Term
|
Definition
| process of deciding on programs that the organization will undertake and and on the approximate amount of resources that will be allocated to each program over the next several years |
|
|
Term
| strategy formulation vs. strategic planning |
|
Definition
| process of deciding on new strategies whereas the strategic planning is the process of how to implement the straetgies |
|
|
Term
|
Definition
management arrives at the goals of an org and creates the main strategies for achieving these goals
- not systematic |
|
|
Term
| overlap between SP and SF |
|
Definition
-studies during the strategic planning process may indicate the desireability of changing goals and strategies
-strategy formulation usually includes a preliminary means of achiving goals |
|
|
Term
| benefits of strategic planning |
|
Definition
framework for developing the annual budget
-management development tool
-mechanism to force managers to look long term
-means of aligning managers with the long term strategies of company |
|
|
Term
| limitations of strategic planning |
|
Definition
-danger that planning can end up becoming a form filling bureaucratic exercise, devoid of strategic thinking
-organization may create a large strategic planning department and delegate the prep of the strategic plan to that staff department
-time consuming and expensive |
|
|
Term
| form strategic plan is desirable in which situations |
|
Definition
-top management is convinced that strategic planning is important
-organization is relatively large and complex
-considerable uncertainty about the future exists |
|
|
Term
| SP for industrial organizations |
|
Definition
| programs are product families, plus R&D, general and admin, planned acquisitions, or other |
|
|
Term
|
Definition
| programs tend to correspond to the types of services rendered by the company |
|
|
Term
| how long should a SP cover and why? |
|
Definition
five years
-consequnces of a major decision might not be felt within a short time period
-beyond five years are too murky so it is not worthwhile |
|
|
Term
| organization relationships of strategic planning |
|
Definition
involves senior management and managers and are assisted by staff
-primary purpose is to faciliate communication
-staff should only be catlyst -> should not be that actively involved |
|
|
Term
|
Definition
| designers of system must correctly diagnose the style of senior management and see to it that the system is appropriate for that style |
|
|
Term
| 2 categories of new programs |
|
Definition
reactive - in response to a perceived threat of org
-proactive - capitalize on an opportunity |
|
|
Term
| techniques for analyzing investment proposals |
|
Definition
- NPV
-IRR
should only be used half the amount of time that they are |
|
|
Term
| reasons for not using present value techniques in analyzing proposals |
|
Definition
1. may be so obviously attractive
2. estaimtes involved in proposal are so uncertain
3. there may be another goal besides profitability
4. there may be no feasible alternative |
|
|
Term
|
Definition
-rules should be published and have appropriate parties analyzing and making decisions
-guidelines for preparing proposals, minimum required earnings, |
|
|
Term
|
Definition
| -project analyst must be able to detect manipulations by program presenters to know if they have manipulated the data |
|
|
Term
| other models and techniques for analyzing new proposals |
|
Definition
| risk analysis, sensitivity analysis, simulation, scenario planning, game theory, option pricig, contingent claims, decision tree |
|
|
Term
|
Definition
computer systems that enable and help CEO and other senior management to analyze investment decisions and see the potential consquences of their actions
also can tabulate votes on investment |
|
|
Term
|
Definition
| linked set of value creating activities of which it is a part, from acquiring raw materials to ultimate end use product and delivering it to its final customers |
|
|
Term
| three potentially useful areas for value chain |
|
Definition
-linkages with customers
-linkages with suppliers
process linkages within the firm |
|
|
Term
| process linkages within the firm |
|
Definition
-seek to improve efficiency and hurry process of moving goods through improving 3 efficiencies
-inward effiency
production efficency
-outward efficiency |
|
|
Term
|
Definition
shows complex products with multiple parts are more expensive than simple products
-shows the cause and root of the cost incurrence
-reducing costs by reducting complicatoins |
|
|
Term
| strategic planning process |
|
Definition
1. review and updating strategic plan
2. deciding on assumption and guidelines
3. first iteration of the Sp
4 .analysis
5. second iteration of strategic plan
6. final review and approval |
|
|
