Grab a textbook
Daily Information 2/10
1
Objectives:
Warm Up:
1. Recognize the
importance of
planning to
business
success.
2. Differentiate
between
strategic and
operational
planning.
1. Warm Up
“You never know 2. The planning
when you have
function P.P.
arrived if you
3. Video: Flight 001
don’t know where 4. TPS
5. Class review
you are going.”
6. Partner Review
Questions
Explain this in
your own words.
Agenda:
Why Plan?
2

Managers that can effectively plan for a
business’s future are more likely to be successful
than those who concentrate only on day-to-day
operations

Poor planning can result in losses and business
failure
What is Planning?
Planning is choosing a goal and developing a
method or strategy to achieve that goal.
Involves:
 Analyzing the opportunities and risks
 Most important management activity
 Guides business decisions
 Can be like a jigsaw puzzle (must fit together)
How To Make a Plan That Works
Setting S.M.A.R.T. Goals





Specific
Measurable
Attainable
Realistic
Timely
Flight 001 Video


Click picture to play video

What plans need to be in place
before they can meet their
expansion goals?
In what ways might the
introduction of the Flight 001
brand of products help the
business?
How did the change in the
economy affect Flight 001’s plans
for the year?
Developing Effective Action Plans
An action plan lists…




Specific steps (how)
People (who)
Resources (what)
Time period (when)
…for accomplishing a goal
Tracking Progress

Proximal goals
–
–

Distal goals
–

Short-term or subgoals
Enable you to achieve distal goals 1 piece at a time
Long-term or primary goals
Performance feedback
–
Regular feedback allows you to track progress
toward goals
Maintaining Flexibility

Options-based planning
–

keep options open by making, small investments
in several alternative plans.
Slack resources
–
a cushion of resources, like extra time or money,
that can be used to address and adapt to
unanticipated changes.
Planning from Top to Bottom
Works best when goals and action plans at the bottom
and middle of the organization support the goals and
action plans at the top of the organization.
• Everyone needs to be on the same page!!!
Levels of Planning

Strategic planning: long-term planning that
provides goals and direction (Top-Management)
–

Operational planning: short-term planning that
identifies specific activities for each business area
(Lower-Level Management)
–
–
–
11
SWOT analysis
How the work will be done
Who will do it
What resources will be needed to accomplish goals
Strategic Planning
12
Figure 13-1: Page 325 of Textbook
In your groups, review the figure step-by-step
What does each step contribute to effective
planning? What might happen to the
company’s plans if that step was ignored?
–
13
Write down your answers
SWOT Analysis

Internal
–

External
–
14
Strengths and Weaknesses within the company
Opportunities and Threats from its external
environment.
Factors To Consider






15
Economic conditions facing the business
Past sales and profits
Demand for products/services
Reactions of current/prospective customers
Business resources
Actions of competitors
Planning Tools
Budget: specific financial plan
Schedule: time plan for reaching objectives
Standard: measure against which something is judged
Policies: guideline for making decisions in recurring
situations
Procedures: steps followed for performing certain work or in
response to a particular event
Vision: statement of a company's purpose or reason for
existing
16
Strategic or Operational Planning?

17
A new warehouse will be built to serve the
markets in the northeast section of the
country
Strategic or Operational Planning?

A new warehouse will be built to serve the
markets in the northeast section of the
country
Strategic
18
Strategic or Operational Planning?

19
The advertising budget for the next three
months will be increase by 2 percent at
attract more customers into the store
Strategic or Operational Planning?

The advertising budget for the next three
months will be increase by 2 percent at
attract more customers into the store
Operational
20
Strategic or Operational Planning?

21
The Cleveland facility will schedule a oneweek shutdown in December to allow for
equipment repairs
Strategic or Operational Planning?

The Cleveland facility will schedule a oneweek shutdown in December to allow for
equipment repairs
Operational
22
Strategic or Operational Planning?

23
An export office in Rome will be used to
develop plans for European market
development
Strategic or Operational Planning?

An export office in Rome will be used to
develop plans for European market
development
Strategic
24
Strategic or Operational Planning?

25
A small business owner has decided to
expand into other states by selling franchises
Strategic or Operational Planning?

A small business owner has decided to
expand into other states by selling franchises
Strategic
26
Activity

CheckPoint
–
–
–


27
Page 324
Page 327
Page 332
13.1 Assessment (Q’s: 1-4)
13.2 Assessment (Q’s: 1-2)
Daily Information 2/11
Objectives:
1. Describe factors
that managers
should consider
when organizing
work.
2. Describe the
advantages and
disadvantages of
organizational
28
structures.
Warm Up:
Grab a textbook
Agenda:
1. Warm Up
2. Organizing P.P.
Do you believe
3. Review
you are
Questions
organized? If so,
(partners)
describe what you 4. Individual
do to keep
activity
organized.
Organizing Work
Arranging resources, relationships between
departments and employees
 Define responsibility for everyone involved to
complete the task
–
29
Example: New Product
 Departments affected: research, manufacturing,
human resources, marketing and sales, finance,
information technology
 Once each department knows what they have to do,
work is assigned to the people within each
department
Organization Charts
A drawing that shows the structure of an
organization, job classifications, relationships
between personnel.
 Identify lines of authority
 Shows accountability
 Show major work areas of a business
30
Organization Chart
General Manager
VP Purchasing
VP Merchandising
VP Finance
Advertising and
Promotion Manager
Customer Service
Manager
Sales Manager
Delivery
31
Service and Repairs
Characteristics of Good Organization





32
Responsibility: obligation to do an assigned task
Authority: right to make decisions about assigned work
and make assignments to others
Accountability: obligation to accept responsibility for
outcomes of assigned tasks
Unity of command: principle that no employee reports
to more than one supervisor at a time or for a particular
task
Span of control: number of employees any one
manager supervises directly
Departmentalization
The method of dividing work and workers into
separate units that complete particular tasks:





Functional
Product
Customer
Geographic
Matrix
Functional Departmentalization
Organizes work by business functions or expertise
 Advantages
–
–
–

work is completed by highly qualified specialists
lowers costs by reducing duplication
makes communication and coordination easier
Disadvantages
–
–
cross-department coordination can be difficult
slower decision making
Functional Departmentalization
Product Departmentalization
Organizes work by products or services
 Advantages
–
–
–

allows you to specialize in one area of expertise
easier to assess performance
faster decision making
Disadvantages
–
–
duplication
coordination across different product departments
Product Departmentalization
© 2011 Cengage
Learning
Customer Departmentalization
Organizes work by particular kinds of customers
 Advantages
–
–

focuses on customer needs
allows companies to specialize products and services
to customer needs
Disadvantages
–
–
duplication of resources (primary disadvantage)
workers might please customers but hurt business
Customer Departmentalization
© 2011 Cengage
Learning
Geographic Departmentalization
Organizes work by geographic area
 Advantages
–
–

helps companies respond to different markets
reduces costs by locating unique resources closer to
customers
Disadvantages
–
–
duplication of resources
difficult to coordinate departments
Geographic Departmentalization:
Coca-Cola Enterprises
Matrix Departmentalization
A hybrid structure in which two or more forms of
departmentalization are used together:
 Advantages
–
–

allows companies to manage large, complex tasks
gives more diverse set of expertise and experience
Disadvantages
–
–
–
–
requires a high level of duplication
violates the principle of unity of command
confusion and conflict between project bosses
requires much more management skill
Matrix Departmentalization: Procter & Gamble
Chain of Command

Chain of command
–

the vertical line of authority that clarifies who
reports to whom throughout the organization
Unity of command
–
workers should report to just one boss
Delegation: Responsibility, Authority, Accountability
Delegation of authority: when a manager gives direct
authority and responsibility to an employee to complete
tasks that a manager is normally responsible.
Review Questions: Partners



Checkpoint: page 340
Assessment 13.3: Questions 1-4
Review Terms and Concepts (page 348)
–

Determine the Best Answer (page 349)
–

Questions: 14, 16, 17
Apply What You Know (page 349 and 350)
–
46
Questions: 3, 4, 5, 6, 8, 9, 10, 11, 12
Questions: 19, 20, 22, 23, 24
Group Organizational Chart

Now that you have your employee work
schedule and a good idea as to where you
are headed with your business, create an
organizational chart for your business.
*****If you have not already done so*****
47