unit 3 management activities - planning Flashcards
what is planning ?
the setting down of specific goals and objectives and putting in strategies that allow the firm to chieve them
what is a mission statement ?
sets out the vision of the business
what is a contingency plan ?
a back up plan to take account of unforeseen events, to prevent the closure of the business, or disruption to supply
what is a strategic plan ?
a long term plan for the major objectives of the business. prepared by senior management to ensure the long term profitability of the firm. it involves taking the mission statement and backing it up with plans
what is a tactical plan ?
the strategic plan is broken down into smaller tactical short term plans, devised by middle management. these plans achieve operations which makes the strategic plans goals possible
what is manpower planning ?
a plan for the HR’s of business. sets out the number of staff required, type of staff. putting the right number of people, with the right skills in the right place, at the right time to achieve the goals of the business
what is a SWOT analysis
a strategic planning technique. used to assess the business in terms of strengths, weaknesses, opportunities and threats
SWOT - strength
internal attributes and resources that support successful outcomes of a business, which can be developed into competitive advantages
eg USP, brand name, product design, product features, price , social media presence, market share, skilled employees/ workforce
SWOT- weakness
internal aspects of a business which are under developed and could damage the success of the business, which may mean that they are behind some of their competitors in some aspects
eg high input costs, lack of skilled workers, limited product range , poor brand recognition, no online presence , poor customer service, lack of investment in R&D
SWOT - opportunity
external factors which a business could use to its advantage, which have the ability to benefit the business
eg changes in legislation , larger trading blocs/removal of trade barriers, changes in consumer demand, change in trends , changing exchange rate
SWOT - threat
external factors that could jeopardise the business
eg new competitors entering the market, changes in legislation, shortages in important raw materials, changes in exchange rates, changes in taxation laws, more trade barriers
importance of planning - SWOT analysis
the initial step in the planning process. THE aim of a business is to maximise its strengths and opportunities while minimising its weaknesses and threats
importance of planning- mission statement
a visionary statement outlining who the business is, what it does and where it is going. An insight to the stakeholders into core values and the culture of the business
importance of planning- strategic planning
a long term plan covering over 5 years, drawn up by senior management, outlines how the long term goals of the business are to be achieved
importance of planning- tactical planning
short term plan which breaks down the strategic plan into shorter more manageable periods. deals with the now part of the plan