Chapter 3: planning

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the objectives of an organization or project.

Goal

A specific result or achievement that an organization or project aims to accomplish through its planning efforts, in a specific timeframe.

Short-term goal

is something an organization wishes to accomplish in a short time period, usually less than a year.

Long term goal

is an objective that an organization aspires to achieve over an extended period, typically more than a year, and often involves significant planning and resource allocation.

Smart goal

is a framework for setting objectives that are Specific(straightforward), Measurable(progress should be measurable), Achievable(needs to be attainable), Realistic(must be realistic), and timely(should be accomplished by a definitive date), ensuring clarity and focus in planning.

Strategic plan

Is a plan designed to achieve long-term goals of organization as a whole. Plan projects for the future. Written by senior management.

Tactical plan

Is a plan involving activities needed to implement strategic plans defined by senior management. INcludes short-term goals. Written and executed by middle level managers.

Operational plan

Is a plan that defines day to day tasks and activities that employees must perform to meet company goals. (Usually written for the quarter and then the year, used by supervisory management to define job responsibilities outlined in tactical plans.)

Contingency plan

Is a backup plan that outlines alternative courses of action to take if other plans prove unproductive or circumstances beyond control change.(Management considers operating problems and natural disasters, good management requires “keeping all options open”)

Market research

Is gathering and analyzing informations to help make sound marketing decisions. (includes reviewing environment in which organization operates.)

Internal factors

are those that an organization can control.

external factors

are those that an organization cannot control.

Primary research

Is first- hand research conducted by researcher, either someone in an organization, outside agency to provide market research. (examples: surveys, focus groups, case studies.)

Secondary research

is data already collected and recorded by someone else and others can use it. (EX: internet data on industry sales informations and statistics, government sources, industry data, academic data.)

Market analysis

is process of gathering and analyzing informations about markets, customers, industry trends, new technology, competing businesses to help plan for future. (used to define target markets, learn about needs and wants of consumers, understand what motivates people to buy)

competition

is two or more businesses attempting to attract same customers.

Competitive analysis

Is a tool used to compare the strengths and weaknesses of a business with those of competing businesses.

Market size

total sales per year for a specific product held by all the competing businesses.

market share

percentage of total sales in market held by one business.

Market potential

maximum number of customers and amount of sales that can be generated from a specific segment in a defined timeframe.

Revenue

Is the money that a business makes from goods and services it sells; also called income or sales.

Sales forecast

or a projection, is prediction of future sales based on past sales and market analysis for specific time period.

Management informations system

Is integrated system of computer hardware and software that gathers information and presents it in manner to be used in decision making process.

Strategic plan

plan I designed to achieve long term goals of organization as a whole.

Mission statement

Organization message to customers about why business exist.

Vision statement

what business aspires to accomplish.

Business plan

Written document that describes a business, how it operates, and how it makes a profit. (written when business is started and update every year)

planning tool

is instrument that guides plans into action.

Swot analysis

is identification of organizations strengths, weaknesses, opportunities, and threats.

PEST analysis

is evaluation of political, economic, social, and technological factors in a certain market or geographic region that may affect success of business

Tactic

is a strategy or action planned to reach end goal.

Budget

which is a financial plan that reflects anticipated revenue in numerical terms and shows how it will be allocated in operation of business

Schedule

is a plan that identifies time and resources needed to complete task and activities.

policy

is a set of rules that regulations that guides the decision-making process.

procedure

is a description of how to complete a task and how policy will be applied.