• Classify the types of goals organizations might have and the plans they use • Compare and contrast approaches to goal-setting and planning • Discuss contemporary issues in planning
involves: – Defining the organization’s goals – Establishing an overall strategy for achieving those goals – Developing plans for organizational work activities
Execute strategic roadmap— Expand selection of competitively
“Plan to Win.” priced products. Grow the business profitably. Manage inventory carefully. Identify and develop diverse Continue to improve store format every talent. few years. Promote balanced, active Operate 2,000 stores by the end of the lifestyles. decade. (McDonald’s Corporation) Continue gaining market share. (Target)
Continue to win market share Roll out newly-designed
globally. environmentally friendly cup in 2006. Focus on higher-value products. Open approximately 1,800 new stores Reduce production costs. globally in 2006. Lower purchasing costs. Attain net revenue growth of Integrate diversity. approximately 20 percent in 2006. Gain ISO 14001 certification for all Attain annual EPS growth of between factories. 20 percent to 25 percent for the next 3 (L’Oreal) to 5 years. (Starbucks) Exhibit 7–1Types of Plans
• Written in terms of • Challenging yet attainable
outcomes, not actions Low goals do not motivate. Focuses on the ends, not High goals motivate if they the means. can be achieved. • Measurable and • Written down quantifiable Focuses, defines, and Specifically defines how the makes goals visible. outcome is to be measured • Communicated to all and how much is expected. necessary organizational • Clear as to time frame members How long before measuring Puts everybody “on the accomplishment. same page.”