MGT 3200 Lecture Notes - Lecture 3: Gie, Cost Leadership, Crystal Ball
Document Summary
Organizations that emphasize planning tend to have higher sales/profits: not guaranteed. Provides direction and gives a sense of coordination. Planning is not rewarded by the organization. Pla(cid:374)(cid:374)i(cid:374)g (cid:272)a(cid:374) (cid:271)e used to (cid:373)easure the (cid:373)a(cid:374)ager"s perfor(cid:373)a(cid:374)(cid:272)e. The manager may have a fear of failure related to planning. Even when people have the best of intentions to plan, sometimes planning can get neglected. People focus on the day to day problems before planning, but then they never get to planning. In this phase the manager is developing beliefs about what will happe(cid:374) i(cid:374) the orga(cid:374)izatio(cid:374)"s e(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t: synonymous with forecasting, different forecasts will lead to different plans being developed for accomplishing the same goal. 2: contingency planning: it involves developing multiple future scenarios and plans to accompany each one. It allows businesses to be proactive and anticipate changes. Problems: time consuming and expensive: options-based planning: make small investments in all the contingency plans to see which one works the best.
