Chapter 5: Planning

Question 1

Planning

Answer 1

setting goals and deciding how to achieve them

Question 2

Plan

Answer 2

Document that outlines how goals are going to be met

Question 3

Business plan

Answer 3

Document that outlines a proposed forms goals, strategies for achieving them, and the standards for measuring success

Question 4

Business model

Answer 4

Outline of need the firm will fill, the operations of busines, it’s conpnenets and functions, as well as the expected revenues and expenses

Question 5

Strategy

Answer 5

Larry scale action plan that sets the direction for an organization

Question 6

Strategic management

Answer 6

A process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals

Question 7

3 reasons for strategic management

Answer 7

1) provide direction and momentum
2) encourage new ideas
3) develop a sustainable competitive advantage

Question 8

Mission statement

Answer 8

What’s our reason for being

Question 9

Vision statement

Answer 9

What do we want to become

Question 10

Values statement

Answer 10

What values do we want to emphasize

Question 11

Mission

Answer 11

Organizations purpose or reason for being

Question 12

Vision

Answer 12

Long term goal describing ‘what’ an organization wants to become

Question 13

Values statements

Answer 13

Expresses what the company stands for, it’s core priorities, the values it’s employees embody, and what it’s products contribute to the world

Question 14

Strategic planning

Answer 14

Done by top managers

Determines what the organizations long term goals should be for the next 1-5 years

Question 15

Tactical planning

Answer 15

Performed by middle management

Determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years

Question 16

Operational planning

Answer 16

Done my first-like management

Determining how to accomplish specific tasks with available resources within the next 1 week to 1 year

Question 17

Goal

Answer 17

Aka a objective

Specific commitment to achieve a measurable result within a stated period of time

Question 18

Long term goals

Answer 18

1-5 year span that focussed on achieving the strategies identified in a company’s strategic plan

Question 19

Short term goals

Answer 19

Tend to span 12 months and are connected to strategic goals on a hierarchy known as a means end chain

Question 20

Means end chain

Answer 20

Hierarchy of goals; in the chain of management the accomplishment of low level goals are the means leading to the accomplishments of high level goals or ends

In easy terms: shows how goals are connected across the organizations

Question 21

Operating plan

Answer 21

Typically designed for a 1 year period, this plan defines how a manager will conduct his business based on the action plan

Question 22

Action plans

Answer 22

Course of action needed to achieve a stated goal

Question 23

SMART goal

Answer 23

Specific 
Measurable 
Attainable 
Results-orientated 
Target dates

Question 24

Management by objectives

Answer 24

Four step process

Question 25

4 steps of management by objectives

Answer 25

1) managers and employees jointly set objectives for the emplyee
2) managers develop action plans
3) managers and employees periodically review the employees performance
4) the manager makes a performance appraisal and rewards the employee according to results

Question 26

Cascading goals

Answer 26

Objectives are structured in a unified hierarchy, becoming more specific at lower levels or the organization

Question 27

Planning / control cycle

Answer 27

A cycle that has two planning steps and 2 control steps

Question 28

2 planning steps

Part of planing / control cycle

Answer 28

Make the plan,

Carry out the plan

Question 29

Control steps

Part of planning / control cycle

Answer 29

Control the direction by comparing results with the plan

Control the direction by taking corrective action in two ways :
A) correction diviations in the plan being carried out
B) by improving future plans