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.