Podcast
Questions and Answers
What is the primary aim of planning in an organization?
What is the primary aim of planning in an organization?
- To generate new business opportunities
- To ensure employee satisfaction
- To increase market competition
- To reduce the risk and uncertainty faced by the organization (correct)
Which type of planning occurs at the top management level and usually has a duration of over five years?
Which type of planning occurs at the top management level and usually has a duration of over five years?
- Strategic planning (correct)
- Tactical planning
- Contingency planning
- Operational planning
Which step is NOT part of the planning process?
Which step is NOT part of the planning process?
- Define corporate objectives
- Develop tactical plan
- Conduct marketing research (correct)
- Develop operational plans
In the management by objectives process, what does the subordinate do after the manager sets the standards?
In the management by objectives process, what does the subordinate do after the manager sets the standards?
Which dimension of plans refers to how many times a plan is repeated and used?
Which dimension of plans refers to how many times a plan is repeated and used?
Flashcards
Strategic Planning
Strategic Planning
Long-term planning (5+ years) done by top-level management to achieve business objectives. Focuses on overall goals.
Tactical Planning
Tactical Planning
Medium-term planning for ongoing operations, implementing strategic plans.
Operational Planning
Operational Planning
Short-term planning for day-to-day operations and immediate action.
Planning Process (steps)
Planning Process (steps)
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Management by Objectives (MBO)
Management by Objectives (MBO)
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Study Notes
Chapter Four: Planning
- Planning is the systematic development of action plans by analyzing, evaluating, and selecting different opportunities to achieve business goals. Its purpose is to reduce uncertainty.
Types of Planning
- Strategic Planning: Top-level, long-term (5+ years), includes mission, objectives, and strategic business plans.
- Tactical Planning: Ongoing operations, medium-term, interpreting strategic plans.
- Operational Planning: Short-term, daily operations, immediate action.
Dimensions of Plans
- Repetitiveness: How often the plan is used.
- Time: Length of time the plan covers.
- Scope: How far-reaching the plan is.
The Planning Process (6 Steps)
- Define Corporate Objectives: Establish clear goals.
- Conduct External & Internal Analysis: Evaluate the environment and company strengths/weaknesses.
- Revise Objectives (if needed): Adjust goals based on the analysis.
- Develop Strategic Plan: Broad plan for long-term goals.
- Develop Tactical Plan: Mid-term plan to support the strategic plan.
- Develop Operational Plans: Short-term plans to implement tactical plans.
- Feedback: Continuous evaluation and adjustment.
Management by Objectives (MBO)
- Process: Manager sets standards; subordinates establish goals exceeding these standards; goals are quantified with timeframes; performance is reviewed and feedback is provided.
Advantages of MBO
- Clear goal understanding.
- Commitment to goals.
- Enhanced control.
- Increased motivation.
- Simpler employee appraisal.
Disadvantages of MBO
- Potential goal conflicts.
- Requires skilled managers.
- Potential employee coercion.
SWOT Framework
- Strengths: Internal positive aspects of a company.
- Weaknesses: Internal negative aspects of a company.
- Opportunities: External positive aspects that can be leveraged.
- Threats: External negative factors impacting the company
Miles and Snow Typology
- Prospector: Growth-oriented, innovative company.
- Defender: Focus on stability and existing markets.
- Analyser: Combines features of defenders and prospectors.
- Reactor: Responsive to external events without a definite approach.
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Description
Explore the intricacies of planning in business with this quiz on Chapter Four. Learn about different types of planning, dimensions of plans, and the essential steps in the planning process. This quiz will test your understanding of how systematic planning can reduce uncertainties in achieving business goals.
