Ch. 4 Notes

Situational Analysis - A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.

Goal - A target or end that management desires to reach.

Plans - The actions or means managers intend to use to achieve organizational goals.

Scenario - A narrative that describes a particular set of future conditions.

Tying plans to a firm’s financials is a key element of success. Bottom line is cost.

Strategic planning - A set of procedures for making decisions about the organization’s long-term goals and strategies.

Strategic goals - Major targets or end results relating to the organization’s long-term survival, value, and growth.

Strategy - A pattern of actions and resource allocations designed to achieve the organization’s goals. Tactical planning - A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as a functional area like marketing.

Operational planning - The process of identifying the specific procedures and processes required at lower levels of the organization.

Innovation - New ideas from managers throughout the organization can contribute to a plan’s effectiveness. Strategic management - A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.

Mission - An organization’s basic purpose and scope of operations.

Strategic vision - The long-term direction and strategic intent of a company.

Stakeholders - Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.

Resources - Inputs to a system that can enhance performance.

Core competence - A unique