1. Planning * coping with uncertainty by formulating future courses of action to achieved specified results. *setting goals and deciding how to achieve them
1.1. Business model outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses
1.2. Business plan a document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success.
2. Planning & Strategic Management
2.1. 1- Establish the mission & vision
2.2. 2- Assess the current reality
2.3. 3- Formulate the grand strategy & strategic tactical & operational plans.
2.4. 4- Implement the strategy
2.5. 5- Maintain strategic control
3. Three Levels of Management, Three Types of Planning
3.1. Top management : chief executive officer president , vice president, general managers, division heads.
3.1.1. strategic planning 1-5 years
3.1.1.1. Determine what the organization’s long-term goals should be for the with the resources they expect to have available
3.2. Middle management : functional managers, product- line managers,department managers.
3.2.1. Tactical planning 6-24 months
3.2.1.1. Determine what contributions their departments or similar work units can make.
3.3. First line management: unit managers , team leaders, first line supervisors.
3.3.1. Operational planning 1-52 weeks
3.3.1.1. Determine how to accomplish specific tasks with available resources
4. The Action Plan & the Operating Plan
4.1. Action plan: defines the course of action needed to achieve the stated goal
4.2. Operating plan
4.2.1. designed for a 1-year period
4.2.2. defines how you conduct your business based on the action plan
4.2.3. identifies clear targets such as revenue, cash flow, and market share
5. Standing Plans & Single-Use Plans
5.1. Standing plans
5.1.1. for activities that occur repeatedly over a period of time
5.1.1.1. *Policy outlines the general response to a designated problem or situation
5.1.1.2. *Procedure outlines the response to a particular problem or circumstances
5.1.1.3. *Rule designates specific required action
5.2. Single-use plans
5.2.1. for activities that are not likely to be repeated in the future
5.2.1.1. *Program single-use plan encompassing a range of projects or activities
5.2.1.2. *Project single-use plan of less scope and complexity than a program
6. Question?
6.1. 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.
6.1.1. A. Specific
6.1.2. B. Measurable
6.1.3. C. Attainable
6.1.4. D. Target dates
7. Question?
7.1. Apple has fired employees who have leaked news about unannounced products. Which step of the Planning/Control is this?
7.1.1. A. Make the plan
7.1.2. B. Carry out the plan
7.1.3. C. Take corrective action
7.1.4. D. Document the plan
8. Question
8.1. 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:
8.1.1. A. Strategic planning
8.1.2. B. Operational planning
8.1.3. C. Tactical planning
8.1.4. D. Controlling
9. Making Plans
9.1. Mission statement : " What is our reason for being?"
9.1.1. Mission statement expresses the purpose of the organization
9.2. Vision statement "What do we want become?"
9.2.1. Vision statement expresses what the organization should become, where it wants to go strategically
9.3. Strategic planning:"Done by top managers for the next 1-5 years >Goals>Action plans .
9.4. Tactical planning: " Done middle managers for the next 6-24 months . > Goals >Action plans
9.5. Operational planning : Done by first line managers for the next 1-52 weeks .> Goals >Action plans .
10. Strategy: a large-scale action plan that sets the direction for an organization *represents an “educated guess” about what must be done in the long term for the survival or the prosperity of the organization or its principal parts.
10.1. Strategic management: a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.
11. Why Planning & Strategic Management Are Important
11.1. 1. Provide direction and momentum 2. Encourage new ideas 3. Develop a sustainable competitive advantage.
11.1.1. Encouraging New Ideas
11.1.1.1. *Management scholar Gary Hamel says that companies such as Apple have been successful because they have been able to unleash the spirit of “strategy innovation.” *Strategy innovation the ability to reinvent the basis of competition within existing industries“bold new business models that put incumbents on the defensive.”
12. Three Types of Goals: Strategic, Tactical, & Operational : Goals specific commitment to achieve a measurable result within a stated period of time * known as an objective strategic, tactical, operational
12.1. *Strategic goals : set by and for top management and focus on objectives for the organization as a whole.
12.2. *Tactical goals: set by and for middle managers and focus on the actions needed to achieve strategic goals
12.3. *Operational goals: set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
13. SMART Goals
13.1. Specific
13.2. Measurable
13.3. Attainable
13.4. Results-oriented
13.5. Target dates
14. Management by Objectives (MBO) Four- Step Process:
14.1. (1) managers and employees jointly set objectives for the employee.
14.2. (2) managers develop action plans.
14.3. (3) managers and employees periodically review the employee’s performance.
14.4. (4) the manager makes a performance appraisal and rewards the employee according to results.
15. Three Types of Objectives Used in MBO:
15.1. Improvement Objectives
15.1.1. PURPOSE : Express performance to be accomplished in specific way for specific area .
15.2. Personal Development Objectives
15.2.1. PURPOSE: Express personal goals to be realized
15.3. Maintenance Objectives
15.3.1. PURPOSE: Express the intention to maintain performance at previously established levels.
16. Cascading Objectives: MBO from the Top Down.
16.1. 1. Top management must be committed
16.2. 2. It must be applied organization-wide
16.3. 3. Objectives must “cascade
16.3.1. MBO works by cascading objectives down through the organization
16.3.1.1. Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization
17. The Planning/Control Cycle
17.1. 1- Make the plan
17.2. 2. Carry out the plan
17.3. 3. Control the direction by comparing results with the plan
17.4. 4. Control the direction by taking corrective action in two ways
17.4.1. a) Correcting deviations
17.4.2. b) Improving future plans