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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
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