2300 book notes

Each division has its own division managers who are

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Unformatted text preview: Effective plan should have 4 qualities o unity - one central plan to achieve goals o continuity - planning is an ongoing process by building/refining plans o accuracy - collect and use all information available o flexible - plans can be altered if situation changes Levels of Planning o corporate level - CEOs - strategy and planning for the whole organization o business level - different divisions or business units ! each division has its own division managers who are responsible for strategy and planning of their own divisions respectively o functional - each division has its own functions or departments ! manufacturing, marketing, etc ! functional managers within each department are responsible for their own functions within each division Levels and Types of Planning o corporate-level plan: top management's decisions pertaining to the organization's mission, overall strategy, and structure o corporate-level strategy: which industries and national markets an organization intends to compete o business-level plan: divisional managers' decisions pertaining to divisions' longer term goals, overall strategy and structure o business-level strategy: plan that indicates how a division intends to compete against its rivals in an industry o functional level plan: functional managers' decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals • • o functional level strategy: a plan of action to improve the ability of each of an organization's functions to perform its task-specific activities in ways that add value to an organization's goods and services o planning and strategy across all levels should be CONSISTENT Time Horizons of Plans o long-term: usually 5 or more years o intermediate: 1-5 years o short term: 1 year o rolling plan - a plan that is updated and amended every year to take account of changing conditions in the external environment Standing Plans and Single-Use Plans o standing plans - programmed decision making is appropriate ! when situations occur repeatedly ! managers often develop SOPs to control the way employees perform their tasks o single-use plans - nonprogrammed decisions ! unusual or one-of-a-kind decision situations STEP ONE - Determining the Organization's Mission and Goals • Defining the Business o who are the customers o what customers needs are being satisfied o how are we satisfying customer needs o helps a firm identify needs they are satisfying right now, needs they could be satisfying, and its true competitors • Establishing Major Goals o establish a set of primary goals to which a company is committed o best set of organizational goals are ambitious - they stretch the organization and require that each of its members work to improve company performance o strategic leadership - CEO and top managers can communicate a compelling vision of what they want the organization to achieve to their subordinates o goals should also be realistic o time-period where goals are to be achieved should be stated STEP TWO - FORMULATING A STRATEGY • Strategy formulation - development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve...
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This document was uploaded on 02/18/2014 for the course BCOR 2300 at Colorado.

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