Strategic Planning Flashcards
What is planning?
An exercise in decision making and focus on objectives which are specific results or desired outcomes
What is a Plan?
A statement of action steps to be taken in order to accomplish the objectives
What is a planning process?
A systematic framework for setting performance objectives and deciding how to achieve them.
What makes a plan strategic?
Long term plan - vision of the future
Outline - not too detailed - involves whole organisation
High level of investments in capital and people
Under constant review
reflect company
What is vision?
Provides guidelines of decision making throughout the organisation taking business aims into account e.g. mission statement
What is the action plan?
Defines steps involved in achieving the organisation’s vision. Covers financial considerations, market development etc.
What are the levels of planning for different managers?
Senior - 3+ long terms
Middle 1-3 short term
front line - immediate
What are examples of strategic decisions?
Organisational objectives
Market analysis
analysis of organisational performance
Formulating and implementing strategies
What are examples of tactical decisions?
Sales and marketing
Stock policies e.g. inventory level
purchasing production decisions
Distribution decisions
What are example of operational decisions?
Sales order processing e.g. invoices Purchasing e.g. deliveries stock control e.g. stock lists delivery control e.g. production control e.g. schedules
What is a SWOT analysis?
Tool for initial steps in strategic planning that identifies strengths weaknesses opportunities and threats.
What is a PEST(LE) analysis?
Analysis for macro environment
e.g. political, economic and social decisions
