Chapter 5, Planning; Principles of Management
Strategic Planning Process: which step does the below describe? establish a mission, vision, and goals
1
what step of the formal planning process does the below describe? situation analysis
1
which step of the formal decision making process does the below describe? identify and diagnose the problem
1
which step of the strategy implementation does the below describe? define strategic tasks
1
level of planning: tactical: how long is the plan
1-2 years, medium
Strategic Planning Process: which step does the below describe? analyze external opportunities and threats
2
what step of the formal planning process does the below describe? alternative goals and plans
2
which step of the formal decision making process does the below describe? generate alternative solutions
2
which step of the strategy implementation does the below describe? assess organization capabilities
2
Strategic Planning Process: which step does the below describe? analyze internal strengths and weaknesses
3
what step of the formal planning process does the below describe? goal plan and evaluation
3
which step of the formal decision making process does the below describe? evaluate alternatives
3
which step of the strategy implementation does the below describe? develop an implementation agenda
3
Strategic Planning Process: which step does the below describe? conduct a SWOT analysis and formulate strategy
4
what step of the formal planning process does the below describe? goal plan and slection
4
which step of the formal decision making process does the below describe? make the choice
4
which step of the strategy implementation does the below describe? create an implementation plan
4
Strategic Planning Process: which step does the below describe? strategy implementation
5
what step of the formal planning process does the below describe? implementation
5
which step of the formal decision making process does the below describe? implement the decision
5
Strategic Planning Process: which step does the below describe? strategic control
6
what step of the formal planning process does the below describe? monitor and control
6
which step of the formal decision making process does the below describe? evaluate the decision
6
resources financial analysis human resources assessment marketing audit operations analysis other internal resources analyses
Analyze Internal Strengths and Weaknesses, 3
which step of the below describes the formal decision making process? Is there a difference between what is actually happening and what should be happening? How can you describe the deviation, as specifically as possible? What is/are the causes of the deviation? What specific goals should be met? Which of these goals are absolutely critical to success of the decision?
Identifying and Diagnosing the Problem, 1
establishment of mission, vision, and goals analysis of internal strength and weaknesses analysis of external opportunities and threats swot analysis and strategy formulation strategy implementation strategic control
Strategic Planning Process
1) Where will we be active? 2) How will we get there? 3) How will we win the marketplace? 4) How fast will we move and in what sequences will we make changes? 5) How will we obtain financial returns?
Strategic Planning Set A Long-Term Direction
consider what a SWOT analysis might look like for Pods. What threats and opportunities in the external environment can you readily identify
The moving and storage Industry has been revolutionized over the last 10 years by Pods. The company was begun by firefighters who saw a need for temporary storage units to hold people's personal belongings after a fire damaged their home. The concept evolved to having portable containers delivered to a customer's home, where they pack it at their convenience. The container is then picked up, put into storage or moved anywhere in the country. The company has serviced over 240 million customers, facilitated 250,000 long-distance relocations, exceeded 1 million deliveries of container units and has over 140,000 containers in service. It has 132 franchise markets in the United States, Canada and Australia, along with corporate operations in larger markets.
what step of the formal planning process does the below describe? goals: -Targets or ends that manager wants to reach -Specific, measurable, attainable, relevant, time bound-smart
alternative goals and plans, step 2
what step of the formal planning process does the below describe? plans: the actions or means managers intend to use to achieve organizational goals
alternative goals and plans, step 2
what step of the formal planning process does the below describe? should stress creativity and encourages managers and employees to think broadly
alternative goals and plans, step 2
Strategic Planning Process: which step does the below describe? stakeholders
analyze external opportunities, 2
Process of accessing how well one company's basic functions and skills compare with those of another company or set of companies
benchmarking
goal of ______ is to thoroughly understand the "best practices" of other firms and to undertake actions to achieve both better performance and lower costs
benchmarking
A strategy employed for an organization that operates a single business and competes in a single industry
concentration
Strategic Planning Process: which step does the below describe? A comparison of strengths, weaknesses, opportunities, and threats that help executives formulate strategy
conduct a SWOT analysis and formulate strategy, 4
Strategic Planning Process: which step does the below describe? corporate strategy concentration vertical integration related diversification unrelated diversification
conduct a SWOT analysis and formulate strategy, 4
specifies actions when initial plans fail or events in the external environment create sudden change e.g., British petroleum's repeated attempts to stop the oil spill in the gulf of mexicio in 2010
contingency plan
Strategic Planning Process: which step does the below describe? Strategic control system: a system designed to support managers in evaluating the organization's progress regarding its strategy and, when discrepancies exist, taking corrective action
control your progress, 6
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities
corporate strategy
new, creative solutions designed specifically for the problem
custom made solutions
a strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one of more dimensions
differentiation strategy
A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits
discounting the future
Examines financial strengths and weaknesses through financial statements such as a balance sheet and an income statement and compares trends to historical and industry figures
financial analysis
1) Identify and diagnose the problem 2) Generate alternative solutions 3) Evaluate alternatives 4) Make the choice 5) Implement the decision 6) Evaluate the decision
formal decision making
A decision bias influenced by the way in which a problem or decision alternative is phrased or presented
framing effects
level of planning: operational: who develops the plan?
front line managers
which step of the below describes the formal decision making process? ready made solutions custom made solutions
generating alternative solutions, 2
what step of the formal planning process does the below describe? Managers will evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan
goal and plan evaluation, step 3
what step of the formal planning process does the below describe? Must prioritize those goals and even eliminate some of them
goal and plan evaluation, step 3
what step of the formal planning process does the below describe? managers must consider carefully the implications of alternative plans for meeting high priority goals
goal and plan evaluation, step 3
what step of the formal planning process does the below describe? Managers will select the most appropriate and feasible alternative
goal and plan selection, step 4
what step of the formal planning process does the below describe? Scenario: a narrative that describes a particular set of future conditions
goal and plan selection, step 4
what step of the formal planning process does the below describe? The evaluation process identifies and priorities and trade-offs among the goals and plans
goal and plan selection, step 4
A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges
goal displacement
• Appropriate leadership style • Constructive use of disagreement and conflict • Enhancement of creativity o Brainstorming
groups must be well led
A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus
groupthink
level of planning: operational: how detailed is it?
high
Examines strengths and weaknesses of all levels of managers and employees and focuses on key human resources activities, including recruitment, selection, placement, training, labor (union) relationships, compensation, promotion, appraisal, quality of work life, and human resources planning.
human resources assessment
People's belief that they can influences events, even when they have no control over what will happen
illusion of control
what step of the formal planning process does the below describe? Managers and employees must understand the plan, have the resources to implement it, and be motivated to do so
implementation, step 5
what step of the formal planning process does the below describe? Successful implementation requires a plan to be linked to other systems in organization particularly the budget and reward system
implementation, step 5
which step of the below describes the formal decision making process? 1) Determine how things will look when the decision is fully operational 2) Chronologically order, perhaps with a flow diagram, the steps necessary to achieve a fully operational decision 3) List the resources and activities required to implement each step 4) Estimate the time needed for each step 5) Assign responsibility for each step to specific individuals
implementing the decision, 5
Elements Included in an Environmental Analysis
industry growth and forces competitor analysis legal trends political activity social issues social interest groups labor issue marcoeconomic conditions technical factors
planning is not an ______ or ________ response to a crisis; it is a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees at all levels
informal, haphazard
level of planning: strategic: how long is the plan
long, 3-7 years
a strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product
lost cost strategy
level of planning: strategic: how detailed is it
low
which step of the below describes the formal decision making process? maximizing, satisfying, optimizing
making the choice, 4
Examines strengths and weaknesses of major marketing activities and identifies markets, key market segments, and the organization's competitive position (market share) within key markets.
marketing audit
a decision realizing the best possible outcome
maximizing
level of planning: tactical: how detailed is it?
medium
level of planning: tactical: who develops the plan?
middle managers
an organization's basic purpose and scope of operations
mission
what step of the formal planning process does the below describe? Manager's also need to develop control systems to measure that performance and allow them to take corrective action when the plans are implemented improperly or when the situation changes
monitor and control, step 6
what step of the formal planning process does the below describe? Managers must continually monitor the actual performance of their work units against the unit's goals and plans
monitor and control, step 6
The process of identifying the specific procedures and processes required at lower levels of the organization
operational planning
Examines the strengths and weaknesses of the organization's manufacturing, production, or service delivery activities.
operations analysis
achieving the best possible balance among several goals
optimizing
Examine, as appropriate, the strengths and weaknesses of other organizational activities, such as research and development (product and process), management information systems, engineering, and purchasing
other internal resource analysis
conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future
planning
ideas that have been seen or tried before
ready made solutions
A strategy used to add new business that produce related products or are involved in related market activities
related diversification
inputs to a system that can enhance performance; tangible, intangible assets
resources
Choosing an option that is acceptable, although not necessarily the best or perfect
satisfying
level of planning: operational: how long is the plan?
short, less than 1 year
focuses on achieving non-repeating goals e.g, GM's recent decision to recall 7 million vehicles to fix multiple problems
single use plan
what step of the formal planning process does the below describe? a process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration
situational analysis, step 1
groups and individuals who affect and are affected by the achievement of the organization's mission, goals, and strategies
stake holders
is designed to accomplish an enduring set of goals e.g., zappo's goal to "wow!" customers by delivering over-the-top customer service
standing plan
put the formal planning steps in order
step 1: situation analysis step 2: alternative goals and plans step 3: goal and plan evaluation step 4: goal and plan selection step 5: implementation step 6: monitor and control
Major targets or end results relating to the organization's long-term survival, value, and growth
strategic goals
A set of procedures for making decisions about the organization's long-term goals and strategies
strategic planning
Provides a perspective on where the organization is headed and what it can
strategic vision
The long-term direction and strategic intent of a company
strategic vision
a pattern of actions and resource allocations designed to achieve the organization's goals
strategy
1) Define strategic tasks 2) Assess organization capabilities 3) Develop an implementation agenda 4) Create an implementation plan
strategy implementation
A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing
tactical planning
level of planning: strategic: who develops the plan
top level managers
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities
unrelated diversification
The acquisition or development of new businesses that produce parts or components of the organization's product
vertical intergration