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1、 2007 Prentice Hall, Inc. All rights reserved.,Foundations of Planning,Chapter 7, 2007 Prentice Hall, Inc. All rights reserved.,72,L E A R N I N G O U T L I N E Follow this Learning Outline as you read and study this chapter.,What Is Planning? Define planning. Differentiate between formal and inform
2、al planning. Describe the purposes of planning. Discuss the conclusions from studies of the relationship between planning and performance. How Do Managers Plan? Define goals and plans. Describe the types of goals organizations might have. Explain why its important to know an organizations stated and
3、 real goals. Describe each of the different types of plans., 2007 Prentice Hall, Inc. All rights reserved.,73,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Establishing Goals and Developing Plans Discuss how traditional goal setting works. Exp
4、lain the concept of the meansend chain. Describe the management by objective (MBO) approach. Describe the characteristics of well-designed goals. Explain the steps in setting goals. Discuss the contingency factors that affect planning. Describe the approaches to planning., 2007 Prentice Hall, Inc. A
5、ll rights reserved.,74,L E A R N I N G O U T L I N E (contd) Follow this Learning Outline as you read and study this chapter.,Contemporary Issues in Planning Explain the criticisms of planning and whether theyre valid. Describe how managers can effectively plan in todays dynamic environment., 2007 P
6、rentice Hall, Inc. All rights reserved.,75,What Is Planning?,Planning A primary managerial activity that involves: Defining the organizations goals Establishing an overall strategy for achieving those goals Developing plans for organizational work activities. Types of planning Informal: not written
7、down, short-term focus; specific to an organizational unit. Formal: written, specific, and long-term focus, involves shared goals for the organization., 2007 Prentice Hall, Inc. All rights reserved.,76,Why Do Managers Plan?,Purposes of Planning Provides direction Reduces uncertainty Minimizes waste
8、and redundancy Sets the standards for controlling, 2007 Prentice Hall, Inc. All rights reserved.,77,Planning and Performance,The Relationship Between Planning And Performance Formal planning is associated with: Higher profits and returns on assets. Positive financial results. The quality of planning
9、 and implementation affects performance more than the extent of planning. The external environment can reduce the impact of planning on performance, Formal planning must be used for several years before planning begins to affect performance., 2007 Prentice Hall, Inc. All rights reserved.,78,How Do M
10、anagers Plan?,Elements of Planning Goals (also Objectives) Desired outcomes for individuals, groups, or entire organizations Provide direction and evaluation performance criteria Plans Documents that outline how goals are to be accomplished Describe how resources are to be allocated and establish ac
11、tivity schedules, 2007 Prentice Hall, Inc. All rights reserved.,79,Types of Goals,Financial Goals Are related to the expected internal financial performance of the organization. Strategic Goals Are related to the performance of the firm relative to factors in its external environment (e.g., competit
12、ors). Stated Goals versus Real Goals Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization)., 2007 Prentice Hall, Inc. All rights reserved.,710,Exhibit 71 Stated Goals of Large Glob
13、al Companies,Execute strategic roadmap“Plan to Win.” Grow the business profitably. Identify and develop diverse talent. Promote balanced, active lifestyles. (McDonalds Corporation),Continue to win market share globally. Focus on higher-value products. Reduce production costs. Lower purchasing costs.
14、 Integrate diversity. Gain ISO 14001 certification for all factories. (LOreal),Respect the environment. Respect and support family unity and national traditions. Promote community welfare. Continue implementing quality systems. Continue to be a strong cash generator. (Grupo Bimbo),Control inventory.
15、 Maintain industrys lowest inventory shrinkage rate. Open 2530 new locations in fiscal 2006. Live by the code of ethics every day. (Costco),Expand selection of competitively priced products. Manage inventory carefully. Continue to improve store format every few years. Operate 2,000 stores by the end
16、 of the decade. Continue gaining market share. (Target),Roll out newly-designed environmentally friendly cup in 2006. Open approximately 1,800 new stores globally in 2006. Attain net revenue growth of approximately 20 percent in 2006. Attain annual EPS growth of between 20 percent to 25 percent for the next 3 to 5 years. (Starbucks),Source: Information from companys Annual Reports, 20042005., 2007 Prentice Hall, Inc. All rights reserved.,711,Exhibit 72 Typ
