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Chapter 6

Chapter 6


Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird
Chapter
6

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Chapter 6
Goals objectives that a business hopes to plans to achieve
Strategy the broad program that underlies those decisions
Purpose of goal setting
1.Goal setting provides direction, guidance, and motivation for all managers
2.Goal settings helps firms allocate resources
3.Goals setting helps to define corporate culture
4.Goal setting helps managers assess performance
Mission statement an organizations statement of how it will achieve its purpose in the
environment in which it conducts its business
Long-term goals goals set for extended periods of time, typically five years or more into
the future
Intermediate goals goals set for a period of one to five years
Short-term goals goals set for the very near future, typically less than one year
Strategy formulation creation of a broad program for defining and meeting an
organizations goals
Strategic goals long term goals denied directly from a firms mission statement
SWOT analysis identification and analysis of organization strengths and weaknesses
and environmental opportunities and threats as part of strategy formulation
Environmental analysis the process of scanning the environment for threats and
opportunities
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Organizational analysis the process of analyzing a firms strengths and weaknesses
Strategic plans plans that reflect decisions about resource allocations, company
priorities, and steps needed to meet strategic goals
Tactical plans generally, short range plans concerned with implementing specific
aspects of a company’s strategic plans
Operational plans plans setting short term targets for daily, weekly, or monthly
performance
Corporate level strategy identifies the various businesses that a company ill be in, and
how these businesses will relate to each other
Business level (competitive) identifies the ways a business will compete in its chosen
line of products or services
Functional strategies identify the basic courses of action that each department in the
firm will pursue so that it contributes to the attainment of the businesss over all goals
Concentration strategy involves focussing the company on one product or product line
Market penetration boosting sales of present products by more aggressive selling in the
firms current markets
Product development developing improved products for current markets
Geographic expansion expanding operations in new geographic areas or countries
Horizontal integration acquiring control of competitors in the same or similar markets
with the same or similar products
Vertical integration owning or controlling the inputs to the firms processes and/or the
channels through which the products or services are distributed
Diversification expanding into related or unrelated products or market segments
Investment Reduction reducing the company’s investment in one or more of its lines of
business
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