Planning and Organising Flashcards
How do you identify Mission, Goals and Strategies?
(Strategic Man
- Components of Mission Statement
- External Analysis (SWOT)
- Internal Analysis (SWOT)
- Formulate Strategies
- Implement Strategies
- Evaluate Results
Mission Statement Components…
Customers Markets Concerns for Survival, Growth and Profitability Philosophy Concern for Public Image Products or Services Technology Self-Concept (Competitive Advantage) Concern for Employees
Why should managers plan?
Reduces impact of change
Minimise waste and redundancy
Setting standards to facilitate control
Provides direction
What are the criticisms of Formal Planning?
May create rigidity
Can’t replace instinct or creativity
Reinforces success, which may lead to failure
Growth by Concentration…
Increased number of products offered or markets served
Growth by Vertical Integration (Backward)…
Organisation = own supplier
Growth by Vertical Integration (Forward)…
Organisation = own distributor
Growth by Horizontal Integration…
Company grows by combining with competitors
Growth by Diversification (Related)…
Company combines with another company in different, but related industries
Growth by Diversification (Unrelated)…
Company combines with another company in different and unrelated industries
Stability Strategy
Organisation continues to do what its doing
Renewal Strategy
Organisation addresses declining organisational performance
Retenchment Strategy
Short-run strategy used for minor performance problems
Turnaround Strategy
More serious problems needing more extensive measures
What are Strategic Business Units (SBUs)?
When independent businesses formulate their own competitive strategies
