Chapter 5

• Goal - desired future circumstance or condition that the organization attempts to realize
• plan - blueprint for goal achievement specifying the necessary resource allocations, schedules, tasks and other actions
• Planning - determining the organization's goals and defining the means for achieving them
• Goal + Plan = planning
• Level of Goals and Plans

  1. Operational Goals/Plans
  2. Tactical Goals/Plans
  3. Strategic Goals/Plans
  4. Mission Statement
• Strategic goals - official goals; broad statements describing where the organization wants to be in the future
• Strategic Plans - define the action steps by which the company intends to attain strategic goals
• Tactical goals - results that major divisions and departments within the organization intend to achieve

  Tactical plans - define what major departments and organizational subunits will do to implement the organization's strategic plan
• Operational goals - results expected from departments, work groups and individuals
• Operational plans - developed at the lower levels of the organization to specify action plans toward achieving operational goals and to support tactical activities
• Mission - organization's reason of existence
• Coalition management - building an alliance of people who support managers and influence efforts toward achieving goals
• Key Performance Indicators - tool used to assess what is important to an organization and how well the organization is progressing toward achieving its strategic goal
• Key Performance Indicators - tool used to assess what is important to an organization and how well the organization is progressing toward achieving its strategic goal
• MBO - system whereby manager and employees define goals for every department, project, and person and use them to monitor subsequent performance
• MBM - new systematic approach that focuses attention on the methods and processes used to achieve goals
• Strategic management - set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
• Strategy - plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals
• Competitive Advantage - what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace
• SWOT analysis - audit of internal and external factors
• SBU - business division of the organization that has a unique business mission, product line, competitors, and markets relative to other SBUs in the corporation
• Portfolio strategy - pertains to the mix of SBUs and product lines to provide synergy and competitive advantage
• BCG matrix - organizes business along two dimensions - business growth rate and market share
• Four categories for a corporate portfolio

  • Star
  • Cash Cow
  • Dog
  • Bright prospect
• Diversification - strategy or moving into new lines of business
• Merger - occurs when two or more organizations combine to become one
• Related diversification - expansion into new business related to existing business activities
• Differentiation strategy - distinguish product and services

  Cost leadership strategy - aggressively seek efficient facilities, cost reductions, and cost controls

  Focus strategy - concentration on a specific region or buyer