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60 Cards in this Set
- Front
- Back
Three Major Steps in the Planning Process
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1) determining an org.'s mission and major goals
2) chosing strategies to realize the goals 3) selecting the appropriate way of organizing resources to implement the strategy |
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Planning
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identifying and selecting appropriate goals and courses of action
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Strategy
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a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
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Planning is both a ________ and a _________ process.
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Goal-making, strategy-making
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Mission Statement
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a broad declaration of an org's purpose that identifies the org's products and customers and distinguishes the org from it's competitors.
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Where planning takes place in management:
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Corporate, business/division, departmental/functional
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Division
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a business unit that has its own set of managers and functions or depts and competes in a distinct industry. (GE Aircraft, GE Motors)
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Divisional Manager
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managers who control the various divisions of an organization
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Corporate-level plan
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top mgmt's decisions pertaining to the org's mission, overall strategy, and structure
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Corporate-level strategy
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a plan that indicates in which industries and national markets an organization intends to compete
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Business level plan
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divisional managers decisions pertaining to divisions long-term goals, overall strategy, and structure
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Business-level strategy
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a plan that indicates how a division intends to compete against its rivals in an industry
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Function
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a unit or department in which people have the same skills or use the same resources to perform their job
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Functional Managers
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managers who supervise the various functions, such as manufacturing, accounting, and sales within a division
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Functional-level plans
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functional manager's decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals
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Functional-level strategy
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a plan that indicates how a function intends to achieve its goals
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Who plans?
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Top managers
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Time Horizon
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the intended duration of a plan
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Long term plan length
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5 years or more
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Intermediate plan length
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1-5 years
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Short term plan length
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One year or less
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Corporate and business goal length?
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long and intermediate
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Functional goals length?
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intermediate and short term
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rolling plan
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a plan that is updated and amended every year to take account of changing conditions in the external env.
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UPS/Fed Ex example Point?
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developing an IT system that constantly improve efficiency and customer service
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Standing plans
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used in situations in which programmed decision making is appropriate
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Policy
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general guide to action
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Rule
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formal, written guide to action
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Standing Operation Procedure
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written instruction describing the exact series of actions that should be followed in a specific situation
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Single Use plans
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developed to handle nonprogrammable decision making in unusual or one of a kind situations
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Programs
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integrated sets of plans for achieving certain goals
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Projects
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specific action plans created to complete various aspects of a program
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Why Planning is Important:
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1) get managers to participate in decision making
2) Gives direction & purpose 3) helps coordinate diff. functions and divisions to go in same direction 4) device for manager control |
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Effective plans should have 4 qualities:
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unity
continuity accuracy flexibility |
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Unity
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at any one time, only one central, guiding plan is put into operation to achieve a goal
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Continuity
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planning is ongoing process in which managers continually modify plans at all levels so they fit together
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Accuracy
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managers need to make every attempt to collect and utilize all info at their disposal in planning
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Flexibility
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needed so that plans can be altered and changed if situation changes
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Defining a business questions:
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1) Who are the customers?
2) What needs are being satisfied? 3) How are we satisfying the needs? |
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Mattel example point?
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Companies need to listen closely to their customers and decide how best to meet their changing needs and preferences
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Strategy Formulation
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analysis of an org's current situation followed by the development of strategies to accomplish its mission and achieve its goals
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SWOT Analysis
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a planning exercise in which managers identify org. strengths (S), weaknesses (W), environmental opportunities (O) and threats (T)
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Campbell Soup Example Point?
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SWOT analysis to deal with issues it had
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Principle Corp. Level Strategies that managers use to help a company grow, keep it on top, and stop decline:
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1) Concentration on a single business
2)diversification 3) international expansion 4) vertical integration |
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An organization benefits from pursuising any of the strategieies only when the strategy helps:
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...further increase the value of the org's goods and services for customers
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diversification
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expanding operations into a new business or industry and producing new goods and services
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related diversification
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entering a new business or industry to create a competitive advantage in one or more of an org's existing divisions or businesses
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synergy
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performance gains that result when individuals and departments coordinate their actions
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unrelated diversification
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entering a new industry or buying a company in a new industry that is not related in anyway to an org's current business or industry
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portfolio strategy
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apportioning financial resources among divisions to increase financial returns or spread risks among diff. businesses
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global strategy
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selling the same standardized product using the same basic marketing approach in each national market
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multidomestic strategy
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customizing products and marketing strategies to specific national conditions
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Gillete example point:
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pursues both global strategy and a multi-domestic strategy to gain benefits from both
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vertical integration
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a strategy that allows an org. to create value by producing its own inputs or distributing and selling its own outputs
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Four Business Level Strategies:
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low cost, differentiation, focused low cost, focused differentiation
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low cost strategy
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driving the org's costs down below the costs of its rivals
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Differentiation strategy
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distinguishing an org's products from the products of competitors in dimensions such as product design, quality, or after-sales service
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focused low-cost strategy
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serving only one segment of the overall market and being the lowest-cost org serving that segment
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focused differentiation strategy
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serving only one segment of the overall market and trying to be the most differentiated org serving that segment
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Two ways depts can add value to an org's products:
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1) lower the costs of creating value to attract new customers with lower prices
2) finding ways to differentiate it from other companies products |