309 Exam 2 Concepts & Definitions

Short-range plan

1 year or less; action plan operates any other plan; reaction plan reacts to unforeseen events

Intermediate plan

1-5 years; for middle managers and central focus of planning activities

Planning Process Summary

We're laying out goals, and we're formulating plans to achieve those goals/Orgs move on forward at a steady pace when created a good planning process such as Quicken Loans

Crisis management

the set of procedures the organization uses in the event of a disaster or other unexpected calamity

Executive committee

top management provide input to the CEO and review strategic plans; includes task forces that concentrate on specific project or issues

Organizational Goals (4)

1. Provide guidance and direction for people in org (GM goal communicates the firm's commitment to sustainability) 2. Goal-setting practices strongly affect other aspects of planning (Disney has large library content, release dates are important for timing) 3. Goals serve as motivation for employees of the org (Natuzzi offers rewards to employees to motivate early finishing furniture) 4. Goals provide effective mechanism for evaluation and control (Disney+ reassessed their goal of 60m to 60-80m subscribers)

Developing tactical plans

1. must address tactical goals derived from strategic goals 2. must specify resources and time frames 3. requires the use of HR

Understanding the Environment

1st step in planning/ "GM and Tesla developed goals in response to the growing awareness of the need for sustainable business practices"

Long-rang plan

5+ years; complexity of the environment makes long-range planning difficult 3

Mission Statement

A key in management role; Means a foundational thing that allows everyone in the org know where we're headed

Strategic Goals

Bonfire example (get a group of people per opposing people aka tactical level)

Planning Process

Can be thought of as a generic activity; every company engages in planning but each plans differently. "Professor worked in uni whose mission is that they aspired to be amongst the best business schools"

Planning task force

Includes line managers and members of planning staff; represents each major unit within the company

Time frame of goals

Long-term (strategic) Intermediate-term (tactical) Short-term (operational)

Optimizing

Managers balance and reconcile conflicts when goals conflict

Manager's Checklist

Managers need to know that decision making and planning are critical parts of their job/Making effective decisions and plans increase chances for success

Planning

Occurs within the environmental context. Focused on where we're taking the organization long term/Each goal has a specific time frame. "By 2030, GM will produce 50% of its materials to be sustainable"

Mission

Outlines the orgs purpose, premises, values and direction

Planning staff

Takes a broad view and crosses departments

Planning Process

Takes place within an environmental context; managers develop a complete understanding of this context to determine the orgs mission which leads to developing strategic, tactical, and operational goals and plans

Decision Making

The cornerstone of planning; is the catalyst that drives the planning process. Underlies every aspect of setting goals and formulating plans

Tactical plan

a plan aimed at achieving tactical goals, developed to implement specific parts of a strategic plan

Board of directors

establishes missions and strategy

Operational plan

focuses on carrying out tactical plans to achieve operational goals

Strategic plan

general plan outlining decision of resource allocation, priorities, and actions steps necessary for completion of strategic goals

Areas of goals

operations, marketing, finance, quality control, productivity, HR

Tactical plan

plan aimed at achieving tactical goals; developed to implement parts of a strategic plan

Chief executive officer

president or chair of the board; single most important person in the planning process

Line management

provide valuable inside information and execute the plans developed by top management

Operational goal

set by and for low-level managers for short-term goals. Ex. Increase profitability in certain stores over 5 years

Tactical goal

set by and for middle managers to support the broad issues in the strategic goal. Ex. Store managers work on tactical goals to achieve strategic goals

Strategic Goal

set by and for top management for broad general issues. Ex. Increase profitability by 20% over 5 years

Contingency planning

the determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate