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1、Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,2007 Prentice Hall,Inc.All rights reserved.,7,*,B,2007 Prentice Hall,Inc.All rights reserved.,Foundations of Planning,Chapter,7,2007 Prentice Hall,Inc.All rights reserved.,7,2,L E A R
2、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 informal planning.,Describe the purposes of planning.,Discuss the conclusions from studies of the relationship between planning and performance.,
3、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 real goals.,Describe each of the different types of plans.,2007 Prentice Hall,Inc.All rights reserved.,7,3,L E A R N I N G O U T L I N E (
4、contd),Follow this Learning Outline as you read and study this chapter.,Establishing Goals and Developing Plans,Discuss how traditional goal setting works.,Explain the concept of the means,end chain.,Describe the management by objective(MBO)approach.,Describe the characteristics of well-designed goa
5、ls.,Explain the steps in setting goals.,Discuss the contingency factors that affect planning.,Describe the approaches to planning.,2007 Prentice Hall,Inc.All rights reserved.,7,4,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 Issue
6、s in Planning,Explain the criticisms of planning and whether theyre valid.,Describe how managers can effectively plan in todays dynamic environment.,2007 Prentice Hall,Inc.All rights reserved.,7,5,What Is Planning?,Planning,A primary managerial activity that involves:,Defining the organizations goal
7、s,Establishing an overall strategy for achieving those goals,Developing plans for organizational work activities.,Types of planning,Informal:,not written down,short-term focus;specific to an organizational unit.,Formal:,written,specific,and long-term focus,involves shared goals for the organization.
8、,2007 Prentice Hall,Inc.All rights reserved.,7,6,Why Do Managers Plan?,Purposes of Planning,Provides direction,Reduces uncertainty,Minimizes waste and redundancy,Sets the standards for controlling,2007 Prentice Hall,Inc.All rights reserved.,7,7,Planning and Performance,The Relationship Between Plann
9、ing And Performance,Formal planning is associated with:,Higher profits and returns on assets.,Positive financial results.,The quality of planning and implementation affects performance more than the extent of planning.,The external environment can reduce the impact of planning on performance,Formal
10、planning must be used for several years before planning begins to affect performance.,2007 Prentice Hall,Inc.All rights reserved.,7,8,How Do Managers Plan?,Elements of Planning,Goals(also Objectives),Desired outcomes for individuals,groups,or entire organizations,Provide direction and evaluation per
11、formance criteria,Plans,Documents that outline how goals are to be accomplished,Describe how resources are to be allocated and establish activity schedules,2007 Prentice Hall,Inc.All rights reserved.,7,9,Types of Goals,Financial Goals,Are related to the expected internal financial performance of the
12、 organization.,Strategic Goals,Are related to the performance of the firm relative to factors in its external environment(e.g.,competitors).,Stated Goals versus Real Goals,Broadly-worded official statements of the organization(intended for public consumption)that may be irrelevant to its real goals(
13、what actually goes on in the organization).,2007 Prentice Hall,Inc.All rights reserved.,7,10,Exhibit 71Stated Goals of Large Global Companies,Execute strategic roadmap“Plan to Win.”,Grow the business profitably.,Identify and develop diverse talent.,Promote balanced,active lifestyles.,(McDonalds Corp
14、oration),Continue to win market share globally.,Focus on higher-value products.,Reduce production costs.,Lower purchasing costs.,Integrate diversity.,Gain ISO 14001 certification for all factories.,(LOreal),Respect the environment.,Respect and support family unity and national traditions.,Promote co
15、mmunity welfare.,Continue implementing quality systems.,Continue to be a strong cash generator.,(Grupo Bimbo),Control inventory.,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 competitivel
16、y priced products.,Manage inventory carefully.,Continue to improve store format every few years.,Operate 2,000 stores by the end 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,Ann