Ch 5 (quiz) Flashcards
(30 cards)
Nature of Planning
- complex, cognitive process
- implementation issues and multiplicity
- environmental uncertainty
Complex, Cognitive Process
- -goal oriented ex. increase market share 20%
- -action oriented ex. expand market
- -value oriented ex. innovation
Implementation issues and multiplicity
implementation takes time
Environmental Uncertainty
new technology–Nokia plan failed
80/20 rule
Pareto’s rule
Japanese use 80% planning 20% implementation
employees agree first
People resistant–if bad planning
Types of Plan
based on level: strategic, operational, and functional
based on time-frame: Long or short term
based on use: single-use and standard
based on specificity: directional and specific
based on adaptability: rolling and fixed
Strategic Plans
top; long single use, directional rolling
–identifies long-term directions for the organization
Operational Plans
Middle; or tactical plan–sets out ways to implement a strategic plan
Functional Plans
short; standard, specific, fixed
–identifies ho different parts of an enterprise will contribute to accomplishing strategic plans
Long-term Plans
Japan 20-100 yrs and US 5 years
– usually cover 3 years or more
Short-term plans
usually cover a year or less
Single-use Plans
particular situation; Nonprogrammed
Standard
make 1 plan and can use it again; Programmed ex. Apple Phone
Directional
Target find a way ex. A; B
Specific
specify details
ex. left, right
Rolling Plans
systematic type of planning where a plan which has been carried out is substantiated, updated and edited after a specific time interval.
Fixed Plans
Plans made in advance?
Back Up Plan
contingency planning: identifies alternative courses of action to take when things go wrong
Planning for high uncertainty and risk
- benchmarking
- forecasting
- contingency planning
- scenario planning
Benchmarking
use of external comparisons ex. best standards in the industry, in the planning process. Usually applied in the goal setting stage
ex. CAT–lowest employee turnover rate
John Deere sets 2% turnover rate
Forecasting
-use of qualitative (ideas subjective; expert opinion) or quantitative methods to predict the future. Usually applied in the assessment stage of the planning process
–ex Zara–operations research fabric of next season (qualitative)
some #’s past and current sales (quantitative)
Contingency Planning
a plan to deal with crisis, disaster or some specific negative events that may happen in the future
ex. BP–oil spill, coal mining
Business Continuity Planning (BCP)
- respond
- recover
- resume
HAZMAT operations
contingency planning are industrial regulatory requirements for them
