BOH 4M: Planning Study Guide Exam.

BOH 4M: Planning Study Guide Exam. Planning - CORRECT ANSWER the process of setting objectives and determining how to accomplish them Objectives - CORRECT ANSWER identify the specific results or desired outcomes that one intends to achieve Plan - CORRECT ANSWER A statement of action steps to be taken in order to accomplish the objectives Importance of planning - CORRECT ANSWER creates a solid plat form for other management functions Benefits of planning - CORRECT ANSWER -focus and flexibility -action orientated -increased coordination -control -time management short-range plans - CORRECT ANSWER 1 year or less intermediate-range plans - CORRECT ANSWER 1-2 years long-range plans - CORRECT ANSWER 3 years or more (higher management focuses on longer time frames) forecasting - CORRECT ANSWER Making assumptions about what will happen in the future contingency planning - CORRECT ANSWER identifying alternative courses of action that can be implemented to meet the needs of changing circumstances scenario planning - CORRECT ANSWER A long-term version of contingency planning Identifying alternative future scenarios -Plans made for each future scenario -Increases organization's flexibility and preparation for future shocks Benchmarking - CORRECT ANSWER use of external comparisons to better evaluate current performance and identify possible actions for the future Strategy - CORRECT ANSWER a comprehensive plan guiding resource allocation to achieve long-term organizational goals Mission Statement - CORRECT ANSWER organizations reason for existence in society Vision statement - CORRECT ANSWER describes a route a company intends to take in developing and strengthening its business corporate strategy - CORRECT ANSWER long term for the entire enterprise business strategy - CORRECT ANSWER how a division/unit will compete functional strategy - CORRECT ANSWER guides activities within one specific area of operations PEST analysis - CORRECT ANSWER helps businesses work more efficiently by looking at external factors political factors - CORRECT ANSWER political stability, trade, regulations, taxation, labour laws, and safety regulations - vary widely from country to country economic factors - CORRECT ANSWER economic growth, stagnation, recession, interest rates, exchange rates, and inflation