Chapter 5 - Planning: the foundation of successful management. In this chapter, you will learn: How do I tend to deal with uncertainty, and how can planning help? What are mission and vision statements, and what are three types of planning and goals? What are SMART goals and MBO, and how can they be implemented? How does the planning/control cycle help keep a manager’s plans headed in the right direction? | Chapter Five Planning: The Foundation of Successful Management McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Major Questions You Should Be Able to Answer How do I tend to deal with uncertainty, and how can planning help? What are mission and vision statements, and what are three types of planning and goals? What are SMART goals and MBO, and how can they be implemented? How does the planning/control cycle help keep a manager’s plans headed in the right direction? Planning & Uncertainty Planning coping with uncertainty by formulating future courses of action to achieved specified results setting goals and deciding how to achieve them Planning & Strategic Management Figure Four Basic Strategy Types Defenders expert at producing and selling narrowly defined products Defenders “Let’s stick with what we do best, avoid other involvements experts at producing and selling narrowly defined products Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- Four Basic Strategy Types Prospectors focus on developing new products and in seeking out new markets, rather than waiting for things to happen Prospectors “Let’s create our own opportunities, not wait for them to happen” focus on developing new products and in seeking out new markets, rather than waiting for things to happen Four Basic Strategy Types Analyzers let other organizations take the risks of product development and marketing and then imitate what seems to work best Analyzers – “Let others take the risks of innovating, & we’ll imitate what works best” Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- Four Basic Strategy Types Reactors make adjustments only when finally forced to by environmental pressures Reactors – “Let’s wait until there’s a crisis, then we’ll react” The Adaptive Cycle Adaptive Cycle businesses are continuously cycling through decisions about three kinds of business problems: (1) entrepreneurial, (2) engineering, and (3) administrative Entrepreneurial – selecting and making adjustments of products and markets Engineering – producing and delivering the products Administrative – establishing roles, relationships, and organizational processes Multimedia Lecture Support Package to Accompany Basic Marketing Lecture Script 6- Making Plans Figure Three Levels of Management, Three Types of Planning Figure Goals, Action Plans & Operating Plans Action plan defines the course of action needed to achieve the stated goal Goals, Action Plans & Operating Plans Operating plan designed for a one-year period defines how you conduct your business based on the action plan identifies clear targets such as revenue, cash flow, and market share Three Types of Objectives Used in MBO Table The Planning/Control Cycle Figure
