MGMT 320 1st EditionLecture 11Outline of Last Lecture I. Midterm 1Outline of Current Lecture I. Steps of planningCurrent LectureMGMT 320 – Planning1. Steps of Planninga. Create a mission statementi. States the organization’s purpose for existenceii. May include philosophical statements & the scope of business operationsb. Analyze the situationi. SWOT1. Strengths – internal2. Weaknesses – internal3. Opportunities – external – where the business can capitalize in the market4. Threats – external – competing firms with similar products/servicesc. Determine possible strategies/goals/plansi. Strategies: general ways to compete1. Long term, organization wide growth & stabilityThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Retrenchment: is an act of cutting down or reduction, particularly of public expenditure3. Levels of strategya. Corporatei. What business are we in?b. Businessi. How do we compete?ii. Differentiation & costc. Functionali. How to we support the business level strategies?ii. Goals: desired future state of affairs1. Characteristicsa. Specific & measurableb. Cover key result areas & support missionc. Challenging but realisticd. Defined time periode. Linked to rewards2. Goals providea. A source of motivation & commitmentb. Guides to actionc. Rationale for decisions d. Standards of performanceiii. Plans: steps to follow, resource needs1. Planning modelsa. Top downi. Overview is formulated & subsystems are loosely defined ii. Subsystems are then refined, additional subsystems are sometimes addediii. Starts with the big picture & then breaks it into smaller segmentsb. Bottom upi. Individual base elements are definedii. Base elements are linked into larger subsystems, sometimes in many levels, until top-level system is formediii. Starts with the basic then works its way up c. Participative (Participatory?)i. Involves the entire community in planning process, often considered part of community developmentii. Aims to harmonize views among participants & prevent conflictiv. Goals & Plans1. Strategic: long term & generala. Higher level managers2. Tactical: in major areas of the businessa. Mid-level managers3. Operational: specific & measurablea. Low level managersd. Evaluate goals & plansi. How does each fit with the mission? The environment? The company’s resources?e. Select goals & plansf. Monitor &
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