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Flashcards in Chapter 5: Planning Deck (29)
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1

Planning

setting goals and deciding how to achieve them

2

Plan

Document that outlines how goals are going to be met

3

Business plan

Document that outlines a proposed forms goals, strategies for achieving them, and the standards for measuring success

4

Business model

Outline of need the firm will fill, the operations of busines, it’s conpnenets and functions, as well as the expected revenues and expenses

5

Strategy

Larry scale action plan that sets the direction for an organization

6

Strategic management

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

7

3 reasons for strategic management

1) provide direction and momentum
2) encourage new ideas
3) develop a sustainable competitive advantage

8

Mission statement

What’s our reason for being

9

Vision statement

What do we want to become

10

Values statement

What values do we want to emphasize

11

Mission

Organizations purpose or reason for being

12

Vision

Long term goal describing ‘what’ an organization wants to become

13

Values statements

Expresses what the company stands for, it’s core priorities, the values it’s employees embody, and what it’s products contribute to the world

14

Strategic planning

Done by top managers

Determines what the organizations long term goals should be for the next 1-5 years

15

Tactical planning

Performed by middle management

Determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years

16

Operational planning

Done my first-like management

Determining how to accomplish specific tasks with available resources within the next 1 week to 1 year

17

Goal

Aka a objective

Specific commitment to achieve a measurable result within a stated period of time

18

Long term goals

1-5 year span that focussed on achieving the strategies identified in a company’s strategic plan

19

Short term goals

Tend to span 12 months and are connected to strategic goals on a hierarchy known as a means end chain

20

Means end chain

Hierarchy of goals; in the chain of management the accomplishment of low level goals are the means leading to the accomplishments of high level goals or ends

In easy terms: shows how goals are connected across the organizations

21

Operating plan

Typically designed for a 1 year period, this plan defines how a manager will conduct his business based on the action plan

22

Action plans

Course of action needed to achieve a stated goal

23

SMART goal

Specific
Measurable
Attainable
Results-orientated
Target dates

24

Management by objectives

Four step process

25

4 steps of management by objectives

1) managers and employees jointly set objectives for the emplyee

2) managers develop action plans

3) managers and employees periodically review the employees performance

4) the manager makes a performance appraisal and rewards the employee according to results

26

Cascading goals

Objectives are structured in a unified hierarchy, becoming more specific at lower levels or the organization

27

Planning / control cycle

A cycle that has two planning steps and 2 control steps

28

2 planning steps

(Part of planing / control cycle)

Make the plan,

Carry out the plan

29

Control steps

Part of planning / control cycle

Control the direction by comparing results with the plan

Control the direction by taking corrective action in two ways :
A) correction diviations in the plan being carried out
B) by improving future plans