Essentials Of Contemporary Management, Chapter 6

Front 1

Three Major Steps in the Planning Process

Back 1

1) determining an org.'s mission and major goals
2) chosing strategies to realize the goals
3) selecting the appropriate way of organizing resources to implement the strategy

Front 2

Planning

Back 2

identifying and selecting appropriate goals and courses of action

Front 3

Strategy

Back 3

a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals

Front 4

Planning is both a ________ and a _________ process.

Back 4

Goal-making, strategy-making

Front 5

Mission Statement

Back 5

a broad declaration of an org's purpose that identifies the org's products and customers and distinguishes the org from it's competitors.

Front 6

Where planning takes place in management:

Back 6

Corporate, business/division, departmental/functional

Front 7

Division

Back 7

a business unit that has its own set of managers and functions or depts and competes in a distinct industry. (GE Aircraft, GE Motors)

Front 8

Divisional Manager

Back 8

managers who control the various divisions of an organization

Front 9

Corporate-level plan

Back 9

top mgmt's decisions pertaining to the org's mission, overall strategy, and structure

Front 10

Corporate-level strategy

Back 10

a plan that indicates in which industries and national markets an organization intends to compete

Front 11

Business level plan

Back 11

divisional managers decisions pertaining to divisions long-term goals, overall strategy, and structure

Front 12

Business-level strategy

Back 12

a plan that indicates how a division intends to compete against its rivals in an industry

Front 13

Function

Back 13

a unit or department in which people have the same skills or use the same resources to perform their job

Front 14

Functional Managers

Back 14

managers who supervise the various functions, such as manufacturing, accounting, and sales within a division

Front 15

Functional-level plans

Back 15

functional manager's decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals

Front 16

Functional-level strategy

Back 16

a plan that indicates how a function intends to achieve its goals

Front 17

Who plans?

Back 17

Top managers

Front 18

Time Horizon

Back 18

the intended duration of a plan

Front 19

Long term plan length

Back 19

5 years or more

Front 20

Intermediate plan length

Back 20

1-5 years

Front 21

Short term plan length

Back 21

One year or less

Front 22

Corporate and business goal length?

Back 22

long and intermediate

Front 23

Functional goals length?

Back 23

intermediate and short term

Front 24

rolling plan

Back 24

a plan that is updated and amended every year to take account of changing conditions in the external env.

Front 25

UPS/Fed Ex example Point?

Back 25

developing an IT system that constantly improve efficiency and customer service

Front 26

Standing plans

Back 26

used in situations in which programmed decision making is appropriate

Front 27

Policy

Back 27

general guide to action

Front 28

Rule

Back 28

formal, written guide to action

Front 29

Standing Operation Procedure

Back 29

written instruction describing the exact series of actions that should be followed in a specific situation

Front 30

Single Use plans

Back 30

developed to handle nonprogrammable decision making in unusual or one of a kind situations

Front 31

Programs

Back 31

integrated sets of plans for achieving certain goals

Front 32

Projects

Back 32

specific action plans created to complete various aspects of a program

Front 33

Why Planning is Important:

Back 33

1) get managers to participate in decision making
2) Gives direction & purpose
3) helps coordinate diff. functions and divisions to go in same direction
4) device for manager control

Front 34

Effective plans should have 4 qualities:

Back 34

unity
continuity
accuracy
flexibility

Front 35

Unity

Back 35

at any one time, only one central, guiding plan is put into operation to achieve a goal

Front 36

Continuity

Back 36

planning is ongoing process in which managers continually modify plans at all levels so they fit together

Front 37

Accuracy

Back 37

managers need to make every attempt to collect and utilize all info at their disposal in planning

Front 38

Flexibility

Back 38

needed so that plans can be altered and changed if situation changes

Front 39

Defining a business questions:

Back 39

1) Who are the customers?
2) What needs are being satisfied?
3) How are we satisfying the needs?

Front 40

Mattel example point?

Back 40

Companies need to listen closely to their customers and decide how best to meet their changing needs and preferences

Front 41

Strategy Formulation

Back 41

analysis of an org's current situation followed by the development of strategies to accomplish its mission and achieve its goals

Front 42

SWOT Analysis

Back 42

a planning exercise in which managers identify org. strengths (S), weaknesses (W), environmental opportunities (O) and threats (T)

Front 43

Campbell Soup Example Point?

Back 43

SWOT analysis to deal with issues it had

Front 44

Principle Corp. Level Strategies that managers use to help a company grow, keep it on top, and stop decline:

Back 44

1) Concentration on a single business
2)diversification
3) international expansion
4) vertical integration

Front 45

An organization benefits from pursuising any of the strategieies only when the strategy helps:

Back 45

...further increase the value of the org's goods and services for customers

Front 46

diversification

Back 46

expanding operations into a new business or industry and producing new goods and services

Front 47

related diversification

Back 47

entering a new business or industry to create a competitive advantage in one or more of an org's existing divisions or businesses

Front 48

synergy

Back 48

performance gains that result when individuals and departments coordinate their actions

Front 49

unrelated diversification

Back 49

entering a new industry or buying a company in a new industry that is not related in anyway to an org's current business or industry

Front 50

portfolio strategy

Back 50

apportioning financial resources among divisions to increase financial returns or spread risks among diff. businesses

Front 51

global strategy

Back 51

selling the same standardized product using the same basic marketing approach in each national market

Front 52

multidomestic strategy

Back 52

customizing products and marketing strategies to specific national conditions

Front 53

Gillete example point:

Back 53

pursues both global strategy and a multi-domestic strategy to gain benefits from both

Front 54

vertical integration

Back 54

a strategy that allows an org. to create value by producing its own inputs or distributing and selling its own outputs

Front 55

Four Business Level Strategies:

Back 55

low cost, differentiation, focused low cost, focused differentiation

Front 56

low cost strategy

Back 56

driving the org's costs down below the costs of its rivals

Front 57

Differentiation strategy

Back 57

distinguishing an org's products from the products of competitors in dimensions such as product design, quality, or after-sales service

Front 58

focused low-cost strategy

Back 58

serving only one segment of the overall market and being the lowest-cost org serving that segment

Front 59

focused differentiation strategy

Back 59

serving only one segment of the overall market and trying to be the most differentiated org serving that segment

Front 60

Two ways depts can add value to an org's products:

Back 60

1) lower the costs of creating value to attract new customers with lower prices
2) finding ways to differentiate it from other companies products