MGST 391 Chapter Notes - Chapter 3: Payback Period, Strategic Management, Controllability
Document Summary
Planning involves making choices between alternatives and is primarily a decision making activity . Top-down approach means strategic management starts from top management and flows down the structure. Bottom-up approach means information is accumulated at lower level and presented to top management along with summary and options available. Identify available strategies: evaluate each strategy, choose strategy (course of action) Implement long-term plan in the form of annual budgets. Finance (strict rules of financing i. e. out of profits) Rule of thumb (best estimate of value within worst to best possible range) Probability theory (likelihood of occurrence of a forecast result) Standard deviation (calculate standard deviation of expected value, the higher it is the higher risk is) Control is comparing actual results with planned performance and taking appropriate actions . The process of reporting back control information to management and the control information itself . It may be single loop or double loop.