Business Planning Test PDF

‭Business Planning Test‬ ‭SMART Goals:‬ ‭ pecific - specific and narrow for effective planning‬ S ‭Measurable - goal and progress are measurable‬ ‭Achievable - able to accomplish your goal within a certain time frame‬ ‭Relevant - align with your values and long-term objectives‬ ‭Time-Based -...

‭Business Planning Test‬ ‭SMART Goals:‬ ‭ pecific - specific and narrow for effective planning‬ S ‭Measurable - goal and progress are measurable‬ ‭Achievable - able to accomplish your goal within a certain time frame‬ ‭Relevant - align with your values and long-term objectives‬ ‭Time-Based - realistic and ambitious end date‬ ‭If we don’t set goals…. Lack of direction, Wasted Resources, Confused Employees‬ ‭Planning Approaches:‬ ‭Types of plans:‬ ‭-‬ ‭Long-range plans‬ ‭-‬ ‭Short-range plans‬ ‭-‬ ‭Strategic plans‬ ‭-‬ ‭Tactical plans‬ ‭-‬ ‭Operational plans‬ ‭-‬ ‭Policies and procedures‬ ‭-‬ ‭Budgets‬ ‭Long range planning typically done by high level managers. Short range planning typically done by low‬ ‭level managers. Mid range planning typically done by mid level managers.‬ ‭Strategic planning:‬ ‭-‬ ‭Used when planning for the entire organization as a whole‬ ‭-‬ ‭Longer-term plans that set broad directions and create a framework for allocating resources and‬ ‭max-performance impact‬ ‭-‬ ‭Strategic plans start with a vision of what the organization hopes to be in the future‬ ‭-‬ ‭These plans are dynamic - might change based on needs (contingency approach)‬ ‭Tactical planning:‬ ‭-‬ ‭Developed and used to implement strategic plans‬ ‭-‬ ‭Typically immediate long-term plans that state how resources can put strategies into action‬ ‭-‬ ‭Come in the form of functional plans‬ ‭Operational Plans:‬  -‭ ‬ ‭Identify what needs to be done in the short-form and in response to different situations‬ ‭-‬ ‭Things like policies and procedures‬ ‭-‬ ‭Budgets that are used for one specific task or time period‬ ‭Policy:‬ ‭-‬ ‭Broad guidelines for making decisions and taking action in specific situations. EX hiring, firing,‬ ‭promotions policies‬ ‭Procedure:‬ ‭-‬ ‭Describe exactly what actions are supposed to be taken in specific situations‬ ‭-‬ ‭SOP (Standard Operating Procedure)‬ ‭Budget:‬ ‭-‬ ‭Single use plans that commit resources for specific time periods to activities, projects, or‬ ‭programs‬ ‭-‬ ‭Rolled over budget is when the budget from the previous year is carried forward to the next year‬ ‭with an incremental adjustment, but no review takes place; Can end up way overspending,‬ ‭underspending or wasting resources‬ ‭-‬ ‭Best to continually track progress of the budget is doing‬ ‭Planning Tools and techniques:‬ ‭-‬ ‭Forecasting‬ ‭-‬ ‭Predicting what will happen in the future‬ ‭-‬ ‭Qualitative forecasting is when expert opinions are used to predict the future‬ ‭-‬ ‭Not 100%, should be used as a planning aid, not substitute‬ ‭-‬ ‭Contingency planning‬ ‭-‬ ‭When you identify alternative courses of action for when things go wrong‬ ‭-‬ ‭Having a plan A,B,C,D and a procedure in place to execute it‬ ‭-‬ ‭Scenario Planning‬ ‭-‬ ‭Long-term contingency planning‬ ‭-‬ ‭Identify alternative future scenarios that might occur and what you would do in each case‬ ‭-‬ ‭Benchmarking‬ ‭-‬ ‭Using external and internal comparisons to evaluate current performance and plan for‬ ‭future improvements‬ ‭-‬ ‭Find out what other organizations/individuals are doing well, and incorporate those ideas‬ ‭into your own operations‬ ‭-‬ ‭Project managers‬ ‭-‬ ‭Keeps everyone on track with objectives‬ ‭-‬ ‭Sometimes hired by a project, or permanently as a resident project manager‬ ‭Swot Analysis:‬ ‭ trengths‬ S ‭Weaknesses‬ ‭Opportunities‬ ‭Threats‬ ‭-‬ ‭ aximizes the potential of the strengths and opportunities while minimizing the impact of the‬ M ‭weaknesses and threats‬ -‭ ‬ ‭ONGOING‬ ‭-‬ ‭Internal Factors‬ ‭-‬ ‭Strengths and weaknesses‬ ‭-‬ ‭Identify an organization's core competencies‬ ‭-‬ ‭Core Competencies are the particular strengths that give an organization‬ ‭-‬ ‭Examples of core competencies: special knowledge/expertise, superior technology,‬ ‭unique distribution channels‬ ‭-‬ ‭External Factors‬ ‭-‬ ‭Opportunities and Threats (external environmental factors)‬ ‭-‬ ‭Macroeconomic factors: technology, government, population demographics, the global‬ ‭economy and the natural environment‬ ‭-‬ ‭Industry environment factors: suppliers, competitors and customers‬ ‭-‬ ‭Internal analysis: Examine the capabilities of your organization. Analyze strengths and‬ ‭weaknesses‬ ‭-‬ ‭External analysis: Opportunities are characteristics of external factors that have a potential to help‬ ‭the organization achieve or exceed its strategic goals. Threats are characteristics of external‬ ‭factors that may prevent the organization from achieving its strategic goals‬ ‭-‬ ‭Goal: You can use this information to help you develop a strategy that uses the strengths and‬ ‭opportunities to reduce the weaknesses and threats, and to achieve the objectives of your‬ ‭organization.‬ ‭PEST:‬ ‭ olitical environment‬ P ‭Economic environment‬ ‭Socio-Cultural environment‬ ‭Technological environment‬ ‭ olitical environment: Law and regulations, government policies‬ P ‭Economic environment: General environment influenced by customer spending, resource supplies, and‬ ‭investment capital.‬ ‭Socio-Cultural environment: Norms, customs, social values, gender roles‬ ‭Technological environment: Developments in technology and the edge of technology revolution‬ ‭Porter’s five forces:‬ -‭ ‬ ‭ uppliers; Bargaining power of suppliers‬ S ‭-‬ ‭New Entrants; Threat of potential new competitors‬ ‭-‬ ‭Customers; Bargaining power of customers‬ ‭-‬ ‭Substitute Products; Threat of substitute products‬ ‭-‬ ‭Industry competition; Rivalry among competing firms‬ ‭Unattractive Industry:‬ ‭-‬ ‭Rivalry among competitors are intense‬ ‭-‬ ‭Substantial threats exists in forms of new entrants‬ ‭-‬ ‭Substitute products are available‬ ‭-‬ ‭Suppliers and buyers are very powerful in terms of bargaining over price and quality‬ ‭Attractive Industry:‬ ‭-‬ ‭Less competition‬ ‭-‬ ‭Few threats of new entrants‬ ‭-‬ ‭None or few substitutes available‬ ‭-‬ ‭Low bargaining power among suppliers and buyers‬ ‭The Action Learning Cycle:‬ ‭Plan - Act - Observe - Reflect‬ ‭Vision:‬ ‭Where the business/company wants to be in the future‬ ‭-‬ ‭Customers; What are they saying about the organization‬ ‭-‬ ‭Employees; What are they saying about the organization‬ ‭-‬ ‭Competitors/Stakeholders; What are they saying about the organization‬ ‭-‬ ‭Actions: What actions were taken to achieve success‬ ‭-‬ ‭Results: Visualize the results that were achieved‬ ‭Mission:‬ ‭-‬ ‭Core purpose of the organization‬ ‭Risk analysis:‬ ‭-‬ ‭ ssessing the likelihood of different events occurring within the corporate, governmental, or‬ A ‭environmental factors‬ ‭1.‬ ‭Identify the risks‬ ‭2.‬ ‭Identify the certainty‬  3‭.‬ ‭Identify the the impact‬ ‭4.‬ ‭Identify the procedure in each case - mitigate risks‬ ‭Likelihood: improbable, probable, and possible‬ ‭Impact: acceptable, tolerable, unacceptable, intolerable‬ ‭Benefits of Planning:‬ ‭-‬ ‭Provides a guide for action‬ ‭-‬ ‭Direct everyone’s actions towards desired outcomes‬ ‭-‬ ‭When actions are coordinated and focused on specific outcomes, they are much more‬ ‭effective‬ ‭-‬ ‭Improves resource utilization‬ ‭-‬ ‭Helps managers determine where resources are most needed so they can be allocated‬ ‭where they will provide the most benefit‬ ‭-‬ ‭Provide motivation and commitment‬ ‭-‬ ‭People are more likely to work toward a goal they know and understand‬ ‭-‬ ‭Sets clear expectations‬ ‭-‬ ‭Sets performance standards‬ ‭-‬ ‭Good for assessing when things are progressing and when they need correction‬ ‭-‬ ‭Allows flexibility‬ ‭Drawbacks of Planning:‬ ‭-‬ ‭Prevents action‬ ‭-‬ ‭Managers can get so focused on planning, they forget to implement the plans; “Death by‬ ‭Planning”‬ ‭-‬ ‭Complacency‬ ‭-‬ ‭Failing to monitor the progress of the plan or to detect changes in the environment‬ ‭-‬ ‭Prevent flexibility‬ ‭-‬ ‭Mid and low level managers may feel that they must follow a plan even when their‬ ‭experience shows it is not working‬ ‭-‬ ‭Instead of reporting problems to upper management, they will continue to devote time‬ ‭and resources to ineffective actions‬ ‭-‬ ‭Inhibit creativity‬ ‭The Decision Making Process:‬ ‭.‬ 1 I‭ dentify and define the problem‬ ‭2.‬ ‭Generate and evaluate alternative solutions‬ ‭3.‬ ‭Choose a preferred course of action and conduct ethics double-check‬ ‭4.‬ ‭Implement the decision‬ ‭5.‬ ‭Evaluate results‬ ‭Organizational Changes:‬  ‭-‬ ‭ hen big changes happen they are lead by a change leader, who takes on the responsibility of‬ W ‭trying to change the behavior of people or social systems‬ ‭Incremental:‬ ‭-‬ ‭ akes bends and adjustments to improve performance‬ M ‭-‬ ‭Planned‬ ‭-‬ ‭Modify current systems through continuous improvements‬ ‭-‬ ‭Often changes in products, processes, technologies and work system‬ ‭.‬ 1 ‭ onduct an analysis of current situations‬ C ‭2.‬ ‭Set a goal‬ ‭3.‬ ‭You can talk to your employees to find out their ideas‬ ‭4.‬ ‭Plan things in changes‬ ‭5.‬ ‭Communicate wins‬ ‭Transformational:‬ -‭ ‬ ‭ lanned‬ P ‭-‬ ‭Results in major and comprehensive redirection of the organization‬ ‭-‬ ‭Fundamental shifts in strategies, culture, structures, or the underlying sense of purpose or‬ ‭mission‬ ‭-‬ ‭Highly intense, stressful and complex to achieve‬ ‭Stages of transformational change:‬ ‭.‬ 1 ‭ re-contemplation‬ P ‭2.‬ ‭Contemplation‬ ‭3.‬ ‭Preparation‬ ‭4.‬ ‭Action‬ ‭5.‬ ‭Maintenance‬ ‭What brings change?‬ -‭ ‬ ‭ rying to keep up with competitors‬ T ‭-‬ ‭Technology‬ ‭-‬ ‭Acquisitions‬ ‭-‬ ‭Growth‬ ‭-‬ ‭Fear of failure‬ ‭-‬ ‭Poor performance‬ ‭-‬ ‭Communication‬ ‭Targets of Change:‬  ‭-‬ ‭ asks: nature of work as represented by mission, objectives, strategy, and the job designs for‬ T ‭individuals and groups‬ -‭ ‬ ‭People: attitudes and competencies of employees and the HR systems‬ ‭-‬ ‭Culture: Value system for the organization as a whole, and norms guiding individual and group‬ ‭behavior‬ ‭-‬ ‭Technology: Operations and information technology used to support job designs, arrange‬ ‭workflows, and integrate people and machines in systems‬ ‭-‬ ‭Structure: configuration of the organization, including its design features and lines of authority‬ ‭and communication‬ ‭Managing planned change:‬ ‭1.‬ ‭Unfreezing‬ ‭-‬ ‭Situation is prepared to change‬ ‭-‬ ‭After feelings have developed that there is need for change‬ ‭-‬ ‭Needs to be a sense of urgency created to get people on board and to develop a group of‬ ‭people who support the idea‬ ‭2.‬ ‭Changing‬ ‭-‬ ‭When the planned change actually takes place‬ ‭-‬ ‭Should happen after a good diagnosis has been given to the problem, and alternatives‬ ‭have been evaluated‬ ‭3.‬ ‭Refreezing‬ ‭-‬ ‭After the change‬ ‭-‬ ‭Efforts made to stabilize the change and create conditions for its long-term continuity‬ ‭-‬ ‭Linking change with rewards, positive reinforcement, and resource support‬ ‭-‬ ‭Most common era: celebrating victory too soon‬ ‭Change Strategies:‬ ‭-‬ ‭Force-Coercion‬ ‭-‬ ‭Uses formal authority, rewards, and punishments to invoke acceptance of change‬ ‭-‬ ‭Based on the belief that people are motivated by self-interest and what the situation offers‬ ‭in terms of personal gains and losses‬ ‭-‬ ‭Direct Forcing‬ ‭-‬ ‭Uses direct and unilateral action to command that change takes place‬ ‭-‬ ‭Political maneuvering‬ ‭-‬ ‭Change agent works indirectly to gain an advantage over the other people and‬ ‭make them change‬ ‭-‬ ‭Bargaining, gaining control of important resources, forming alliances, or granting‬ ‭small favors‬ ‭-‬ ‭Threats of write-ups, demotions, pay cuts, lay offs, etc.‬ ‭-‬ ‭Rational Persuasion‬ ‭-‬ ‭Uses special knowledge, empirical data, and rational argument to persuade people into‬ ‭accepting change‬  -‭ ‬ ‭ eople are naturally rational and guided by reason‬ P ‭-‬ ‭Demonstrate the course of action justified by information and facts, and assume that‬ ‭people will believe them and want to adopt the change‬ ‭-‬ ‭Longer lasting, and more internalized‬ ‭-‬ ‭Ex. when a doctor tells you you need to stop smoking‬ ‭-‬ ‭Shared Power‬ ‭-‬ ‭Collaboration to identify values, assumptions, and goals from which support for change‬ ‭will naturally emerge‬ ‭-‬ ‭Slow, but likely to yield high commitment‬ ‭-‬ ‭Could lose control or compromise company values‬ ‭Why do people resist change?‬ ‭-‬ ‭Mistrust and lack of confidence‬ ‭-‬ ‭They're emotional‬ ‭-‬ ‭Lack of training and resources‬ ‭-‬ ‭Fear of failure‬ ‭-‬ ‭Poor change communication‬ ‭-‬ ‭Unrealistic timelines‬ ‭Types of Control:‬ ‭Feedforward control‬ ‭-‬ ‭Takes place before a work activity begins‬ ‭-‬ ‭Ensures objectives are clear, proper directions are established, resources are available‬ ‭-‬ ‭Goal is to stop problems before they happen‬ ‭-‬ ‭Ex. a preventative maintenance program‬ ‭Concurrent control‬ ‭-‬ ‭What happens during work process‬ ‭-‬ ‭Makes sure things are happening according to plan‬ ‭-‬ ‭Ex. shift leaders at joey make sure things are running smoothly support if there is something‬ ‭going wrong‬ ‭Feedback control‬ ‭-‬ ‭After work is completed‬ ‭-‬ ‭Focus on quality of end results instead of inputs and activities‬ ‭-‬ ‭Reactive; what would we repeat, what would we change‬ ‭-‬ ‭Ex. survey after eating at a restaurant‬ ‭The Control Process:‬ ‭1.‬ ‭Establish performance objectives and standards‬ ‭-‬ ‭Plan what you want to accomplish‬ ‭-‬ ‭Set output standards: measure actual outcomes or work results. Ex, sales growth, market‬ ‭growth, delivery time, error rates‬  ‭-‬ ‭ et input standards: measure work efforts. Ex. following rules, efficiency in using‬ S ‭resources, work attendance‬ ‭2.‬ ‭Measure actual performance‬ ‭-‬ ‭Document results‬ ‭.‬ ‭Compare actual performance with objectives and standards‬ 3 ‭-‬ ‭Need for action = desired performance-actual performance‬ ‭4.‬ ‭Take corrective action, as needed‬ ‭Progressive Discipline:‬ ‭.‬ 1 ‭ erbal Warning‬ V ‭2.‬ ‭Letter of concern/written warning‬ ‭3.‬ ‭Letter of reprimand/final warning‬ ‭4.‬ ‭Suspension without pay‬ ‭5.‬ ‭Dismissal‬