test 2 review

test 2 review - MGMT 371 Chapter 7: Strategic Planning: is...

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Unformatted text preview: MGMT 371 Chapter 7: Strategic Planning: is the process of diagnosing the orgs external and internal environments, deciding on a vision and a mission, developing overall goals, creating and selecting general strategies to be pur- sued and allocating resources to achieve the orgs goals The 4 main aspects of strategic planning that managers can directly influence include: Vision and Mission, Goals, Strategies, and Resource Allocation contingency planning: preparation for unexpected, major and quick changes in the environment that will have a significant impact on the org and require immediate responses Benefits of Planning: 1. encourage all mangers at all level in org to think about the future in a systemat- ic manner; 2. helps promote delegation of authority and the development of a professional mgmt team; 3. leads to better coordination of company efforts and synergy among different depts & divisions, etc ex: of How to cut class only have people that are business majors, raise standards so quality will go up univ. wants to maximize classes to get out of debt; 4. helps to establish performance standards to measure the level of success to the targeted goals; which is fundamental to a control process; 5 require the top mgmt to tighten their focus on what they expect/want out of the company (narrower market); 6. establishes a com- mitment to the future of the company and its strategies from key managers and employees; 7. establish a basis for preparedness for sudden developments in the environment (external/internal); 8. improves com- munication among owners, managers, supervisors, and employees; 9. provides the basis for evaluation for employees and their contribution to success/failure of the company; 10. reduce/conserve mgmts time if properly designed and implemented(conservation of resources) * good planning takes about 6 months Issues to be addressed when planning: Planning is not an event it should be a process, top level has to be accomplished before you move down (hierarchal), if you higher the requirement for a class then you will lose 50% of profit for smaller class; 3 basic levels of plans: Policy Planning Level: solvent measures of the objectives of the org, some- times called the corporate charter...corporate mission statement; key to this stage is a broad overview of the goals; defined in enduring concepts; like profit, rate of growth, return on investment, the corporate tar- gets; Strategic Planning Level: takes the stated goals and evaluates specific approaches to make an op- timum choice among strategic alternatives; must establish contingency alternatives to accommodate changes in the competitive or general environment; Tactical Planning Level: what does it take to accom- plish the strategies developed for meeting the goals of the company; operating/budgeting input factors needed to successfully meet goals of the company; necessary input to implement selected strategies Vision: expresses an orgs fundamental aspirations and purpose, usually by appealing to its members...
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test 2 review - MGMT 371 Chapter 7: Strategic Planning: is...

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