RSM100Y1 Chapter Notes - Chapter 6: Swot Analysis, Walmart, Chief Operating Officer

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Published on 26 Sep 2011
School
UTSG
Department
Rotman Commerce
Course
RSM100Y1
Professor
RSM 100Y – Chapter 6: Managing the Business Enterprise
Purposes of Goal Setting
1. Provides direction, guidance and motivation for all managers
a. Measurable benchmarks, mitigates errors, provides focus
2. Helps firms allocate resources
a. More resources to growing parts of business
3. Define corporate culture
a. External goals = Internal actions to achieve the goal
4. Helps managers asses performance
a. Success or failure of measurable benchmarks
Mission Statement: Organizations statement of how it will achieve its purpose
Types of Goals
1. Long-Term Goals ----- 5 Years+
2. Intermediate Goals --- 1 to 5 Years
3. Short-Term Goals ----- <1 Year
Strategy Formulation
Step 1: Setting Strategic Goals (Long term goals derived from mission statement)
Step 2: SWOT Analysis (Internal = SW vs. External Environment = OT)
Strengths, Weaknesses, Opportunities, Threats
Step 3: Match Organization and Environment
Over the long term it determines the conservatism vs. riskyness of firm
Hierarchy of Plans
Strategic Plans
Determines resource allocation/company priorities for STEP1: Strategic Goals
Tactical Plan
Short-range plans concerned with implementation specific aspects of strategic plans
Operational Plan
Developed by lower management for short-term targets (daily, weekly, monthly)
Levels of Strategy
Corporate Level – Determines type of business a company will be in/how they relate
Business Level – How the business will compete in their chosen line of products
Functional Level – Identifies actions each part of a firm will take to achieve overall goal
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Document Summary

Rsm 100y chapter 6: managing the business enterprise. Mission statement: organizations statement of how it will achieve its purpose. Types of goals: long-term goals ----- 5 years+ Step 1: setting strategic goals (long term goals derived from mission statement) Step 2: swot analysis (internal = sw vs. Over the long term it determines the conservatism vs. riskyness of firm. Determines resource allocation/company priorities for step1: strategic goals. Short-range plans concerned with implementation specific aspects of strategic plans. Developed by lower management for short-term targets (daily, weekly, monthly) Corporate level determines type of business a company will be in/how they relate. Business level how the business will compete in their chosen line of products. Functional level identifies actions each part of a firm will take to achieve overall goal. Concentration: focus the company on one product or product line (eg. Growth: focus on internal activities to grow through market penetration (aggressively selling in current markets), product development, and geographic expansion.