Chapter 3

Question 1

Strategic planning

Answer 1

1st Level

A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth.

Long Term plan in relation with the organisations resources and capabilities

Question 2

SBU

Answer 2

Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors.

Question 3

Functional planning

Answer 3

2nd Level

A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan.

Short term detailed plan that helps the long term strategic plan

Question 4

Operational planning

Answer 4

3rd Level

A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plans.

Developing day to day plans

Question 5

Strategic planning steps

Answer 5

Step 1: Define the Mission
Step 2: Evaluate the Internal and External Environment
Step 3: Set Organizational or SBU Objectives
Step 4: Establish the Business Portfolio
Step 5: Develop Growth Strategies