Questions and Answers
What is the purpose of the first step in the basic planning process?
To set an objective
Which aspect is NOT typically part of the basic managerial planning process?
Building corporate hierarchies
In the context of planning, what does a plan primarily indicate?
Course of action
Which term is used to describe a company's strategy to leverage strengths, weaknesses, opportunities, and threats?
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What is the essence of strategic planning for a business?
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What process defines the nature of a company's business by matching internal strengths and weaknesses with external opportunities and threats to maintain a competitive position?
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What is the primary goal of the management planning process?
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Which of the following is NOT a step in the strategic management process?
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What is a key aspect of the strategic planning process?
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What is the ultimate goal of the strategic management process?
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Study Notes
Strategic Management Process
- The first step in the basic planning process is to set an objective or a goal.
- The basic management planning process involves:
- Setting objectives
- Making forecasts
- Reviewing alternative courses of action
- Evaluating options
- Implementing the plan
Planning Definition
- A plan shows the course of action for getting from where you are to where you want to go—in other words, to the goal.
- Planning is always "goal-directed."
Strategic Planning
- Strategic planning is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage.
- Strategic planning involves asking, "Where are we now as a business and where do we want to be?"
- Managers develop specific strategies for taking a firm where it wants to be.
Management Planning Process
- The management planning process involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan.
- This process is goal-directed.
Exclusions
- Building corporate hierarchies is not part of the basic management planning process.
- Hierarchy of a corporation can hinder managerial planning as plans must meet budgetary requirements and match the long-term goals of the firm.
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