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Flashcards in Business Planning Deck (11)
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1
Q

Planning

A

Design of a desirable future and effective ways of bringing it about

2
Q

Planning process

A
  • awareness about opportunities and risks
  • set objectives
  • formulate plan
  • develop budget
3
Q

Types of objectives

A
  1. GENERAL(common to all firms)
    - survival related
    - control related
    - efficiency related
  2. SPECIFIC(not common to all firms)
    - help ensure general objectives
4
Q

Mission Vision Values

A

Mission: statement of purpose

Vision: desired future situation

Values: firms I think

5
Q

Programming tasks

A
  1. Break activities into stages
  2. Break stages into activities
  3. Stablish a hierarchy
6
Q

Kinds of activities

A
  1. Continuos:
    - routine
    - frequent
    - normal functioning of the organization
  2. Special:
    - sporadic
    - non frequent
    - important for management
7
Q

Advantages and Disadvantages for programming tasks

A

ADVANTAGES:

  • specific
  • cost already stablished
  • hierarchy
  • avoids concerns
  • increases effectiveness
  • facilitated coordination, control…

DISADVANTAGES:

  • time consuming
  • risks limit innovation
  • rigidity to execute plans
8
Q

Peter druker: 8 key areas to set objectives

A
  1. Market stability
  2. Probability
  3. Profitability
  4. Physical and financial resources
  5. Managerials performance and development
  6. Workers performance and attitude
  7. Public responsability
  8. Innovation
9
Q

Mcgregors X and Y theories

A
THEORY X (pessimistic)
Workers:
Not motivated
Avoid responsibility 
Dislike their work

Reward/punish system
No delegation
Authoritarian approach

THEORY Y (optimistic)
Workers:
Have initiative 
Like their work
Self motivated
Involved in decision making
10
Q

Advantages and Disadvantages of MBO

A

ADVANTAGES:

  • stronger motivation
  • clear and specific objectives
  • clear organization
  • better control

DISADVANTAGES:

  • applying MBO
  • management must be implied
  • top down system
  • time consuming
  • management focused on quantitative objectives
11
Q

Developing budgets

A
All elements in a monetary form
Easy to control
Easy to measure
Objectives and programmes converted into economic values
Shows feasibility