Decision Making and Planning Process

Essay by scorpio1971University, Bachelor'sA+, May 2009

download word file, 5 pages 3.0

Running head: Decision Making and Planning Process

Decision Making and Planning Process

Andrea Jones

University of Phoenix

Decision Making and Planning Process

Decision making and planning are a critical processes in any organization. Decision making is the foundation of planning. All organizations engage in planning activities, but no two organizations plan in exactly the same manner. The purpose of strategic management is to develop an effective long- range plan. The model of strategic management involves planning organizational missions; assessing relationships between the organization and the internal and external environments; identifying as well as evaluating, and implementing strategic alternatives granting them to successfully complete their mission. Managers' functions or a duty at each level is important as well as different in all aspects.

There are many different kinds of organizational planning methods. The four basic levels of goals are the mission, strategic, tactical, and the organizational goals. Contingency planning is another essential type of planning.

The first plan is the strategic plan it develops strategic goals. This universal plan outlines the established goals that reflect effectiveness (appropriate outputs) and efficiency (high ratios outputs to inputs). Effective strategy is a pattern of actions and resource allocations designed to achieve organizational goals. Strategic plans have strong external orientation these executives are responsible for development. There are five basic questions that must be answered in order to for effective strategy to occur: 1.) Where will we be active? 2.) How will we get there (ex. Increasing sales)? 3.) How will we win the marketplace (keep prices low/offer the best services)? 4.) How fast will we move and in what sequence will we make changes?

5.) How will we obtain financial returns (low costs/premium prices)? These plans are designed by the presidents; CEO's and board of directors, who are top management of companies.

The second...