Chapter 5
Management by means
putting more emphasis on the processes used to make sales than on the sales goals themselves
Formulator
Huifen tends to skip from one idea to the next when she is thinking about strategy.
Middle managers
Tactical goals and plans are the responsibility of middle managers, such as the heads of major divisions or functional units
Plan
a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions, specify today's means
Tactical Goals/Plans
a broad higher-level mission, the desired future outcomes of the major subunits of the organization
Goal
a desired future circumstance or condition that the organization attempts to realize, specify future ends
Planning process starts with
a formal mission
Operational goals
are the precise, measurable outcomes expected from departments, work groups, and individuals
Planning
determining the organization's goals and defining the means for achieving them.
Frontline managers and supervisors
develop operational goals that focus on specific tasks and processes and that help meet tactical and strategic goals
Top managers
typically responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness
competitive advantage
what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace
Division manager
will formulate operational goals
implementor
Grace is highly committed to carrying out strategies so that goals are met.
Business-level strategy
Managers who are analyzing how best to compete within a given industry are concerned with
Operational plans
identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees
Formal mission
is the basis for the strategic level of goals and plans, which in turn shapes the tactical (divisional) level and the operational (departmental) level.
corporate level strategy
managers consider what proportion of the firm's portfolio of businesses should be in different industries.
management by objectives
set goals, developed action plans, reviewed progress and took corrective action as needed, and appraised performance
strategy
the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals