1. What is the impact of analyzing the internal and the external environment in planning?
“Analysis of internal factors (resources and capabilities) and external conditions (opportunities and/or threats) is important to crafting a strategy. “
2. What roles do different levels of management play in the planning process?
“Board or Owner
A company’s board or owners create the mission and write a mission statement for the internal and external audiences. A company’s board or owners also articulate a company’s core values, those standards the business will never compromise.
Top management must translate the vast scope of mission and vision into concrete achievements over time. In other words, top management needs a strategic plan.Management then chooses a grand strategy, such as growth or diversification, to reach strategic goals. Of all management levels, top managers spend the most time making decisions involving plans.
Once top management decides the overall direction of the company, it’s up to middle management to choose smaller tactical objectives that, put together, accomplish strategic goals. Middle managers create tactical plans, which have more detail than strategic plans. The tactics often are geared toward some function or department such as production, where a possible objective could involve some measurable efficiency or quality improvement.
Also called first-line management, operational management is the level directly responsible for employees. By choosing their own goals on a daily, weekly or monthly basis, first-line management accomplishes the objectives of middle management. The scope of operational management covers departments, sections or teams. Inventory, scheduling and budgeting are examples of plans and decisions that operational managers adopt.”