Planning: The Foundation of Successful Management

Flashcards covering key concepts from Chapter 5 on planning and strategic management.

What is strategic management?

Strategic management involves all managers in strategy formation and implementation.

What are the three components of a mission statement?

The mission statement answers the questions: 'What is our reason for being?'

What is the purpose of a vision statement?

The vision statement answers the question: 'What do we want to become?'

What are SMART goals?

SMART goals are Specific, Measurable, Attainable, Results-oriented, and have a Target Date.

Define sustainable competitive advantage.

The ability of an organization to remain ahead in areas such as responsiveness, innovation, quality, and effectiveness.

What is the difference between long-term and short-term goals?

Long-term goals are strategic and typically planned for 1-5 years, while short-term goals are tactical and planned for 6-24 months.

What are operational plans?

Plans designed by first-line managers for the next 1-52 weeks to implement tactical and strategic goals.

What does the planning/control cycle involve?

The planning/control cycle involves establishing objectives, assessing realities, formulating strategies, implementing plans, and maintaining strategic control.

What are the four steps in Management by Objectives (MBO)?

Set objectives, develop an action plan, periodically review performance, and give performance appraisal and rewards.

How can deadlines impact goal achievement?

Deadlines concentrate focus, help ignore distractions, and provide feedback mechanisms.