pg 1 Chapter 5 Planning Planning and Strategic Management Basic concepts behind planning and strategic management All steps are equal If you are successful in only 3 out of 4 factors you will fail Plans are subject to change You can t plan with certainty So why do we plan We plan to have our team deal with uncertainty We all want to be on the same page We may not know what will happen in a year but we can set goals for what we to happen in a year Planning coping with uncertainty Review the chart 1 Establish the organizations vision and mission 2 Formulate the grand strategy 3 Formulate the strategic plans then the tactical and operational plans these are tools 4 Implement the strategic plan 5 Control the strategy set up checkpoints which are control systems Treat planning as a very detailed process Don t just come up with a plan and see how it goes you have to have checkpoints pg 2 Four Basic Strategy Types Defenders some person or company who does a certain task and is happy with what they re doing They limit uncertainty by limiting their scope of opportunities They are experts at selling and producing limited specialty products Prospectors always look for new opportunities and always develop new products They might fail 8 out of 10 times but they will be very successful the other 2 times They are always trying to new things and testing new markets Analyzers watch what the prospectors do and copy their lead They fail less but aren t as successful as prospectors They re 2nd best They don t make the mistakes the prospectors make Reactors people who don t know what is going to happen to they sit and wait They only make changes when they have to Defenders prospectors and analyzers all have viable strategies Reactors have a lack of strategy QUESTION 1 Fredhandbag Photography scans it environment regularly However it does not tend to seek opportunities outside its present markets This company would most likely be a n A Reactor B Prospector C Analyzer D Defender answer at bottom of study guide Mission Vision Statements Mission broader and more detailed expresses the purpose of an organization become and specifies exactly how it will achieve the goal pg 3 Vision concise 1 sentence the vision is meant to get you fired up it s a long term goal describes exactly what an organization wants to Three Types Planning for Three Levels of Management All three levels of planning are related Strategic Planning long term 1 5 years or more Managers set strategic long term goals to achieve the vision and the mission Q Who sets these goals A Top Management chief executive officer president VP general managers and division heads Tactical Planning 6 24 months Managers set goals based on what their departments can contribute to achieve the vision and the mission Q Who sets these goals A Middle Management functional managers product line managers and department managers Operation Planning 1 52 weeks Managers set goals and plan specific actions and tasks that will help the company achieve the vision and the mission Q Who sets these goals A unit managers team leaders first line supervisors For more info view slides 16 20 in the Ch 5 powerpoint QUESTION 2 Danny is participating with other managers in a discussion about what his organization s goals should be for the next decade He is participating in A Strategic planning B Operational planning C Tactical planning D Controlling answer at bottom of study guide pg 4 Goals Smart Goals Action Plans Operating Plans Goal a k a objective specific commitment to achieve a measurable result within a stated period of time Key parts of a goal specific measurable time Strategic goals Tactical goals Operational goals strategic goals are set by top managers strategic goals are also intended for top managers strategic goals focus on the entire organization tactical goals are set my middle managers tactical goals are intended for middle managers tactical goals are tasks meant to achieve strategic goals operational goals are set by first line managers operational goals are intended for first line managers operational goals are short term tasks intended to supplement tactical goals Overview Everyone is working to achieve the same goals First line managers the lowest managers set goals to help foster what their managers need Middle managers take steps within middle management to achieve and support the same goals as their bosses top managers in upper management Top managers set goals that relate directly to the organization as a whole because they have the largest responsibility SMART Goals Specific Measurable Attainable Result oriented Target dates pg 5 QUESTION 3 Melissa wants her employee Ralph to turn in his monthly sales report by the 5th of every month This meets the requirement of SMART goals A Specific B Measurable C Attainable D Target dates answer at bottom of study guide Relationship Between Goal Difficulty and Performance see chart on slide 25 There is a relationship between goal difficulty ad performances if a goal challenges someone they will perform better A person will put in little effort to achieve a goal that is not challenging because the worker feels it s too easy and beneath him A person will put in a moderate amount of effort to achieve a goal that challenges him yet achievable The worker will rise to the occasion Accomplishing a moderately challenging goal is rewarding for the worker A person will also put in little effort for an impossibly challenging goal The worker will know the challenge is too great therefore he will quit all the steps you have to do to accomplish your goal defines the course of action Action Plan Operating Plan Standing Plan plan for situations that occur frequently Policy outlines the company s general response to a specific problem or situation ex This company does not condone cursing this policy is a broad statement pg 6 it does not get specific yet it gives the manager a general ideal about what is allowed and not allowed Procedure outlines the response a company has a to a specific problem or circumstances ex Chic Fil A specifies exactly how an employee should respond when a customer says thank you Chic Fil A employees must follow the procedure of saying My pleasure ex McDonalds specifies exactly how an employee should dress a hamburger This includes the order that the condiments should be placed on the burger pickles lettuce then ketchup a procedure is more specific than a policy Rule a plan that designates specific required
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