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Chapter Summary - Chapter Summary(See related pages 5.1...

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Chapter Summary (See related pages) 5.1 Planning & Uncertainty Planning is defined as setting goals and deciding how to achieve them. It is also defined as coping with uncertainty by formulating future courses of action to achieve specified results. Planning has four benefits. (1) It helps you check your progress. (2) It helps you coordinate activities. (3) It helps you think ahead. (4) Above all, it helps you cope with uncertainty. Uncertainty is of three types. (1) State uncertainty is when the environment is considered unpredictable. (2) Effect uncertainty is when the effects of environmental changes are unpredictable. (3) Response uncertainty is when the consequences of a decision are uncertain. Organizations respond to uncertainty in one of four ways. (1) Defenders are expert at producing and selling narrowly defined products or services. (2) Prospectors focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen. (3) Analyzers let other organizations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best. (4) Reactors make adjustments only when finally forced to by environmental pressures. 5.2 Fundamentals of Planning An organization's reason for being is expressed in a mission statement. What the organization wishes to become and where it wants to go strategically—that is, its clear sense of the future and the actions needed to get there—are expressed in a vision statement.
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