MGC1 Principles of Management
Planning Ans: is the conscious, systematic process of making decisions about goals and
activities that an individual, group, work unit, or organization will pursue in the future.
Planning Ans: is a formal expression of managerial intent. It describes what managers decide to
do and how they will do it. It provides the framework, focus, and direction required for a
meaningful effort.
Planning Ans: The management function of systematically making decisions about the goals and
activities that an individual, a group, a work unit, or the overall organization will pursue.
Steps of Strategic Planning Ans: Establishment of Mission, Vision, and Goals
Analysis of External Opportunities and Threats
Analysis of Internal Strengths and Weaknesses
SWOT Analysis and Strategy Formulation
Strategy Implementation
Strategic Controls
Basic Planning Steps Ans: Situational Analysis
Alternative Goals and Plans
Goal and Plan Evaluation
Goal and Plan Selection
Implementation
Monitor and Control
situational analysis Ans: A process planners use, within time and resource constraints, to gather,
interpret, and summarize all information relevant to the planning issue under consideration.
goal Ans: A target or end that management desires to reach.
Goals should be Ans: Specific
Measurable
Attainable (but challenging)
Relevant
Timely or Time-Bound
plans Ans: The actions or means managers intend to use to achieve organizational goals.
contingency plans Ans: Alternative courses of action that can be implemented based on how the
future unfolds.
scenario Ans: A narrative that describes a particular set of future conditions.
,successful implementation Ans: requires a plan to be linked to other systems in the organization,
particularly the budget and reward systems.
strategic planning Ans: A set of procedures for making decisions about the organization's long-
term goals and strategies. Top level management. Love level of details. Time 3-7 years.
strategic goals Ans: Major targets or end results relating to the organization's long-term survival,
value, and growth.
Typical strategic goals include Ans: growth, increasing market share, improving profitability,
boosting return on investment, fostering both quantity and quality of outputs, increasing
productivity, improving customer service, and contributing to society.
strategy Ans: A pattern of actions and resource allocations designed to achieve the
organization's goals.
tactical planning Ans: A set of procedures for translating broad strategic goals and plans into
specific goals and plans that are relevant to a distinct portion of the organization, such as a
functional area like marketing. Middle management. Medium level of detail. Time 1-2 years.
operational planning Ans: The process of identifying the specific procedures and processes
required at lower levels of the organization. Frontline management. High level of detail. Time
less than 1 year.
The Strategy Map illustrates the four key drivers (or "balanced scorecard") of a firm's long-term
success: Ans: the skills of its people and their ability to grow and learn; the effectiveness of its
internal processes;
its ability to deliver value to customers;
its ability to grow its financial assets.
The strategic map Ans: shows the relationship between a firm's practices and its long-term
success.
strategic management Ans: A process that involves managers from all parts of the organization
in the formulation and implementation of strategic goals and strategies.
The strategic management process has six major components: Ans: Establishment of mission,
vision, and goals.
Analysis of external opportunities and threats.
Analysis of internal strengths and weaknesses.
SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation.
Strategy implementation.
Strategic control.
Successful strategic management depends on Ans: an accurate and thorough evaluation of the
competitive environment and macroenvironment.
, mission Ans: An organization's basic purpose and scope of operations.
strategic vision Ans: The long-term direction and strategic intent of a company.
Strategic goals Ans: evolve from the mission and vision of the organization.
The chief executive officer of the organization, with the input and approval of the board of
directors, Ans: establishes the mission, vision, and major strategic goals.
stakeholders Ans: Groups and individuals who affect and are affected by the achievement of the
organization's mission, goals, and strategies.
External Environmental Analysis Ans: Industry and Market Analysis
Competitor Analysis
Political and Regulatory Analysis
Social Analysis
Human Resources Analysis
Macroeconomic Analysis
Technological Analysis
Internal Resource Analysis Ans: Financial Analysis
Marketing Analysis
Operations Analysis
Other Internal Resource Analyses
Human Resources Assessment
resources Ans: Inputs to a system that can enhance performance.
Resources can take many forms, but they tend to fall into two broad categories: Ans: tangible
assets such as real estate, production facilities, raw materials, and so on
intangible assets such as company reputation, culture, technical knowledge, and patents, as well
as accumulated learning and experience
core competence Ans: A unique skill and/or knowledge an organization possesses that give it an
edge over competitors.
a company's core competencies Ans: are when resources are valuable, rare, inimitable, and
organized
benchmarking Ans: The process of comparing an organization's practices and technologies with
those of other companies and to undertake actions to achieve both better performance and lower
costs.
SWOT analysis Ans: A comparison of strengths, weaknesses, opportunities, and threats that
helps executives formulate strategy.
Planning Ans: is the conscious, systematic process of making decisions about goals and
activities that an individual, group, work unit, or organization will pursue in the future.
Planning Ans: is a formal expression of managerial intent. It describes what managers decide to
do and how they will do it. It provides the framework, focus, and direction required for a
meaningful effort.
Planning Ans: The management function of systematically making decisions about the goals and
activities that an individual, a group, a work unit, or the overall organization will pursue.
Steps of Strategic Planning Ans: Establishment of Mission, Vision, and Goals
Analysis of External Opportunities and Threats
Analysis of Internal Strengths and Weaknesses
SWOT Analysis and Strategy Formulation
Strategy Implementation
Strategic Controls
Basic Planning Steps Ans: Situational Analysis
Alternative Goals and Plans
Goal and Plan Evaluation
Goal and Plan Selection
Implementation
Monitor and Control
situational analysis Ans: A process planners use, within time and resource constraints, to gather,
interpret, and summarize all information relevant to the planning issue under consideration.
goal Ans: A target or end that management desires to reach.
Goals should be Ans: Specific
Measurable
Attainable (but challenging)
Relevant
Timely or Time-Bound
plans Ans: The actions or means managers intend to use to achieve organizational goals.
contingency plans Ans: Alternative courses of action that can be implemented based on how the
future unfolds.
scenario Ans: A narrative that describes a particular set of future conditions.
,successful implementation Ans: requires a plan to be linked to other systems in the organization,
particularly the budget and reward systems.
strategic planning Ans: A set of procedures for making decisions about the organization's long-
term goals and strategies. Top level management. Love level of details. Time 3-7 years.
strategic goals Ans: Major targets or end results relating to the organization's long-term survival,
value, and growth.
Typical strategic goals include Ans: growth, increasing market share, improving profitability,
boosting return on investment, fostering both quantity and quality of outputs, increasing
productivity, improving customer service, and contributing to society.
strategy Ans: A pattern of actions and resource allocations designed to achieve the
organization's goals.
tactical planning Ans: A set of procedures for translating broad strategic goals and plans into
specific goals and plans that are relevant to a distinct portion of the organization, such as a
functional area like marketing. Middle management. Medium level of detail. Time 1-2 years.
operational planning Ans: The process of identifying the specific procedures and processes
required at lower levels of the organization. Frontline management. High level of detail. Time
less than 1 year.
The Strategy Map illustrates the four key drivers (or "balanced scorecard") of a firm's long-term
success: Ans: the skills of its people and their ability to grow and learn; the effectiveness of its
internal processes;
its ability to deliver value to customers;
its ability to grow its financial assets.
The strategic map Ans: shows the relationship between a firm's practices and its long-term
success.
strategic management Ans: A process that involves managers from all parts of the organization
in the formulation and implementation of strategic goals and strategies.
The strategic management process has six major components: Ans: Establishment of mission,
vision, and goals.
Analysis of external opportunities and threats.
Analysis of internal strengths and weaknesses.
SWOT (strengths, weaknesses, opportunities, and threats) analysis and strategy formulation.
Strategy implementation.
Strategic control.
Successful strategic management depends on Ans: an accurate and thorough evaluation of the
competitive environment and macroenvironment.
, mission Ans: An organization's basic purpose and scope of operations.
strategic vision Ans: The long-term direction and strategic intent of a company.
Strategic goals Ans: evolve from the mission and vision of the organization.
The chief executive officer of the organization, with the input and approval of the board of
directors, Ans: establishes the mission, vision, and major strategic goals.
stakeholders Ans: Groups and individuals who affect and are affected by the achievement of the
organization's mission, goals, and strategies.
External Environmental Analysis Ans: Industry and Market Analysis
Competitor Analysis
Political and Regulatory Analysis
Social Analysis
Human Resources Analysis
Macroeconomic Analysis
Technological Analysis
Internal Resource Analysis Ans: Financial Analysis
Marketing Analysis
Operations Analysis
Other Internal Resource Analyses
Human Resources Assessment
resources Ans: Inputs to a system that can enhance performance.
Resources can take many forms, but they tend to fall into two broad categories: Ans: tangible
assets such as real estate, production facilities, raw materials, and so on
intangible assets such as company reputation, culture, technical knowledge, and patents, as well
as accumulated learning and experience
core competence Ans: A unique skill and/or knowledge an organization possesses that give it an
edge over competitors.
a company's core competencies Ans: are when resources are valuable, rare, inimitable, and
organized
benchmarking Ans: The process of comparing an organization's practices and technologies with
those of other companies and to undertake actions to achieve both better performance and lower
costs.
SWOT analysis Ans: A comparison of strengths, weaknesses, opportunities, and threats that
helps executives formulate strategy.
