UNA MBA 600_ Chapter 5: Managerial Planning and Goal Setting Key Terms
Top Managers
are typically responsible for establishing strategic goals and plans
Planning
the act of determining goals and defining the means of achieving them.
Crisis preparation,three steps in the preparation stage are
(1) designating a crisis management team and spokesperson, (2)creating a detailed crisis management plan, and (3)setting up an effective communications system.
Strategic Goals
Broad statements of where the organization wants to be in the future and pertain to the organization as a whole
Benefits of planning and goal setting
Serving as a source of motivation, determining resource allocation, providing a guide to action, and setting a standard for performance measurement.
The order of goals are
1. Broad strategic goals 2. Specific tactical goals 3. Operational goals
Four elements of competitive advantage
1. Target customer 2. Core competencies 3. Synergy 4. Value
Overall Planning Process
1.Develop the overall plan 2. Translate the plan into action 3. Operational factors needed to achieve goals 4. Executing the plan 5. periodically review plans to learn from results and shift plans as needed
Goal
A _____is a desired future circumstance or condition that the organization wants to realize.
Strategic Plans
Action steps by which an organization intends to attain strategic goals
Operational Plans
Action steps toward achieving operational goals and support tactical activities.
SWOT analysis
An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance.
Management By Means (MBM).
Focuses people on the methods and processes used to attain results, rather than on the results themselves, is called
Tactical plans
Help execute major strategic plans and accomplish a specific part of the company's strategy.
Scenario building,
ID trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.
Contingency planning
Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.
Focus Strategy
Managers use either a differentiation or a cost leadership approach, but they concentrate on a specific regional market or buyer group.
Strategic thinking
Means to take the long-term view and to see the big picture, including the organization and the competitive environment, and consider how they fit together
Key performance indicators (KPIs)
Measures that reflect how well lower-level goals are helping the organization progress toward attaining its strategic goal.
Tactical Goals
Outcomes that major divisions and departments must achieve for the organization to reach its overall goals are called
Stretch goals
Reasonable yet highly ambitious and compelling goals that energize people and inspire excellence.
Core competence is
Something that the organization does particularly well in comparison to others.
Strategy formulation
Strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan.
Strategy execution
Strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes.
Cost Leadership Strategy is
Strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.
Differentiation strategy is
Strategy with which managers seek to distinguish the organization's products and services from those of others in the industry.
Middle Managers
Tactical goals and plans are the responsibility of
Value
The combination of benefits received and costs paid
Mission Statement
The organization's basic business scope and operations that distinguishes it from similar types of organizations.
Synergy exists when
The organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone.
Mission
The organization's purpose or reason for existence, which is called its
Limitations of planning and goal setting include
The potential to create a false sense of certainty, create rigidity that hinders response to a turbulent environment, and get in the way of creativity and intuition.
Strategic management
The set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals.
Decentralized planning
Top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans
Competitive advantage
What sets the organization apart from others and provides it with a distinctive edge in the marketplace.
Strategy
______ plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals.
Managers
______formulate goals that are specific and measurable, cover key result areas, are challenging but realistic, have a defined time period, and are linked to rewards.
Plan
a blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.
Porter's Competitive Strategies includes
differentiation, cost leadership, and focus
Crisis planning
involves the two major stages of prevention and preparation
Management-by-objectives (MBO)
is a method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. MBO includes the steps of setting goals, developing action plans, reviewing progress, and appraising performance.