MGMT 161 - Chapter Four: Planning and Strategic Management

Vocabulary flashcards covering planning concepts, goal-setting models, dimensions of planning, planning tools, the strategic management process, and common competitive strategies from Chapter 4.

Planning

The primary management function that involves setting goals, establishing strategies, and developing plans to coordinate activities, provide direction, reduce uncertainty, minimize waste, and set standards for controlling.

Formal Planning

A systematic planning process that results in written, documented plans with specific goals, explicit timelines, assigned responsibilities, and standardized progress measurement.

Informal Planning

A planning approach that is unwritten and adaptable, consisting of general ideas kept in a manager's head or discussed casually with little or no formal progress measurement.

Goals (Objectives)

Desired organizational outcomes or targets that define where an organization is going and provide benchmarks for measuring success.

Plans

Documents that outline how goals will be met, specifying resource allocations, schedules, and necessary action steps.

Traditional Goal Setting

An approach to goal setting where objectives are defined by top-level management and then cascade downward through organizational levels as guidance from above.

Management by Objectives (MBO)

A goal-setting process in which managers and employees jointly determine specific performance objectives, periodically review progress, and allocate rewards based on achievement.

Strategic Plans

Broad, big-picture plans that apply to the entire organization, establish overall direction, and typically feature a longer-term horizon.

Operational Plans

Plans that encompass specific, day-to-day, weekly, or monthly tactical activities and detailed operational procedures over a short-term horizon.

Long-Term Plans

Plans that extend beyond a time frame of one year.

Short-Term Plans

Plans that cover a time frame of one year or less.

Specific Plans

Plans that are clearly defined, detailed, and leave no ambiguity or room for personal interpretation.

Directional Plans

Flexible plans that establish broad guidelines and general direction without locking managers into rigid, specific objectives.

Single-Use Plans

One-time plans specifically developed to address the unique requirements of an exceptional or non-recurring situation.

Standing Plans

Ongoing, multiuse plans that provide standardized guidance for organizational activities performed repeatedly over time.

Forecasting

A planning technique that attempts to predict future conditions and events through the systematic analysis of past and present data.

Contingency Planning

The development of predetermined alternative action plans to implement when actual operating conditions or outcomes deviate from expectations.

Scenario Planning

A planning tool that involves projecting several plausible future conditions and formulating tailored responses for each distinct scenario.

Benchmarking

The practice of comparing organizational processes and metrics against superior industry practices or competitors to identify areas for improvement.

Process Planning

Designing an operational framework that defines the sequential, step-by-step procedures required to accomplish a given goal.

Environmental Scanning

The comprehensive collection and evaluation of external information to identify emerging trends, opportunities, and threats affecting an organization.

Competitive Intelligence

A specific form of environmental scanning focused on gathering accurate, actionable data regarding competitors and market rivals.

Strategic Management

The continuous managerial process of formulating, implementing, and evaluating corporate strategies to achieve competitive advantage and long-term organizational goals.

Vision

A strategic statement that articulates what an organization aspires to become in the future.

Mission

A formal statement that defines an organization's fundamental purpose, core identity, and reason for existence.

SWOT Analysis

A foundational strategic planning assessment that integrates internal Strengths and Weaknesses with external Opportunities and Threats.

Strengths

Internal organizational capabilities, positive attributes, or unique resources that give an organization an operational or competitive advantage.

Weaknesses

Internal activities that an organization does not perform well, or critical assets and capabilities it lacks compared to rivals.

Opportunities

Positive external environmental factors, trends, or market circumstances that an organization can exploit to fuel growth and success.

Threats

External environmental conditions, regulations, or economic headwinds that pose obstacles or potential damage to organizational performance.

Growth Strategy

A grand corporate strategy directed toward expanding business operations by increasing sales, customer base, locations, products, or company size.

Concentration

A growth strategy where an organization expands by focusing entirely on growing its existing primary line of business and industry footprint.

Vertical Integration

A growth strategy in which an organization gains control of its supply chain by expanding backward into supplier operations or forward into distribution channels.

Horizontal Integration

A growth strategy where a company acquires, merges with, or combines operations with a direct industry competitor.

Diversification

A growth strategy where an organization moves into completely different, unrelated product categories or industry sectors.

Stability Strategy

A corporate strategy where an organization continues its current operations without pursuing active expansion or risking operational decline.

Competitive Advantage

The distinctive edge an enterprise holds over its competitors that enables it to generate superior value and distinctive market positioning.

Core Competencies

An organization's standout capabilities and specialized skills that allow it to perform key activities better than competitors can match.

Cost Leadership Strategy

A competitive strategy that focuses on achieving the lowest cost of operations, production, or distribution across an industry.

Differentiation Strategy

A competitive strategy where an enterprise creates distinct, innovative, and valued product or service features that set it apart from competitors.

Focus Strategy

A competitive strategy directed at serving a narrow market niche or specialized customer segment with either a cost or differentiation approach.