Topic 4: Planning Flashcards
why plan
coordinate actions
stimulate actions
set standards
be able to measure
be able to adjust
planning according to the smart framework:
look up what these words stand for and what they mean in practise
specific
measurable
acceptable
realistic
time based
specific
a quantitative element
measurable:
a tool to measure your objective
acceptable:
to the person who gets the objective
realistic:
taking into account external factors
time based:
mention a start and end date
EXAMPLE SMART
specific: we should sell 45% more of this months sales
measurable: we will count the amount of sales and do data analysis
acceptable: as a sales team of acer
realistic: external factors may be competition, time of year (usually people buy computers at the start of a school/work year) and maybe technological advancements
time based: start 10 september, end 30 october
strategical plans (top mgt)
apply to the entire organisation
establish the overall objectives
timeframe=minimum 5 years
medium term plans (middle mgt)
translation of long term plans into 1-2 year plans
supported- communicated by middle managers
short term day to day plans (operational mgt)
translation of long term into daily business practise
3 levels of management: planning
3 planning levels which means 3 deadlines
vision definition
dream - picture of the future in an ideal situation (how will the companies products or services change the world)
long term
global direction
vision characteristics
what we strive for
focused on environment
how do we interact with the world
future dream
from the distant future
can be adjusted
mission (statement) definition
identity - your dna
core values
competitive advantage (other than/ better than)
mission characteristics
what we stand for
focused on organization
what are we
identity values
stems from the past
basically timeless
a mission statement may contain
customers
markets
concern for survival, growth and profit
philosophy
concern for public image
products or services
technology
self concept
concern for employees
the strategically planning organization
swot has been made + current situation analysed
making and choosing strategic plans
main form for strategy (offensive or defensive)
starting point for strategy
direction for strategy
strategy method
strategy choice
main form of strategy
offensive: advertising and sponsoring to promote
defensive: adapt to peoples need to do less physical effort and produce
strategic choice
set out in a strategic plan
choices depend on the organisations market share
market leaders
challengers
followers
specialists
market leaders
largest market share
pioneering role
challengers
just below the top, fighting for market share
often offensive strategy
followers
retain market share
does not want competition with market leader
specialists
serves small segments
responds carefully to customer requirements
the different competitive strategies porter
cost leadership
differentiation strategy
focus strategy
stuck in the middle
cost leadership strategy
efficiency in every aspect offering this advantage to your customers
differentiation strategy (broad)
quality, customer service, being innovative technoloigcal capability and unusal positive brand image
focus strategy:
either cost leadership differentiation in a narrow market segment
stuck between the three
stuck in the middle
direction for strategy
product market combinations
market penetration objective
increase market share
realise economies of scale
steal customers from competitors
sell more to existing customers - upselling
product development objective
sell more products to existing customers
market development
increase range
diversification
increase diversity of brand
diversification is most risk
strategy method
independent
merger
acquisition
outsourcing
licensing
franchising
joint ventures
strategy choice
looking at swot
is the strategy appropriate
is the strategy feasible
is it acceptable
