Unit 11.1 Flashcards
Business units that are organized by function:
- Tend to have a single or a very few individual product lines
- Often focused on lowering costs to economies of scale
Fixing profitability to lower levels of the organization more appropriate when…
the SBU has multiple lines of business
Strategic planning below the SBU level is related to the…
specific areas of the business that directly support the overall SBU
Functional plans relate to…
specific disciplinary areas of the business
- can include functions like: Marketing, supply chain management, etc.
Each functional component of the SBU…
needs to interact in ways to produce profits for the organization, regardless of the level of the organization where the business functions exist.
Functional Plans (def)
Strategic plans that focus on implementing the SBU Strategies
Functional planning needs to be…
coordinated across the business unit to ensure that:
- the goals and strategies are consistent
- any functional interdependencies are carefully thought through
Senior and Middle level managers develop…
the courses of action that are necessary to support the goals that are established at the functional level of the organization
Functional Plans (list)
- Aligned to Business Unit Level Planning
- Are highly interrelated across the SBU
- Shorter planning horizons than Corporate and SBU plans but typically extend beyond the upcoming fiscal year
- Drive Budget Development and Staffing Plans
- Examples: Marketing Plans, Production Plans, Capacity plans
The development of Functional Plans are managed by…
a Senior Level Executive Committee
Most common plans are…
tactical plans
Tactical Plans
- Narrow, specific impact on the firm
- Allocation of specific resources to specific tasks or operations
- Short planning horizons
- Examples: Financial Budgets, Production Schedules, Staffing Schedules, Project Work Plans, many more
Tactical plans also referred to as…
Operational Plans
Tactical plans are developed on a…
quarterly, weekly, monthly, daily or hourly schedule
Tactical plans can be developed at…
any managerial level, but are typically developed at lower levels of management and at the team leader level
