GMS 200 Study Guide - Final Guide: Small Business, Organizational Culture, Situational Leadership Theory
9 May 2018
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Chapter 6
1.Planning is the process of setting objectives and determining how to best accomplish them.
2.Planning sets the stage for organizing, leading, and controlling by providing direction.
The Planning Process
5 steps in the systematic planning process are as follows:
1.Define your objectives- identify desired outcomes or results in very specific ways, know where you
want to go; be specific enough that you will know you have arrived when you get there, or know how far
off the mark you are at various points along the way
2.Determine where you stand vis-à-vis objectives- Evaluates current accomplishments relative to the
desired results. Know where you stand in reaching the objectives; know what strengths work in your favor
and what weaknesses may hold you back
3.Develop premises regarding future conditions- Anticipate future events. Generate alternative scenarios
for what may happen; Identifiy for each scenario things that may help or hinder progress toward your
objectives.
4.Anaylze alternatives and make a plan- List and evaluate the possible actions. Choose the alternative
most likely to accomplish your objectives; decide what must be done to follow the chosen course of
action.
5.Implement the plan and evaluate results- Take action and carefully measure your progress toward
objectives. Follow through by doing what the plan requires; evaluate results, take corrective action, and
revise plans as needed.
What types of plans do managers use?
Long-range and short-range plans
Exercise: Plan your career.
First, think about your long range goals
Short range < 1 year
Medium range 1-2 years
Long range 3+ years
Strategic plans
• Broad, comprehensive
• Longer-term- expresses what the organization hopes to be in the future
Tactical Plans-define what needs to be done in specific areas to implement strategic plans
Operational plan- describe what needs to be done in the short term and in response to different
situations
1.policies- broad guidelines for decisions and action
2.procedure or rule- actions in specific situations
3.budgets- commits resources to projects
What are the useful planning tools and techniques?
Forecasting-is the process of making assumptions about what will happen in the future
Contingency planning
• Alternative courses of action
• Meet the needs of changing circumstances
• Anticipate that things can go wrong
-Changes in the environment will eventually occur
-Crises and emergencies may occur
Benchmarking
• External and internal comparisons
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• Best practices lead to superior performance
Staff planners
• Coordinate the planning function the organization or a component
How can plans be well implemented?
SMART goals:
Specific- clearly target key results and outcomes to be accomplished
Measureable- described so results can be measured without ambiguity
Attainable- challenging, including a stretch factor that moves toward real gains, yet, realistic and possible
to achieve
Referred to- goals need to be referred to regularly to keep people focused on the task at hand
Timely- linked to specific timetables and due dates
Management by objectives (MBO):
• Structured process
• Regular communication
• Jointly set performance objectives
• Review results accomplished
• Formal agreement between boss and team:
- performance objectives
- given time period
- plans to accomplish goals
- measurement standards
- reviewing performance results
MBO Pros and Cons
Advantages of MBO:
• focuses workers on the most important tasks and objectives
• focuses supervisors on areas of support
• agreed-upon objectives
• contributes to relationship building between supervisor and subordinate
• gives the subordinates a structured opportunity to participate in decisions that affect their work
Actions to avoid in using MBO:
• tying MBO to pay
• focus on easy objectives
• excessive paperwork
• supervisors tell subordinates their objectives
Chapter 5
Entrepreneurship- is risk-taking behavior that results in the creation of new opportunities for individuals
and/or organizations
Small business- is commonly defined as one with 100 or fewer employees, that is independently owned
and operated, and that does not dominate its industry (almost 98% of Canadian business are classified as
small)
8 Characteristics of an Entrepreneur
1. internal locus of control
2. high energy level
3. high need for achievement
4. tolerance for ambiguity
5. self-confidence
6. passion and action orientation
7. self-reliance and desire for independence
8. flexibility
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Background, experiences, interests
Questions to ask yourself
➢ Does your family value and foster independence or do they tend to anticipate your needs and
take care of you?
➢ Do you like to try different things or do you tend to find something you like and stay with it?
➢ Have you started your own business ever or do you have a habit of initiating your own activities,
without being told to do so?
➢ Are you creative or interested in creative pursuits?
➢ Do you like to have control over what you do or not?
➢ Are you achievement oriented or are you happy completing the goals set out for you, as
required?
Typical Life Characteristics of Entrepreneurs:
Childhood experiences and family environment
• Parents who were entrepreneurs or self-employed
• Families that encourage responsibility, initiative, and independence
Career or work history
• Try more than one business venture
• Prior career or personal experience in the business area or industry
Windows of career opportunity
• Start businesses between the ages of 22 and 45; bus age is no barrier
Deeply embedded life interests
• Strong interests in creative production and enterprise control
• Seek independence and the sense of mastery that comes with success
CHAPTER 7
Strategy- is a comprehensive action plan that identifies long-term direction for an organization and guides
resource utilization to accomplish goals with sustainable competitive advantage
Strategic management- is the process of formulating and implementing strategies to accomplish long-
term goals and sustainable competitive advantage
Strategy formulation
• Create strategy
• Asses existing strategies, organization, and environment
• Develop new strategies
• Deliver future competitive advantage
Strategy implementation- is the process of allocating resources and putting strategies into action
Competitive advantage- refers to operating with an attribute or set of attributes that allows an
organization to outperform its rivals
Typical sources of competitive advantage include:
• Cost and quality
• Knowledge and speed
• Barriers to entry
• Financial resources
A sustainable competitive advantage- difficult for competitors to imitate
Strategic Management Process
Strategic Analysis > Strategy Formulation > Strategy Implementation
Assessing competitive position creating strategies putting strategies into action
Formulation: Mission and Values
Mission-reason for the existence
Stakeholders- the individuals and groups who are directly affected by the organization and its strategic
accomplishments
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GMS 200 Full Course Notes
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Document Summary
1. planning is the process of setting objectives and determining how to best accomplish them. 2. planning sets the stage for organizing, leading, and controlling by providing direction. 5 steps in the systematic planning process are as follows: 2. determine where you stand vis- -vis objectives- evaluates current accomplishments relative to the desired results. Know where you stand in reaching the objectives; know what strengths work in your favor and what weaknesses may hold you back. 3. develop premises regarding future conditions- anticipate future events. Generate alternative scenarios for what may happen; identifiy for each scenario things that may help or hinder progress toward your objectives. 4. anaylze alternatives and make a plan- list and evaluate the possible actions. Choose the alternative most likely to accomplish your objectives; decide what must be done to follow the chosen course of action. 5. implement the plan and evaluate results- take action and carefully measure your progress toward objectives.
