Unit 3 business leadership

3 benefits of planning

Improves your focus on your goals

Improves companies ability to adapt

Improves co-ordination

How long is a short medium and long term plan

short = 1 year or less

medium = 1-2 years

long = 3 years or more

Define 3 types of plans and what type of management uses it

Tactical plans - Identifies how an organization can use its resources to follow through with plans, used by middle level management

Operational plans - identifies short term plans for the organization, used by low level management

Strategic Plans - identifies long term plans for an organization to reach its goals, used by top management.

Policy vs Procedures

Policies are broad guidelines on what to do in situations

Procedures are exact plans on what to do in situations

Define the 4 planning tools

Forecasting - Predicting what will happen in the future

Benchmarking - Comparing yourself to everyone else to see how you can improve your performance

Contingency Planning - Planning based on one changing circumstance

Scenario Planning - Planning based on multiple circumstances

3 definitions of a change leader

3 definitions of a status quo manager

Change Leader

1. Expects surprise

2. Makes things happen

3. Supports creativity

Status quo manager

1. Prefers predictability

2. Waits for things to happen

3. Avoids creativity

3 ways time management is important in planning

Gives you enough time to the steps towards your goals

Helps reduce stress

Makes sure you don’t fall behind

Top down change

vs

Bottom down change

Top down change

• Top management telling lower management what needs to change

• Not very successful

Bottom up change

• Organization works together to figure out what needs to change

• Very successful

Reactive vs Planned change

Reactive change

• Responding to situations after they occur

Planned change

• Planning for potential situations before they occur

3 ways managers can help employees cope with change

Communicate the change with them

Train them for the change

Letting them have a say in these changes

Define organizational culture, and 3 ways it influences employees

The shared values, and beliefs that influence how people behave in an organization

Organizational culture influence that way employees

• Dress

• Act

• Perform at their job

What is core culture

An organizations core principal and values

Impact organizational culture has on strategic planning

Organizational culture sets the guidelines for strategic planning

Controlling

The process of measuring performance and taking action to reach your goals

Feedforward Controls:

Ensure objectives are clear, and the right resources are available

Concurrent Controls:

Ensure things are being done according to plan

Feedback Controls

Ensure final results are up to standards, and seeing what went right and wrong during performance

3 hot stove rules of employee discipline

• Punishment should be immediate

• Punishment should be consistent

• Punishment should only be towards a persons actions

3 Growth strategies

Making new products

Merging with other corporations

Partnering with companies in other countries

3 retrenchment strategies

Fixing specific performance problems

Downsizing company

Selling off part of the company

SWOT analysis

Strengths - advantages

Weaknesses - disadvantages

Opportunities - Ways to grow

Threats - external challenges

Porters five forces (REMEMBER THEY CAN BE LOW MEDIUM OR HIGH)

1. Threat of new entrants (threat of competition)

2. Bargaining power of suppliers (ability of suppliers to influence price for their resources)

3. Bargaining power of customers (ability of customers to influence price)

4. Threat of substitute products (availability of alternatives)

5. Industry competition (rivalry among companies)