foundations of planning Flashcards
what is planning?
planning is the primary management function. it involves defining the organisations objectives or goals, establishing an overall strategy for achieving these goals and developing a hierarchy of plans to integrate and coordinate activities.
criticisms of formal planning
- may create rigidity
- can’t replace intuition and creativity
- focuses attention on today’s success, not tomorrow’s survival
- reinforces success, which may lead to failure
managing for sustainability formal planning
- enables shared understanding of goals and coordinates effort
- improves capacity to deal with change
- reduces overlap and waste
- facilities continuous monitoring for improvement
formal planning and organisational performance (does it pay to plan?)
- higher profits
- higher return on assets
- improved quality of planning
- appropriate implementation
what is strategic management?
what managers do to develop and organisation’s strategies.
what is the importance of strategic management?
- it has a positive impact on organisational performance
- it prepares managers to cope with changing situations
- it guides managers to examine relevant factors in planning future action
what are the steps in strategic management?
- identify the organisations current mission, goals and strategies
- SWOT analysis
- external analysis: opportunities and threats
- internal analysis: strengths and weaknesses - formulate strategy
- implement strategies
- evaluate results
growth strategy
an organisation expands the number of markets served or products offered
- vertical integration
- horizontal integration
- diversification
what is the stability strategy?
organisation continues to do what it’s doing
what is the renewal strategy?
organisation addresses declining organisational performance
- retrenchment
- turnaround
what is a competitive strategy?
a competitive strategy is a strategy for how an organisation will complete in its business
functional strategy
those strategies used by an organisation’s various functional departments to support the competitive strategy
- research development
- manufacturing
- marketing
- human resources-finance
what are the strategic weapons
- customer service
- employee skills and loyalty
- innovation
- quality
- social media
- big data
social media as a strategic weapon
- helps people connect
- reduces costs and/or increases revenue
big data as a strategic weapon
translates business knowledge into improved decision making and performance
management by objectives
- goal specificity
- participative decision making
- explicit time period
- performance feedback
what are the two types of plans?
- strategic (long term, directional and single-use)
- tactical (short term, specific and standing)
what types of planning do top executives do?
mainly strategic a little bit of operational planning
what type of planning do middle-level managers do?
half and half of strategic and operational
what types of planning do middle-level managers do?
mostly operational planning with a little bit of strategic planning
managing for diversity- planning
- setting targets for increasing workforce diversity
- creating strategies to attract diverse workers
- adapt existing strategies to improve workforce diversity
