coping with uncertainty by formulating future courses of action to achieve specified goals

state uncertainty 

a managers attempt to predict the effects of specific environmental changes or events on his/her organization

rely on a primary technology and/or a narrow product line to remain competitive

Kleenex

seek first mover advantage by agressively making things happen and not waiting for them to happen

(Facebook)

follow the market leader and imitate what works, avoiding expensive research and development mistakes

Netflix, Sprouts

make adjustments only when forced, wait for adversity to occur before taking corrective action

(Kodak)

Two key components of a plan are

Objectives are both targets and

The boxes on a flow chart contain

If a candle factory has fixed costs of $40,000, a unit selling price of $10, and a variable cost per unit of $6, it's break even point is

1. Defines the organization to key holders

2. Creates an inspiring vision of what the company can do

3. Outlines how the vision is to be accomplished

4. Establishes key priorities

5. States a common goal and fosters a sense of togetherness

6. Creates philosophical anchor for all organ. activities

7. Generates enthusiasm and a can-do attitude

8. Empowers present and future organ. members to believe that every indiv. is the key to success

determining how to pursue long term goals with available resources (equal or less than 5 yrs)

specifies HOW the organ. will achieve competitive advantage

determining how to accomplish specific tasks on time with available resources (equal to or less than a yr)

1. what specific result is to be achieved?

2. when is the result to be achieved?

3. how is the result to be achieved?

4. who will be responsbile for achieving the result?

1. Targets-set specific goals to be achieved
2. measuring sticks- gauges how much was achieved
3. fostering commitment- encourages pursuit of the objective
4. enhancing motiviation- provides a challenge for achievement

• learning to say no
• set priorities
• focus on results not activites that take up your time

A. "Must do" objectives are ctitical to successful performance

B. "Should do" objectives are necessary for improved performance 

C. "Nice to do" objectives are desirable for improved performances but not critical to improved performance

1. conceptualization- setting project goals and objectives
2. planning- organizing facilities and equipment, personnel, tasks, and scheduling
3. execution- beginning actual work
4. termination- turning project over to the end user and phasing our project resources

1. formulate plans
2. carry out plans
3. compare preliminary and final results with plans
4. take corrective action

1. set objectives-planning phase
2. develop action plans- planning phase
3. periodic review- control phase
4. performance appraisal- control phase

1. MBO blends planning and control inot a rational system of mgmt
2. MBO forces an organization to develp a top to bottom hierarchy of objectives
3. MBO emphasizes end results rather than good intentions
4. MBO encourages self mgmt and committment through employee participation in setting objectives

1. MBO is too often sold as a cure-all
2. MBO easily stalled by authoritarian (theory x) mgrs and inflexible policies
3. MBO takes too much time and effort and generates too much paperwork
4. MBO emphasis on objectives can be used as a threat by mgrs

1. entreprenuer
2. politician
3. friend
4. marketer
5. coach
6. implementer

1. arrange events in the order of their actual or desired occurrence
2. eliminate wasted steps
3. identify task components and in TQM

1. they do not indicate the time dimension of tasks
2. they are bnot practical for complex operations where several activites occur at once

1. pert event-milestone representing the start or finish of an activity
2. pert activity- work in progress
3. pert times- estimated times for completion
4. critical path-

1. excellent scheduling tool
2. requires envisioning projects in their entirety
3. tool for predicting resource needs, problems, and delays

1. inappropriate for repetitive assembly line operations
2. only as good as underlying assumptions about completion time
3. too time consuming if not computerized

contractual costs that must be paid regardless of level of output or sales

rent, utilities, insurance, salaries, taxes, licenses

costs that vary directly with the firms production and sales

labor, materials, supplies