MGMT 339 Ch. B4

  1. What are the basic steps in any planning Process?
    • Situational Analysis
    • Alternative Goals and Plans
    • Goal and Plan Evaluation
    • Goal and Plan Selection
    • Implementation
    • Monitor and Control
  2. f.
    Benefits of Goals and Plans (Study Guide)
    ask Choi!!!!!!!!!
  3. Define planning
    • Plans are the actions or means managers intend to use to
    • achieve organizational goals
  4. Define Goals
    they are the targets or ends the manager wants to reach.
  5. Levels of Goals/Plans and their importance
    • Mission Statement - External
    • Strategic - Senior Management. Organization as a whole
    • Tactical - Middle Management. Major divisions, functions
    • Operational - Lower Management. Departments, individuals

    Slide 5
  6. Step 2: Alternative Goals and Plans

    For goals to be effective they should have certain qualities, what are they?
    • SMART
    • Specific - Employees can determine if they are working towards those goals
    • Measurable - Goal should quantify the desired results
    • Attainable (but challenging) - Employees need to recognize that they can attain the goals they are responsible for
    • Relevant - Each goal should contribute to the organization's overall mission.
    • Time-bound - Target date for completion
  7. There are 3 types of Plans, what are they?
    • Single-use...not likely repeated in future
    • Standing...ongoing
    • Contingency...Plan B
  8. What is Strategic Planning and which management level does this involve?
    • A set of procedures for making decisions about the organization's long-term goals and strategies
    • Top-Level
  9. What is Tactical Planning and which management level does this involve?
    • A set of procedures for translating broad strategic goals and plans into specific actions to be taken within parts of the organization. such as a functional area like marketing.
    • Middle-Level
  10. What is Operational Planning and which management level does this involve?
    • The process of identifying the specific short-term procedures and processes required at lower levels of the organization.
    • Frontline
  11. What are the 6 major components of Strategic management process?
    • Establishment of mission, vision, and goals
    • Analysis of external opportunities and threats
    • Analysis of internal strengths and weaknesses (resources & Core Competencies)
    • SWOT (Strengths, weaknesses, opportunities, and threats) analysis and strategy formulation.
    • Strategy implementation
    • Strategic control
  12. Define Core Competencies
    It is something a company does especially well relative to its competitors.
  13. Resources can be a source of competitive advantage if it is....
    • Valuable
    • Rare
    • Difficult to imitate
    • Well Organized
  14. Define SWOT analysis
    A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy.
  15. How does SWOT analysis help managers?
    • It summarizes the relevant and important facts from their external and internal analyses
    • Identify primary and secondary strategic issues of organization
    • They can formulate a strategy on SWOT. take advantage of opp., capitalize on strengths, neutralize weakness and countering threats.
  16. Define Corporate strategy.
    identifies a set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities
  17. What are the types of Corporate Strategies?
    • Concentration
    • Vertical integration
    • Concentric diversification
    • Conglomerate diversification
  18. Corporate Strategy

    Define Concentration
    single business competes in single industry. ex: food-retailing Kroger.
  19. Corporate Strategy

    Define Vertical Integration
    The acquisition or development of new businesses that produce parts or components of the organization's product.

    • Ex: Tire company buys out another company to produce its tires.
    • Ex: Coca cola company has bottles made from an outside company
  20. Corporate Strategy

    Define Concentric Diversification
    A strategy used to add new businesses that produce related products or are involved in related markets and activities.

    Ex: Restaurant bus. moves outside of state into airline catering, hotels, and fast food.

    *businesses are related, the products, markets, technologies, or capabilities used in one business can be transferred to another.*
  21. Corporate Strategy

    Define Conglomerate Diversification and explain why companies would pursue a conglomerate diversification strategy.
    A strategy used to add new businesses that produce unrelated products or are involved in UNRELATED markets and activities.

    Ex: GE electric diversified to industries as health, finance, insurance, truck and air transportation and media.

    Pursue - to minimize risks due to market fluctuations in one industry
  22. How can companies achieve competitive advantage through business strategy?
    • 3 ways
    • 1. Differentiation Strategy- Be unique in the industry/market that customers value
    • 2. Low-Cost Strategy- focus on efficiency and price
    • 3. Functional Strategy - Organizational
    • slide 42
  23. Strategic Management Process
    Step 5: Strategy Implementation
    this involves 4 steps, what are they?
    • 1. Define strategic tasks
    • 2. Assess organization capabilities
    • 3. Develop an implementation agenda
    • 4. Create an implementation plan
Card Set
MGMT 339 Ch. B4
Summary of Ch. B4