The document discusses planning and control techniques used by managers. It covers the planning process, types of plans like short and long-range plans. It also discusses the control process and types of controls. Specific tools for planning and control are outlined, like Gantt charts, balanced scorecards, and financial ratios. Strategic management and formulation of strategies is also summarized, including Porter's five forces model and strategic leadership.

1. PLANS AND PLANNING TECHNIQUE
Chapter 5

2. HOW DO MANAGERS USE THE PLANNING
PROCESS?
 Planning is one of the four functions of
management

3.  Planning is the process of setting objectives and
identifying how to achieve them
 Steps in the Planning Process:
 Step 1: Define your objectives
 Step 2: Determine where you stand vis a vis
objectives
 Step 3: Develop premise regarding future
conditions

4.  Step 4: Make a plan
 Step 5: Implement the plan and evaluate results
 Objectives: specific results that one wishes to
achieve
 Plan : statement of intended means for
accomplishing objectives

5.  Good planning makes us…
 Action Oriented
 Priority Oriented
 Advantage Oriented
 Change Oriented
 Planning provides focus and orientation
 The complacency trap is being lulled into inaction
by current successes or failures

6.  Planning improves coordination and control
 In a hierarchy of objectives, lower-objectives help achieve higher-level ones
 Planning improves time management

7. WHAT TYPES OF PLANS DO MANAGERS USE?
 Managers use short-range and long-range plans
 Short-range plans – covers a year or less
 Long-range plans- covers three years or more
 Strategic plans – identifies long-term decisions for
the organization
 Vision – clarifies purpose of the organization and
expresses what it hopes to be in the future

8.  Operational Plan/ Tactical Plans : sets out ways to
implement a strategic plans
 Functional Plans: identifies how different parts of an
enterprise will contribute to accomplishing strategic
plans
 Organizational policies and procedures are plans
 Policy: standing plans that communicates broad
guidelines for decisions and action

9.  Procedure/ Rule: precisely describes actions to
take in specific situations
 Budgets are plans that commit resources to
activities
 Zero-based resources: allocates resources as if
each budget was brand-new
 Forecasting tries to predict the future
 Contingency planning creates backup plans for
when things go wrong

10.  Scenario planning crafts plans for alternative future
conditions
 Benchmarking identifies best practices used by
others
 Participatory planning improves implementation
capacities

12.  Goal setting helps align plans and activities throughout
an organization
 Stretch goals are performance targets that we have to
work extra hard and stretch to reach

13. CONTROLS AND CONTROL SYSTEMS
Chapter 6

14. HOW AND WHY DO MANAGERS USE THE CONTROL
PROCESS?
 Controlling is one of the four functions of
management
 Controlling: the process of measuring performance
and taking action to ensure desired results
 After-action review: structured review of lessons
learned and results accomplished through a
completed project, task force assignment or special
operations

15.  Control begins with objectives and standards

16.  Output standards: measures performance results in
terms of quantity, quality, cost or time
 Input standards: measures work effort that goes
into a performance task
 Control measures actual performance
 Control compares results with objectives and
standards

17.  Control takes corrective actions as needed
 Management by exception: focuses attention on
differences between actual and desired
performance

18. WHAT TYPES IF CONTROLS ARE USED BY
MANAGERS?
 Managers use feedforwad, concurrent, and
feedback results

19.  Feedforward: ensures clear directions and needed
resources before the work begins
 Concurrent control: focuses on what happens
during the work process
 Feedback: takes place after completing an action
 Managers use both external and internal controls

20.  Internal control/ self control: occurs as people
exercise self-discipline in fulfilling job expectations
 External control: occurs through direct supervision
or administrative systems
 Bureaucratic control: influences behavior through
authority, policies, procedures, job descriptions,
budgets, and day-to-day supervision

21.  Clan control: influences behavior through social
norms, and peer expectations
 Market control: the influence of market competition
on the behaviors of organizations and their
members

22.  Managing objectives is a way to integrate planning
and controlling

23.  Managing by objectives: a process of joint objective
setting between a superior and a subordinate
 Improvement objectives: documents intentions to
improve performance in a specific way
 Personal development objectives: documents
intentions to improve personal growth, such as
expanded job knowledge or skills

24. WHAT ARE SOME USEFUL CONTROL TOOLS AND
TECHNIQUES?
 Quality control is a foundation of modern management
 Total Quality Management (TQM): commits to quality
objectives, continuous improvement and doing things
right the first time
 Continuous improvement: involves always searching for
new ways to improve work quality and performance
 Control charts: graphical ways of displaying trends so
that exceptions to the quality standards can be identified

25.  Six sigma: quality standard of 3.4 defects or less per
million products or service deliveries
 Gantt Chart and CPM/PERT are used in project
management and control
 Project: one time activities with many competent tasks
that must be completed in proper order and according to
budget
 Project management: makes sure activities required are
to complete a project are planned well and accomplished
on time

26.  Gantt Chart: graphically displays the scheduling of
tasks required to complete the project
 CPM/PERT: is a combination of critical path method
and program evaluation and review technique.
 Critical path: the pathway from project start to
conclusion that involves activities with the longest
completion times

27.  Critical path

28.  Inventory controls help save costs
 Inventory control: ensures that inventory is only big
enough to meet immediate needs
 Economic order quantity method: places new orders
when inventory levels fall to predetermined points
 Just in Time (JIT) scheduling: routes materials to
workstations just in time of use

29.  Breakeven analysis shows where revenues will
equal costs
 Breakeven point: occurs where revenues equal
costs
 Breakeven analysis performs what-if calculations
under different revenue and cost conditions.

31.  Financial ratios measure key areas of financial
performance

32.  Balanced scorecards help top managers exercise
strategic control
 Balanced scorecard: measures performance on
financial, customer service, internal process, and
innovation and learning goals

33. STRATEGY AND STRATEGIC
MANAGEMENT
Chapter 7

34. WHAT TYPES OF STRATEGIES ARE USED BY
ORGANIZATIONS?
 Strategy is a comprehensive plan for achieving
competitive advantage.
 Corporate strategy: sets long term direction for total
enterprise
 Business strategy: identifies how a division or
strategic business unit will compete in its product or
service domain
 Functional strategy: guides activities within ne
specific area of operations

35.  Growth strategies focus on expansion
 Functional strategy: guides activities within one specific
area of operations
 Restructuring and divestiture strategies focus on
consolidation
 Retrenchment strategy: changes operations to correct
weakness
 Liquidation: occurs when business closes and sells its
assets to pay creditors

36.  Restructuring: reduces the scale or mix of
operations
 Chapter 11 bankruptcy: protects an insolvent firm
from creditors during a period of reorganization to
restore profitability
 Downsizing: decreases the size of operations
 Divestiture: involves selling off parts of the
organization to refocus attention on core business
areas

37.  Global strategies focus on international business
incentives
 Global strategy: adopts standardized products and
advertising for use worldwide
 Transnational firm tries to operate globally without
having a strong national identity

38.  Cooperative strategies focus on alliances and
partnerships
 Strategic allegiance: organizations join together in
partnership to pursue an area of mutual interest
 Co-opetition: working with rivals on projects with
mutual benefit

39.  E-business strategies focus on using the internet for
business strategies

40.  B2B Business strategy: uses IT and Web portals to link
organizations vertically in supply chains
 B2C Business strategy: uses IT and Web portals to link
businesses with customers
 Social media strategy: uses social media to better engage with
an organization’s customers, clients and external audiences in
general
 Crowdsourcing: strategic use of internet to engage customers
and potential customers in providing opinions and suggestions
on products and their designs

41. HOW DO MANAGERS FORMULATE AND IMPLEMENT
STRATEGIES?
 The strategic management process formulates and
implements strategies

42.  Strategic management: process of formulating and
implementing strategies
 Strategic formulation: process of creating strategies
 Strategic implementation: process of putting
strategies into action

43.  Strategy formulation begins with organization's mission
and objectives
 Mission: organization's reason for existence in society
 Operating objectives: specific results that organizations
wish to accomplish
 SWOT analysis identifies strengths, weaknesses,
opportunities and threats
 Core competencies: special strength that gives an
organization a competitive advantage

45.  Porter’s Five-process model examines industry
attractiveness

46.  Porter’s competitive strategies model examines business or
product strategies
 Differentiation strategy: offers products that are unique and
different from those of the competition
 Cost leadership strategy: seeks to operate with lower costs
than competitors
 Focused differentiation strategy: offers unique products to a
special market segment
 Focused cost leadership strategy: seeks the lowest cost of
operations within a special market segment

47.  Portfolio planning examines strategies across multiple
businesses or products
 BCG Market – analyzes business opportunities according to
market growth rate and market share
 Strategic leadership ensures strategy
implementation and control
 Strategic leadership: inspires people to implement
organizational strategies
 Strategic control: makes sure that strategies are well
implemented and that poor strategies are scrapped
or changed