Things that we do better than anybody else.
Scope: Range of markets when we compete.
Resource deployment: How firms distributes its resoruces across the areas.
Business- level strategy
The set of strategic alternatives from which an organization chooses as it conducts business in a paticular industry or market.
Corporate-level strategy
The set of strategic alternatives from which an organization chooses as it managers its operations simulstaneouly across several industry and several market.
Strategy formulation
Is the set of processes involved in creating or determinung tge strategies of the organization. Focuses in the content of strategies.
Strategy implementation
The method by which strategies are executed within the organization. Focuses on the process.
Deliverate Strategy
Is a chosen plan of action implemented to support specific goals.
Emergent Strategy
Is the developed pattern of actions in the absense of missions and goals or despite mission and goals.
SWOT
Strength, Weakness, Opportunities, and Therats
Organizational Strenghts
Skills of capabilities enabling an organization to conceive and implements its strategies. Things that makes us competitive.
Common Strength
is a skill or capability held by numerous competing firms
Competitive pairity
Exist when large number of competing firms can implement the same strategy. (all have them all use them)
Distinctive competence
Is a strenght possessed by a small number of firm. (only a few have and are good at it).
Competitive advantage
Using the previous compentences and strengths
Strategic imitation
Is duplicating anothers competence into a valuable strayegy. Copy and paste an idea/.
Sustain competitive advantage
When someone tries to imitate your strategy but fails to do so.
Organizational Weaknesses
Skill and capabilities that enable and may limit an organization to implement strategies that suport their mission. You have to invest in obtaining strength or modify the mission.
Competitive disadvantge
When a firm is not implementing valuable strategies that other firms are implementing.
Organizational Oportunities
Areas in the environment that if exploided, may generate high performance.
Organizational Threats
Areas in the environment that increases the difficulty of an organization achieving high performance.
Business level strategies
- Porters Generic Strategies
- The miles and snow typology
- Product life cycle strategy
Porters Generic Strategy
- Differentiation Strategy: Seeks to distinguis itself from competitors
- Overall cost leadership strategy: Seeks to gain a competitive advantage by reducing its cost below the competitive firms.
- Focus Strategy: Concentrate on a specific regional market, product line or group of buyers.
Miles and Snow Typology
- Prospector strategy: Encourages creativity and flexibility.
- Defender strategy: Focuses on lowering cost and omproving performanceof current products.
- Analyzer Strategy: Maintains current business and is somewhat onnovative in new business.
- Reactor Strategy: Has no consistent approach to strategy.
Product life cycle
Intruduction, growth, maturity and decline.
