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tapping into online postings and sharing technologies as part of CHAPTER 5 • Foundations of Planning 165
their daily routines. Collaborating with colleagues and experts A Question of Ethics
allows them to improve the speed and efficiency of patient care.
At TrunkClub, an online men’s clothes shopping service that Do you shop? Well, you might be saying to yourself, that’s kind of a
sends trunks with new clothing items to clients who’ve requested stupid question . . . of course I shop. Well, here’s another question:
them, the CEO uses a software tool called Chatter to let the Do you realize the extent to which retail stores are spying on you
company’s personal shoppers know about hot new shipments as you shop? Although most of us “accept” the fact that when
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of shoes or clothes. He says that when he “chats” that informa- we shop online, we’re “allowing” the online retailer to install its
tion out to the team, he immediately sees the personal shoppers
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putting the items into customers’ “trunks.” When used strategi- cookies and to track our every move and click. Now, however, tech-
cally, social media can be a powerful weapon, as can big data! nology is being used more frequently in the physical retail environ-
ment. And it’s more than cameras watching us. Many retailers are
using cell phone tracking technology, personalized advertising, and
Big data as a strategic Weapon. Big data can be an ef-
fective counterpart to the information exchange generated through super spy cams. Why? To track your behavior and to get you (and
social media. All the enormous amounts of data collected about all those other shoppers) to buy more. Results from a recent survey
customers, partners, employees, markets, and other quantifiables showed that 80 percent of consumers do not want stores to track
can be used to respond to the needs of these same stakeholders. their movements via smartphone. And 44 percent said that a track-
With big data, managers can measure and know more about their ing program would make them less likely to shop with that store.
businesses and “translate that knowledge into improved decision If your professor has assigned this, go to the Assignments section of
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making and performance.” Case in point: When Walmart began mymanagementlab.com to complete these discussion questions.
looking at its enormous database, it noticed that when a hurricane
was forecasted, not only did sales of flashlights and batteries Talk About It 3: What ethical dilemmas are involved with
increase, but so did sales of Pop-Tarts. Now, when a hurricane is the strategy of retail consumer tracking?
threatening, stores stock Pop-Tarts with other emergency storm Talk About It 4: What factors might influence a business’s
supplies at the front entrance. This helps them better serve custom- decision to use this strategy? (Think in terms of the various stake-
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ers and drive sales. By helping a business do what it’s in business holders who might be affected by this decision.)
to do, compete successfully, and attract and satisfy its customers in
order to achieve its goals, big data is a critical strategic weapon.
Once managers have the organization’s strategies in place,
it’s time to set goals and develop plans to pursue those strategies.
How Do Managers Set Goals and Develop Plans?
5-3 Compare and Planning = Goals + Plans
contrast Planning involves two important aspects: goals and
approaches to plans. Goals (objectives) are desired outcomes or targets.
goal setting and They guide managers’ decisions and form the criteria
planning. against which work results are measured. Plans are docu-
ments that outline how goals are going to be met. They
usually include resource allocations, budgets, schedules,
and other necessary actions to accomplish the goals. As managers plan, they develop both focus strategy
goals and plans. When an organization competes in a narrow
segment or niche with either a cost focus or a
What Types of goals Do Organizations Have and How Do They Set differentiation focus
Those goals? functional strategy
Strategy used in an organization’s various
functional departments to support the competitive
Although it might seem that organizations have a single goal—for businesses, to make a strategy
profit, and for not-for-profit organizations, to meet the needs of some constituent group(s)—
an organization’s success can’t be determined by a single goal. In reality, all organizations goals (objectives)
have multiple goals. For instance, businesses may want to increase market share, keep Desired outcomes or targets
employees motivated, or work toward more environmentally sustainable practices. And a plans
church provides a place for religious practices, but it also assists economically disadvantaged Documents that outline how goals are going to
individuals in its community and acts as a social gathering place for church members. be met