Management Ch. 2 Planning

Standing plans are designed to manage repetitive situations T/F

True

The mission statement identifies the common purpose of the organization T/F

True

Another name for the classical decision making model is the rational decision making model T/F

True; Since different authors use these terms interchangeably, the student should be acquainted with both

Problem

a discrepancy between an existing state of affairs and a desired state of affairs.

unstructured problem

ambiguos, non routine, and unfamiliar, typically existing under conditions of risk or uncertainty, and call for non programmed decisions.

Goal setting

identifies objectives in specific, measurable terms with a target date for completion

planning

involves setting goals and objectives in a coordinated and hierarchical fashion across the various levels and departments in an organization in order to focus all efforts toward achievement of the organization's mission and long term goals.

three levels of strategy formulation

corporate, business and functional

Public, objective, rationally understood, documented information is

explicit knowledge

three most widely used business strategies

low cost strategy, differentiation strategy, focused strategy

stability strategy

organization wants to remain at its current size or grow only slowly

Refers to process by which new members of an organization learn the values, norms, and expected ways of working necessary to perform their jobs effectively in that organization

organizational socialization

SWOT analysis

part of strategy formulation; assessment of the organizations Strengths, Weaknesses, Opportunities and Threats present in the external environment

tacit knowledge

personal, subjective, intuitively understood, undocumented information

Which strategy goes with the essential question "what business are we in?" (a) functional strategy, (b) corporate strategy, (c) business strategy

(b) corporate strategy

Four purposes of goal setting

(1) provide guidance, direction and legitimacy for actions and behavior, (2) form the basis for effective organizational planning, (3) provide a challenge that can motivate workers to perform at their best, (4) provide a means for evaluating and controlling the performance of individuals and work units

another term for situational analysis is (a) SWOT analysis, (b) tactical planning, (c) MBO analysis, (d) operational planning

(a) SWOT analysis. SWOT analysis stands for strengths, weaknesses, opportunities and threats

Facilities managerial monitoring of the environment is a potential_________ of planning (a) benefit, (b) risk

(a) benefit

corporate strategy

sets the definition for the entire firm, defining a general action plan to achieve long range objectives. Answers the question "what business are we in?"

Which of the following is NOT one of the three steps in the creative process (a) preparation, (b) evaluation, (c) incubation, (d) documentation

(d) documentation. Documentation is not part of the basic creative process. It is however, typically necessary as part of the process of organizational innovation - where a creative idea or solution is "sold" to management and implemented as part of an organization's activities

A SWOT analysis involves an assessment of factors likely to effect the organizational performance T/F

True

Functional strategy involves all of the major functional departments within the organization T/F

True

refers to low cost, differentiation, and focused strategies

types of business strategy

Walmart uses which of the following strategies (a) focused, (b) differentiation, (c) low cost, (d) none of the above

(c) low cost

in an organization, a mission statement typically includes which of the following: (a) specification of the common purpose or over arching goal of the organization, (b) specification of the products or services produced and customers served by the organization, (c) specification of how the organization differs from its competitors, (d) all three of the above are typically included in a mission statement

(d) all three are typically included in a mission statement.

The three steps in the creative process are preparation, incubation and evaluation T/F

True

decision making refers to the process of choosing a solution to a problem or a course of action from a set of alternatives T/F

True. Contrast this with a problem. A problem is a discrepancy between an existing state of affairs and a desired state of affairs. Problem solving involves a process of identifying and resolving problems.

classical (or rational) decision making model

a prescriptive model of what managers SHOULD do to make optimizing or ideal solutions.

A process of using a series of confidential questionnaires to develop and refine a solution, typically with a group of experts is the

delphi technique

growth strategy

deployed internally or externally; Concentration strategy or concentric diversification or vertical integration

single use plan

designed to cover unique, specific circumstances that are not expected to recur such as programs and projects

low cost strategy

designed to gain advantage over competitors by being a lower cost producer of the product or service

standing plan

designed to manage repetitive situations. Policies, procedures, rules, and regulations

tactical plans

developed by middle managers for 6months-2 yrs. Focus on allocating resources to accomplish specific goals of the strategic plan. popular approach in management by objectives (MBO)

Refers to a process in which an overconfident group strives for harmony and agreement while suppressing dissent, and therefore makes less effective decisions

groupthink

growth

including expansion in terms of size, market share, or number of businesses, and including concentration, concentric diversification, conglomerate diversification, and vertical integration

retrenchment

managing decline, including liquidation and divestiture of business units

global strategy

marketing products all over the world. Globalization, multidomestic strategy, transnational strategy

procedures

more concrete than policies, laying out a series or steps to be implemented under specific circumstances. SOPs

refers to setting goals and objectives in a coordinated and hierarchical fashion across various levels of work units in an organization in order to focus all efforts toward goal achievement

planning

Planning entails both

potential benefits and potential risks to organizations.

Three steps in the creative process

preparation, incubation and evaluations.

operational plans

short term plans developed by first line managers expected to produce results in weeks or months. Ex. single use plans, standing plans and budgets

characteristics of effective goals

specific and measurable, challenging but attainable, based on concrete time-frame for completion and clearly prioritized in terms of importance

types of company plans

strategic, tactical and operational

strategic management entails two stages

strategy formulation and strategy implementation

two stages of strategic management

strategy formulation and strategy implementation

two basic types of problems

structured and unstructured

all of the following would normally be activities required of managers during the strategic implementation stage of strategic management except (a) perform a comprehensive situational analysis, (b) allocate resources and responsibilities for components of the plan, (c) draft detailed implementation plans, including goals and timetables, (d) hold individuals accountable for their assigned roles

(a) perform a comprehensive situational analysis. The situational analysis would be completed as part of the strategy formulation stage of strategic implementation

A differentiation strategy is used by (a) Walmart, (b) Coca-Cola, (c) Sears, (d) Sam's Club

(b) Coca Cola. Coca Cola follows a differentiation strategy; whereas, walmart, and Sam's club follow a low cost strategy. Sear's strategy is not clear.

the ______ is also known as the behavioral decision making model (a) classical, (b) administrative

(b) administrative

In terms of managerial effectiveness, which of the following refers to a desirable outcome or activity for managers to engage in (a) satisficing, (b) benchmarking, (c) groupthink, (d) all of the above activities will promote managerial effectiveness

(b) benchmarking. Benchmarking refers to the process of identifying outstanding practices in other organizations and adapting them to one's own company, clearly a highly desirable activity. Satisficing refers to using minimally acceptable solutions, and groupthink involves making less effective decisions, neither of which is a desirable outcome.

regarding the three levels for strategy formulation (corporate, business and functional), it should be noted that in smaller companies that operate within a single industry or with only one product, the corporate strategy is typically the same as the _________strategy. (a) functional, (b) business

(b) business. Functional strategy sets the direction for operational support of corporate and business strategies, through major functional departments such as human resources, production, marketing and finance, typically by developing departmental plans to lower costs or add value.

Pepsi Co purchased Tropicana, which produces fruit juices, a business related to Pespi Co's core beverage business. This is an example of which corporate growth strategy (a) concentration strategy, (b) concentric diversification, (c) vertical integration, (d) conglomerate diversification

(b) concentric diversification

Involves planning, analysis, and decision making that leads to the development of goals and strategic plans (a) situational analysis, (b) strategy formulation, (c) strategy implementation

(b) strategy formulation

Which of the following levels of strategy formulation answers the question, "what businesses are we in?" (a) business strategy, (b) functional strategy, (c) corporate strategy, (d) differentiation strategy

(c) corporate strategy. Business strategy essentially answers the question "how do we compete?" Corporate strategy sets the direction for the entire firm, defining a general plan to achieve long range objectives by determining the range of businesses or product lines that the organization will entail

The level of strategy that focuses primarily on operational issues related to improving competitive advantage by lowering costs to the company or increasing the value offered to the consumer is the ______ level (a) corporate, (b) business, (c) functional

(c) functional. Functional strategy ultimately translates corporate and business strategies into concrete action plans

All of the following are examples of techniques that can improve creative problem solving in a group setting except (a) brainstorming, (b) devil's advocacy, (c) groupthink, (d) nominal group technique

(c) groupthink

All of the following are among the advantages of group decision making except (a) the diverse experiences and greater pool of knowledge results in better definition of the problems and generation of a wider variety of alternatives, (b) it leads to greater acceptance and commitment to the decision, (c) it often allows groups to generate Groupthink, (d) for complex, non routine, unstructured problems, it typically leads to better decisions than individual decision making

(c) it often allows groups to generate Groupthink. Groupthink is one of the disadvantages of group decision making, where an overconfident and cohesive group inadequately evaluates and makes ineffective decisions

Within the category of standing plans, which of the following tends to be the most concrete and specific (a) policies, (b) procedures, (c) rules and regulations, (d) all three have the same level of concreteness or specificity

(c) rules and regulations. These are more concrete than both policies and procedures because they provide detailed specifics regarding exactly what actions must or must not be performed

Ford Motor Company utilizes expertise from its employees worldwide to develop multiple design platforms for vehicles which can then be tailored to meet specific regional customer preferences. This is an example of which global strategy (a) globalization, (b) multidomestic, (c) transnational

(c) transnational

Strategic plans implemented by middle managers make extensive use of management by objectives (MBO) T/F

False. Middle managers tend to be involved in tactical plans and tend to use management by objectives (MBO). Generally speaking, strategic plans are developed by top management

There are four types of grand strategies: growth, stability, retrenchment and concentric diversification T/F

False. The four types of grand strategy are growth, stability, retrenchment and global - not concentric diversification. Growth that is achieved by purchasing or creating businesses related to the core business is called concentric diversification

three steps of the creative process

preparation, incubation and evaluation

stability

emphasizing limited or no growth, but also no decline

problem solving

process of identifying and resolving problems.

corporate level strategies are often referred to as

grand strategies

strategic management

the process of formulating and implementing strategies to create competitive advantage and achieve the organization's mission and goals.

specify whether of not this statement is one of the typical purposes of goals in an organization: Goals provide the basis for writing job descriptions

not a typical purpose

two basic models of managerial decision making

classical (or rational) and administrative

structured problems

clearly defined, routine and recurring, typically existing under conditions of certainty or risk. These call for programmed decisions.

strategic plan

developed by top managers for 2-5 yr time-frame focusing on products, services, customer base, and mechanisms for maintaining a competitive advantage. Links plans to different organization units to support the business strategy and accomplish the mission.

non programmed decisions

entail a customized and often unique process developed in response to novel problems, opportunities, or threats

programmed decisions

entails a routine process following existing decision rules to apply a solution from past experience to a similar recurring problem.

Although goals and objectives are important in a planning process, they do not require measurable outcomes T/F

false. It is difficult for a goal or objective to be in place without measurable outcomes stated, and generally speaking also requires a timetable for completion

differentiation strategy

focuses on distinguishing the organization's products from those of competitors along important dimensions, such as design or quality.

rules and regulations

more concrete than procedures by providing detailed specifics regarding exactly what actions must or must not be performed.Dealing with sexual harassment or refunding customers

crisis management planning

plans that deal with potentially serious problems or disasters before they occur, and emphasize three stages of prevention, preparation and containment. (bird flu epidemic)

scenario planning

plans that deal with several potential future trends, events, or circumstances that might affect the organizations (fluctuating price of oil)

policies

provide general guidelines for making decisions or taking actions in response to a particular event or set of circumstances

explicit knowledge

public, objective, rationally understood, documented information

knowledge management

refers to the process of a formal system to enhance the creation and sharing of critical knowledge and information necessary for effective decision making

Two types of contingency plans

scenario planning and crisis management planning

organizational learning

the process in which a whole organization "learns from experience." A learning organization is constantly adapting and improving its effectiveness by institutionalizing the lessons learned by individual managers

decision making

the process of choosing a solution to a problem, or a course of action, from a set of alternatives. A decision is thus a choice made from among a set of alternatives.

benchmarking

the process of identifying outstanding practices in other organizations and adapting them to one's own company

creativity

the production of novel and useful ideas, or solutions to problems. Innovation refers to the implementation of creative ideas in organizations and begins with the individual employees.

BIC sells razor blade and ballpoint pens very inexpensively. This is an example of which business strategy (a) differentiation, (b) low cost, (c) focused

(b) low cost

six steps of classical (or rational) decision making model

(1) recognize and defin the problem, (2) generate alternative solutions, (3) evaluate the alternative solutions, (4) select the best alternatives, (5) implement the chosen alternative and (6) evaluate the results

the type of plan that always commits specific resources to a project or activity for a defined period of time is a (a) budget, (b) policy, (c) single use plan, (d) none of the above will always commit specific resources

(a) budget. A budget is a plan that commits specific resources to a project or activity for a defined period of time. Policies provide general guidelines for making decisions. Single use plans are designed to cover unique specific circumstances that are not expected to recur. They may or may not entail a commitment of resources

the following are examples of growth strategies, except (a) divestiture, (b) concentration, (c) diversification, (d) vertical integration

(a) divestiture. Divestiture is a retrenchment strategy. Examples of growth strategies include concentration, concentric or conglomerate (related or unrelated) diversification, and vertical integration

all of the following are characteristics of effective goals, except: (a) goals should be broad, general guidelines for making decisions, (b) goals should be challenging but attainable, (c) goals should include a specific time frame for completion, (d) goals should be clearly prioritized in terms of their relative importance, e) when possible, goals should be set participatively between manager and subordinate

(a) goals should be broad, general guidelines for making decisions. A policy is broad. policies and goals are two different things.

Policies, procedures and rules and regulations are all examples of (a) standing plans, (b) single use plans, (c) both A & B, (d) neither A nor B

(a) standing plans

scenario planning and crisis management planning are both best considered to be examples of (a) procedures, (b) contingency planning, (c) standing plans

(b) contingency planning. These are designed to deal with change or unexpected developments that can face organizations dealing with highly uncertain environments or long time frames for planning. They specify alternative actions to be taken if uncontrollable events occur, such as emergencies or unexpected conditions.

Growth strategy - including expansion in terms of size, market share, or numbers of businesses is typically considered a _________ strategy (a) business, (b) corporate

(b) corporate

which of the following terms are typically and appropriately used interchangeably? (a) goal setting and MBO, (b) goals and objectives, (c) goals and outcomes, (d) goal setting and planning

(b) goals and objectives. These two terms are often used interchangeably by both managers and by authors of management writings.

All of the following are examples of typical advantages of group decision making over individual decision making except: (a) better problem definition and alternative definition, (b) greater efficiency, (c) greater acceptance and commitment to implementation, (d) better quality decisions

(b) greater efficiency. A greater pool of knowledge, information, experience and perspectives are available in the group setting, resulting in better definition of the problem and generation of a wider variety of alternatives. The group decision making process takes longer, and therefore costs the organization more, potentially wasting time and money. Individual decision making is more efficient than group decision making.

A manager is facing an unstructured problem under conditions of very high uncertaintly, where there has been no precedent for handling this type of issue within the company. This would benefit most from (a) individual decision, (b) group decision

(b) group decision

management by objectives, or MBO, may be defined as (a) specific strategic planning technique focused on quantitative outcomes, (b) management processes involving participatory goal setting and revision over time as necessary, (c) management process based upon one-way, downward communication from manager to subordinate, (d) management technique designed to eliminate subjectivity from decision making

(b) management process involving participatory goal setting and revision over time as necessary

Strategic management entails two stages (a) situational analysis and functional strategy, (b) strategy formulation and implementation, (c) situational analysis and SWOT analysis, (d) strategic planning and strategic allocation

(b) strategic formulation and implementation. Strategy formulation involves strategic planning at three levels: corporate, business, and functional. It involves the allocation of resources and assignment of responsibility. A situation analysis is often the first step in strategy formulation. SWOT analysis involves an assessment of factors likely to affect the organization's performance

Executives need to determine whether to accept an unexpected takeover bid from a competitor is an example of a (a) structured problem, (b) unstructured problem

(b) unstructured

in management, uncertainty refers to the gap between what is known and what needs to be known in order to properly understand a situation and make effective managerial decisions. As it relates to planning, the concept of uncertainty relates strongly to (a) the benefits of planning, (b) the risks of planning, (c) both the benefits and risks of planning, (d) neither the benefits or the risks of planning

(c) both the benefits and the risks of planning. Uncertainty relates strongly to the benefits of planning since planning can help an organization deal more effectively with uncertainty by developing alternative action plans for use under different future circumstances. But uncertainty also relates strongly to the risks of planning, since incorrect assumptions about uncertainties in the environment can lead to flawed plans, as can environmental changes that cause plans to no longer meet environmental changes

planning involves setting goals and objectives in a coordinated fashion across the various levels and work units in an organization in order to focus all efforts toward achieving the organization's common purpose. This common purpose is typically presented in a formal written document known as (a) Overarching goal, (b) organizational objective, (c) mission statement, (d) organizational plan

(c) mission statement; This is the formal term used by organizations to refer to such a statement of the fundamental goal or purpose of the organization.

The process of formulating and implementing strategies to create competitive advantage and achieve the organization's mission is known as (a) situational analysis, (b) functional strategy, (c) strategic management, (d) strategic implementation

(c) strategic management. Strategic management involves two stages: strategy formulation and implementation

conditions of uncertainty should be associated with (a) programmed decisions, (b) both programmed and unprogrammed decisions, (c) unprogrammed decisions

(c) unprogrammed decisions

In organizations, effective planning typically involves (a) determining or revising the organization's mission and goals, (b) formulating strategy, (c) implementing strategy, (d) all of the above

(d) all of the above

which of the following techniques might be useful for enhancing either individual or group creativity? (a) brainstorming, (b) lateral thinking, (c) devil's advocacy, (d) all of the above

(d) all of the above

The decision making model that best describes the actual day to day decision making activities of real world managers is the _____ model (a) administrative, (b) behavioral, (c) bounded rationality, (d) all of the above

(d) all of the above (they are all different words for the same thing)

Which of the following might be considered an example of a single use plan (a) policies, (b) procedures, (c) rules and regulations, (d) budgets

(d) budgets. Standing plans are designed to manage repetitive situations. Examples of standing plans include policies, procedures, rules and regulations. Single use plans are designed to cover unique, specific circumstances that are not expected to recur and include programs and projects. A budget is a plan that commits specific resources to a project or activity for a defined period of time, budgeting may be considered an example of a single use plan, since it typically covers a finite period of time (i.e. a fiscal yr)

Which stage of the classical decision making model is most important to organizational learning (a) generate alternative solutions, (b) evaluate alternative solutions, (c) implement the chosen alternative, (d) evaluate the results

(d) evaluate the results. Organizational learning entails learning from the results of actions and decisions - including mistakes

Gillette has for years been identifying countries with a growing market for razor blades and forming strategic alliances with local companies to enter the market in that nation. This is an example of (a) growth strategy, (b) stability strategy, (c) retrenchment category, (d) global strategy

(d) global strategy

strategic, tactical, and operational plans all share one thing in common. That is they are: (a) all designed to be achieved within a medium term time frame, (b) all developed by middle managers, (c) all examples of standing plans, (d) interrelated by the concept of cascading objectives

(d) interrelated by the concept of cascading objectives. This means that the goals at all levels of the organization should be interrelated such that achieving specific goals at a lower level automatically and directly helps to achieve goals at a higher level

experience and decision rules are more important than intuition and judgment making in __________ decisions (a) satisficing, (b) non programmed, (c) unstructured, (d) programmed

(d) programmed

Which of the following types of plans are designed to manage repetitive situations (a) single use plans, (b) strategic plans, (c) operational plans, (d) standing plans

(d) standing plans. These are designed to manage repetitive situations. Thus, the plan can be developed once and repeatedly applied whenever the event recurs, saving managers time and effort

A manager facing an unstructured problem should solve it using a programmed decision T/F

False; An unstructured problem is one that is complex, unfamiliar, non routine, and not clearly defines, characterized by numerous ambiguities and information deficiencies. Unstructured problems call for non programmed decisions, since established routines or procedures cannot be used. A structured problem is one that is straightforward, clearly defined, familiar, and often routine and recurring. Structured problems call for programmed decisions (which are routine processes that follow existing decision rules or guidelines to apply a solution from a past experience to a similar or recurring problem)

functional strategy differs from corporate and business strategy in that it does not entail groups of popular strategic terminologies or categories that students should remember T/F

False; Corporate strategy includes various different, widely used approaches with common labels that should be understood (such as growth, stability, retrenchment, or global strategies, as well as other terms used to further refine and classify these). Similarly, business strategy includes a variety, though only three categories are presented here (these are low cost, differentiation, and focused). Functional strategy, on the other hand, sets the direction for the operational support of corporate and business stratgeies, (through major functional departments such as human resource, production, marketing, and finance), typically by developing ways to lower costs to the organization or add values to the product or service. There are not typical lists of examples of functional strategies that are frequently used by different organizations. Rather, functional strategies are tailor made to the circumstances present in individual firms.

The administrative decision making model is based on the idea that managers try to make ideal or "optimizing" decisions during their daily activities T/F

False; It is the rational model that assumes optimizing decisions. The administrative model, also known as the behavioral or bounded rationality model, assumes that satisficing occurs during typical managerial decision making activity. This means that managers select the first alternative that seems as if it will yield a minimally acceptable solution to the problem, rather than persisting to identify the ideal solution.

When the planning process integrates goal setting with the mission statement, there is no risk in the process T/F

False; Planning involves setting goals and objectives in a coordinated and hierarchical fashion across various levels and work units in an organization in order to focus all efforts toward achievement of the organization's mission and long term goals. However, there are always both benefits and risks to the process. Potential risks always include incorrect assessments or assumptions, as well as problems with implementation plans

The most difficult decision making circumstances for managers occur under conditions of risk T/F

False; Since conditions of risk imply that a manager can assign probabilities to the likelihood of specific outcomes, these would not be the most difficult circumstances. Rather, conditions of uncertainty, where very little information is available, represent the most difficult decision making circumstances for managers. Under these conditions, the manager does not know all the potential solution alternatives, and cannot assign probabilities to outcomes Here non programmed decisions must be made, typically involving creative problem solving.

Strategic plans include single use plans, standing plans, and budgets T/F

False; Strategic plans are developed by top managers with a long term time frame, focusing on products, services, customer base, and mechanisms for maintaining competitive advantage by linking the efforts of all organizational units. Operational plans are developed by first-line managers, and are designed to guide the day-to-day activities of non-managerial employees by directing their behaviors and priorities in the short term. Operational plans include single use plans, standing plans and budgets.

the four basic types of grand strategies are concentration, concentric diversification, conglomerate diversification, and vertical integration T/F

False; The four basic types of corporate and grand strategies are growth, stability, retrenchment, or global grand strategies. Concentration, concentric diversification, conglomerate diversification and vertical integration are all examples of corporate growth strategies

The three steps in the creative process are brainstorming, devil's advocacy, and synectics T/F

False; The three steps in the creative process are preparation, incubation, and evaluation. Branstorming, devil's advocacy and synectics are examples of techniques designed to promote creative problem solving, especially in groups.

One of the ways in which a learning organization may adopt to its competitive environment is through the use of benchmarking T.F

True; A learning organization is consistently changing, adapting to its environment, and improving its effectiveness by institutionalizing the lessons learned by individual managers in response to critical or challenging problems. The term benchmarking is used to refer to the process of identifying outstanding processes, practices, or standards in other organizations and adapting them to one's own company. Benchmarking is an essential practice in learning organizations

In addition to growth, stability, retrenchment and global strategies, there are other approaches to grand strategy used by large firms T/F

True; Other approaches to grand strategy also exist, such as e-commerce, or cooperative strategies such as joint ventures or strategic alliances discussed in ch. 1

Strategic management may be defined as the process of formulating and implementing strategies to create competitive advantage and achieve the organization's mission and goals T/F

True; Strategic management entails a strategy, which is a comprehensive plan for pursuing the organization's mission that guides resource allocation to facilitate achievement of the organization's long term goals. It includes two stages: strategy formulation (which involves planning, analysis and decision making that lead to the development of goals and a strategic plan) and strategy implementation (which involves the allocation of resources necessary to achieve strategic goals, and the ongoing oversight of the implementation process).

It is often appropriate to use individual rather than group decision making under conditions of certainty or minimal risk, where programmed decision making is appropriate T/F

True; when facing a structured problem under conditions of certainty or minimal risk, where programmed decision making is appropriate, use individual decision making unless there is a desire to train employees, or it is likely that they will balk at implementing the decision unless they feel that they have been involved in making it.

strategy

a comprehensive plan for pursuing the organization's mission that guides resource allocation to facilitate achievement of the organization's long-term goals

Administrative (aka behavioral or bounded rationality) decision making model

a descriptive model which describes what managers typically do when making decisions. Managers typically act with a variety of cognitive and informational limitations, such that they accept satisficing decisions (by implementing the first minimally satisfactory solution they identify)

management by objectives (MBO)

a management process in which a manager and subordinate meet periodically to participatively set goals, discuss progress towards their achievement, and revise those goals as necessary over time.

retrenchment strategy

a period of decline, by selling or shrinking business units (liquidation, divestiture)

budget

a plan that commits specific resources to a project or activity for a defined period of time. This can also be an example of a single use plan.

satisficing

a process in which managers select the first alternative that seems to be a minimally acceptable solution to the problem, rather than carefully considering and evaluating all alternatives to identify the optimal solution

focused strategy

aims at a smaller, rather than a larger market segment, typically with either a low cost or differentiated approach

SWOT

analysis which provides an assessment of the organization's current competitive position in terms of strengths, weaknesses, opportunities, and threats

four types of grand strategy

growth, stability, retrenchment and global

the four basic types of corporate grand strategies are aka corporate strategy

growth, stability, retrenchment, global

mission statement

identifies the common purpose or over arching goal of an organization, specifies its current and desired future status, and typically identifies the product or services produced and customers served in a manner designed to differentiate it from its competitors

global

includes a variety of approaches to competing worldwide, such as globalization, multi domestic, or transnational, among others

Strategy implementation

involves the allocation of resources necessary to achieve strategic goals, and the ongoing oversight of the implementation process

strategy formulation

involves the planning, analysis, and decision making that leads to the development of goals and a strategic plan.

business strategy

sets the direction for a single business unit or product line, defining a competitive approach to a specific industry or market. In smaller firms with a single product or industry, there is no difference between corporate strategy and business strategy. In larger firms, different businesses or products will often use different business strategies. Answers the question "How do we compete?"

functional strategy

sets the direction for the operational support of corporate and business strategies, through major functional departments such as human resources, production, marketing, and finance typically developing departmental plans to lower costs or add value. Answers the question "how do we support the business level competitive strategy?"

goals or objectives

specific, measurable outcomes or targets that managers and organizational units are expected to achieve within a specified period of time.

contingency plan

specifies alternative actions to be taken if uncontrollable events occur like emergencies.

strategy implementation

the allocation of resources necessary to achieve strategic goals, and the ongoing oversight of the implementation process