BA 110 Fundamentals of Management and Marketing PDF

COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP PROGRAMS MODULE 2 BA 110 – FUNDAMENTALS IN MANAGEMENT AND MARKETING MODULE 2: PLANNING AND DECISION-MAKING Topic Ove...

COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP PROGRAMS MODULE 2 BA 110 – FUNDAMENTALS IN MANAGEMENT AND MARKETING MODULE 2: PLANNING AND DECISION-MAKING Topic Overview This module focuses on the crucial role of planning in management and the decision-making process. Students will learn the importance of planning for achieving organizational goals, understand different types of plans (strategic, tactical, and operational), and explore various decision-making processes and tools. Through case studies and group work, students will apply these concepts in real-world business scenarios. Learning Outcomes By the end of this module, students should be able to: Understand the significance of planning in achieving organizational goals. Differentiate between strategic, tactical, and operational plans. Apply decision-making tools and techniques in business scenarios. Subtopics and Lesson Discussion 2.1 Importance of Planning in Management A. Definition of Planning Planning is the process of setting objectives and determining a course of action for achieving those objectives. It involves selecting goals, establishing strategies, and developing plans to integrate and coordinate activities. B. Significance of Planning 1. Provides Direction: Planning sets a roadmap for achieving organizational goals. It helps managers and employees understand the direction in which the organization is heading and how their roles align with overall objectives. 2. Reduces Uncertainty: Through planning, organizations can anticipate future conditions and prepare for potential changes. This reduces uncertainty and minimizes risks. 3. Facilitates Decision-Making: Planning provides a framework for making informed decisions. It offers criteria and alternatives that can be evaluated against organizational objectives. 4. Enhances Resource Utilization: Effective planning ensures that resources (time, money, personnel) are allocated efficiently to achieve goals without unnecessary waste. 5. Sets Standards for Control: Planning establishes performance standards. Managers can compare actual performance against these standards to take corrective action when necessary. 2024-2025 Module for TM2 (Tour and Travel Management) | College of Commerce | University of San Agustin, Iloilo City, 5000, Philippines Page 1 of 5  COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP C. Example Case: Consider a company launching a new product. Through proper planning, the company can outline its goals (e.g., market share, revenue targets), develop strategies (e.g., marketing, pricing), and allocate resources (e.g., budget, personnel) to achieve these goals. This approach minimizes uncertainties and helps ensure a successful product launch. 2.2 Types of Plans: Strategic, Tactical, Operational A. Strategic Plans 1. Definition: Long-term plans that define the overall direction and objectives of the organization. They typically span several years and are developed by top management. 2. Characteristics: o Broad in scope and affect the entire organization. o Focus on the organization’s mission, vision, and long-term goals. o Examples: Entering a new market, mergers and acquisitions, launching a new product line. 3. Example: A technology company decides to expand its business into international markets over the next five years to increase its global footprint and revenue. B. Tactical Plans 1. Definition: Shorter-term plans that specify how the strategic plans will be implemented. They are more specific than strategic plans and are developed by middle management. 2. Characteristics: o Focus on the implementation of strategic goals. o Typically cover a period of one to three years. o Examples: Developing a marketing campaign for a new product, improving customer service operations. 3. Example: A marketing department develops a one-year plan to promote a new product through social media, online advertising, and trade shows to support the company’s strategic goal of increasing market share. C. Operational Plans 1. Definition: Day-to-day plans that are specific and detailed, focusing on the short term. These are developed by first-line managers and are necessary for the operational functioning of the organization. 2. Characteristics: o Highly detailed and focus on specific tasks. o Cover a shorter period, often daily, weekly, or monthly. o Examples: Scheduling employee shifts, ordering inventory, setting sales targets for a specific quarter. 3. Example: A retail store manager creates a weekly staffing schedule and sets daily sales targets to ensure that the store meets its monthly revenue goals. 2.3 Decision-Making Process and Tools A. Decision-Making Process 2024-2025 Module for BA 110 (Fundamentals of Management and Marketing) | College of Commerce | University of San Agustin, Iloilo City, 5000, Philippines Page 2 of 5  COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP 1. Step 1: Identifying the Problem or Opportunity o Recognize that a decision is needed to address a problem or take advantage of an opportunity. o Example: A company notices a decline in customer satisfaction and needs to decide how to improve service quality. 2. Step 2: Gathering Information o Collect relevant data and information to understand the situation better. o Example: Conducting customer surveys, analyzing feedback, and reviewing service records. 3. Step 3: Developing Alternatives o Identify and generate multiple options or courses of action. o Example: Options could include retraining staff, improving product quality, or enhancing customer support services. 4. Step 4: Evaluating Alternatives o Assess each option based on its feasibility, risks, benefits, and alignment with organizational goals. o Example: Considering the costs and benefits of retraining employees versus hiring new staff. 5. Step 5: Making the Decision o Choose the best alternative based on the evaluation. o Example: Deciding to implement a comprehensive training program for all customer service representatives. 6. Step 6: Implementing the Decision o Put the chosen alternative into action. Ensure that resources are available and assign responsibilities. o Example: Scheduling training sessions, hiring trainers, and developing training materials. 7. Step 7: Monitoring and Evaluating the Decision o After implementation, monitor the outcomes to see if the decision is effective. Make adjustments if necessary. o Example: Tracking customer satisfaction metrics and feedback post-training. B. Decision-Making Tools and Techniques 1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) o A tool used to evaluate the internal strengths and weaknesses of an organization, as well as the external opportunities and threats it faces. o Example: A company uses SWOT analysis to identify its competitive advantages and market threats before launching a new product. 2. Cost-Benefit Analysis o A technique that involves comparing the costs and benefits of different alternatives to make the best decision. o Example: A company evaluates the costs of a new IT system against the expected efficiency gains and cost savings. 3. Decision Matrix o A tool that helps evaluate and prioritize a list of options by scoring them against a set of criteria. o Example: A business uses a decision matrix to choose the best vendor for its supply chain based on cost, quality, reliability, and delivery time. 2024-2025 Module for BA 110 (Fundamentals of Management and Marketing) | College of Commerce | University of San Agustin, Iloilo City, 5000, Philippines Page 3 of 5  COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP Teaching and Learning Activities A. Case Study (3 hours) Objective: Apply planning and decision-making concepts to a real-world business scenario. Activity: o Provide a detailed case study of a company facing a strategic decision (e.g., expansion, launching a new product, entering a new market). o Students will work in groups to analyze the case, identifying the problem, developing alternatives, and making a decision using decision-making tools. o Groups will present their findings and recommendations to the class. B. Group Work (3 hours) Objective: Differentiate between strategic, tactical, and operational plans in a practical context. Activity: o Divide students into groups and assign each group a different type of plan (strategic, tactical, operational). o Each group will develop a plan for a hypothetical company scenario, such as expanding into a new market, improving customer service, or streamlining operations. o Groups will present their plans, explaining how they align with the company’s overall objectives and how they would be implemented. Assessment Task: Case Study Report Task Description: Based on the case study, each group will prepare a detailed report analyzing the situation, identifying the problem, developing alternatives, and recommending a decision. The report should demonstrate the use of decision-making tools and highlight how planning plays a role in achieving organizational goals. Evaluation Criteria: o Analysis: Clear identification of the problem and analysis of the case. o Application: Effective use of planning concepts and decision-making tools. o Recommendation: Logical and well-supported recommendations. o Presentation: Clarity, organization, and professionalism of the report. Time Frame Total Time: 6 hours o Case Study: 3 hours o Group Work: 3 hours References 1. Robinson, S. P., & Judge, T. A. (2020). Organizational Behavior (19th ed.). Pearson Education. 2. Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Free Press. 3. Higgins, J. M. (2019). Strategic Planning for Public and Nonprofit Organizations (5th ed.). Jossey-Bass. 2024-2025 Module for BA 110 (Fundamentals of Management and Marketing) | College of Commerce | University of San Agustin, Iloilo City, 5000, Philippines Page 4 of 5  COLLEGE OF COMMERCE BUSINESS ADMINISTRATION AND ENTREPRENEURSHIP 4. Drucker, P. F. (2006). The Effective Executive: The Definitive Guide to Getting the Right Things Done. HarperCollins. 5. Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux. 2024-2025 Module for BA 110 (Fundamentals of Management and Marketing) | College of Commerce | University of San Agustin, Iloilo City, 5000, Philippines Page 5 of 5