Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/60

Click to flip

60 Cards in this Set

  • Front
  • Back
Three Major Steps in the Planning Process
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
Planning
identifying and selecting appropriate goals and courses of action
Strategy
a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
Planning is both a ________ and a _________ process.
Goal-making, strategy-making
Mission Statement
a broad declaration of an org's purpose that identifies the org's products and customers and distinguishes the org from it's competitors.
Where planning takes place in management:
Corporate, business/division, departmental/functional
Division
a business unit that has its own set of managers and functions or depts and competes in a distinct industry. (GE Aircraft, GE Motors)
Divisional Manager
managers who control the various divisions of an organization
Corporate-level plan
top mgmt's decisions pertaining to the org's mission, overall strategy, and structure
Corporate-level strategy
a plan that indicates in which industries and national markets an organization intends to compete
Business level plan
divisional managers decisions pertaining to divisions long-term goals, overall strategy, and structure
Business-level strategy
a plan that indicates how a division intends to compete against its rivals in an industry
Function
a unit or department in which people have the same skills or use the same resources to perform their job
Functional Managers
managers who supervise the various functions, such as manufacturing, accounting, and sales within a division
Functional-level plans
functional manager's decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals
Functional-level strategy
a plan that indicates how a function intends to achieve its goals
Who plans?
Top managers
Time Horizon
the intended duration of a plan
Long term plan length
5 years or more
Intermediate plan length
1-5 years
Short term plan length
One year or less
Corporate and business goal length?
long and intermediate
Functional goals length?
intermediate and short term
rolling plan
a plan that is updated and amended every year to take account of changing conditions in the external env.
UPS/Fed Ex example Point?
developing an IT system that constantly improve efficiency and customer service
Standing plans
used in situations in which programmed decision making is appropriate
Policy
general guide to action
Rule
formal, written guide to action
Standing Operation Procedure
written instruction describing the exact series of actions that should be followed in a specific situation
Single Use plans
developed to handle nonprogrammable decision making in unusual or one of a kind situations
Programs
integrated sets of plans for achieving certain goals
Projects
specific action plans created to complete various aspects of a program
Why Planning is Important:
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
Effective plans should have 4 qualities:
unity
continuity
accuracy
flexibility
Unity
at any one time, only one central, guiding plan is put into operation to achieve a goal
Continuity
planning is ongoing process in which managers continually modify plans at all levels so they fit together
Accuracy
managers need to make every attempt to collect and utilize all info at their disposal in planning
Flexibility
needed so that plans can be altered and changed if situation changes
Defining a business questions:
1) Who are the customers?
2) What needs are being satisfied?
3) How are we satisfying the needs?
Mattel example point?
Companies need to listen closely to their customers and decide how best to meet their changing needs and preferences
Strategy Formulation
analysis of an org's current situation followed by the development of strategies to accomplish its mission and achieve its goals
SWOT Analysis
a planning exercise in which managers identify org. strengths (S), weaknesses (W), environmental opportunities (O) and threats (T)
Campbell Soup Example Point?
SWOT analysis to deal with issues it had
Principle Corp. Level Strategies that managers use to help a company grow, keep it on top, and stop decline:
1) Concentration on a single business
2)diversification
3) international expansion
4) vertical integration
An organization benefits from pursuising any of the strategieies only when the strategy helps:
...further increase the value of the org's goods and services for customers
diversification
expanding operations into a new business or industry and producing new goods and services
related diversification
entering a new business or industry to create a competitive advantage in one or more of an org's existing divisions or businesses
synergy
performance gains that result when individuals and departments coordinate their actions
unrelated diversification
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
portfolio strategy
apportioning financial resources among divisions to increase financial returns or spread risks among diff. businesses
global strategy
selling the same standardized product using the same basic marketing approach in each national market
multidomestic strategy
customizing products and marketing strategies to specific national conditions
Gillete example point:
pursues both global strategy and a multi-domestic strategy to gain benefits from both
vertical integration
a strategy that allows an org. to create value by producing its own inputs or distributing and selling its own outputs
Four Business Level Strategies:
low cost, differentiation, focused low cost, focused differentiation
low cost strategy
driving the org's costs down below the costs of its rivals
Differentiation strategy
distinguishing an org's products from the products of competitors in dimensions such as product design, quality, or after-sales service
focused low-cost strategy
serving only one segment of the overall market and being the lowest-cost org serving that segment
focused differentiation strategy
serving only one segment of the overall market and trying to be the most differentiated org serving that segment
Two ways depts can add value to an org's products:
1) lower the costs of creating value to attract new customers with lower prices
2) finding ways to differentiate it from other companies products