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Rule:A standing plan that designates specific required action.Single-use Plans: Plans developed for activities that are not likely to be repeated in the future; such planscan be either programs or projectsProgram:A single-use plan encompassing a range of projects or activities.Project:A single-use plan of less scope and complexity than a program.5.4 DefinitionsSMART Goals:A goal that is Specific, Measurable, Attainable, Results oriented, and has Target dates.Management by Objective MBO: Four-step process in which (1) managers and employees jointly set objectives for the employee(2) managers develop action plans (3) managers and employees periodically review the employee's performance(4) the manager makes a performance appraisal and rewards the employee according to results.Cascading:Objectives are structured in a unified hierarchy, becoming more specific at lower levels of theorganization5.5 DefinitionsPlanning/Control Cycle:A cycle that has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely (a) by correcting deviations in the plan being carried out, or (b) by improving future plans6.1 DefinitionsStrategic Positioning:Strategy that attempts to achieve sustainable competitive advantage by preservingwhat is distinctive about a company: Few needs, many customers.Strategic position can be derived from serving the few needs of many customers. Example: Jiffy Lube provides only lubricants, but it provides them to all kinds of people with all kinds of motor vehicles. Broad needs, few customers.A strategic position may be based on serving the broad needs of just a few customers. Example: Wealth management and investment advisory firm Bessemer Trust focuses exclusively on high–net worth clients. Broad needs, many customers.Strategy may be oriented toward serving the broad needs of many customers. Example: National movie theater operator Carmike Cinemas operates only in cities with populations of fewer than 200,000 people6.2 Definitions
5 steps to strategic-management process:1)Stablish the mission and the vision2)Assess the current reality3)Formulate the grand strategy4)Implement the strategy5)Maintain strategic controlCurrent Reality Assessment (organizational assessment):Assessment to look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission. Grand Strategy: Second step in the strategic-management process; it explains how the organization's mission is to be accomplished. Three grand strategies are growth, stability, and defensive.