Planning Flashcards
What is the Strategic Management Process?
STEP 1: Identifying the organisation’s current mission, goals and strategies STEP 2: Doing an external analysis STEP 3: Doing an internal analysis STEP 4: Formulating the strategies STEP 5: Implementing strategies STEP 6: Evaluating results
Why Do Managers Need to Plan?
Establishes coordinated effort
Reduces uncertainty
Planning reduces overlapping and wasteful activities
Planning establishes the goals or standards that facilitate control
What Are Various Types of Strategies?
Corporate Strategy - Stability, Renewal, Growth
Competitive Strategy - Cost Leadership, Differentiation
Functional Strategy
What are corporate strategies?
What businesses the organisation is in
What are some growth strategies?
Concentration
Vertical Integration
Horizontal Integration
Diversification
What are growth strategies
organisation expands the number of markets served or products offered
What are stability strategies?
A corporate strategy in which an organisation continues to do what it is currently doing
What are renewal strategies?
A corporate strategy that addresses declining organisational performance
What are competitive strategies?
An organisational strategy for how an organisation will compete in its business(es)
Cost Leadership Strategy - Competing on the basis of having the lowest costs in the industry
Differentiation Strategy - Competing on the basis of having unique products that are widely valued by customers
Focus Strategy - Competing in a narrow segment or niche with either a cost focus or a differentiation focus
What are functional strategies?
The strategies used in an organisation’s various functional departments to support the competitive strategy
What is a Means-End Chain?
An integrated network of goals in which higher level goals are linked to lower-level goals, which serve as the means for their accomplishment
What are the steps in goal setting?
Review the organisation’s mission and employee’s key job tasks.
Evaluate available resources.
Determine the goals individually or with input from others.
Make sure goals are well-written and then communicate them to all who need to know.
Build in feedback mechanisms to assess goal progress.
Link rewards to goal attainment.
The most popular ways to describe plans are in terms of their:
Breadth (strategic versus tactical)
Time frame (long term versus short term)
Specificity (directional versus specific)
Frequency of use (single use versus standing)
Two types of plans in terms of breadth?
Strategic Plans
Plans that apply to the entire organisation and encompass the organisation’s overall goals
Tactical Plans
Plans that specify the details of how the overall goals are to be achieved
Two types of plans in terms of time frame?
Long-term Plans
Plans with a time frame beyond three years
Short-term Plans
Plans with a time frame of one year or less
