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1. Which of the fundamentals of planning did GE execute ineffectively? Explain
your rationale.
The company’s operational plan was not effectively executed. It did not consider
all the issues at hand with transporting the drilling equipment. Though middle
2. Which of the three types of goals were ineffectively managed by GE? Explain.
The same justifications as mentioned in the first question can be used here. It
3. State two SMART goals for GE based on the case. Given the political issues
discussed in the case, how might GE ensure that these goals are attainable?
Discuss.
4. Using Figure 5.5, describe what GE could have done to improve the process of
transporting the evaporator. Provide specific recommendations.
The first recommendation would be to include all the proper approvals needed for
MANAGEMENT IN ACTION: GE’s Poor Planning Results in Delays & Increased
Costs
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5. What did you learn about planning based on this case? Explain.
Proper planning is key when it comes to large-scale projects. If a plan does not
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How Do You Think Companies Should Respond to Accusations Made by a
Whistle-Blower?
We defined a whistle-blower in Chapter 3 as an employee who reports organizational
misconduct to the public. Whistle-blowing is important to organizations for many
Solving the Challenge:
What do you think management at Renault should have done about the
anonymous accusation about a senior official negotiating a bribe?
1. A four-month investigation is enough time to investigate the claim of bribery.
Renault obviously was “tricked” by the anonymous tipper.
I thus would punish the person who made the false claim and hire back the three
2. Renault obviously did not conduct a thorough investigation prior to firing the three
employees. The company needs to develop detailed guidelines for how such
LEGAL/ETHICAL CHALLENGE
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3. Renault should have hired an outside firm to investigate the claim, or they should
have consulted with an outside law firm to review results from the investigation
and render an opinion to senior executives. They also need to hire back the
employees and pay them for the time they were dismissed.
Having an outside party investigate may be a good idea, but it is not foolproof
4. Invent other options.
Renault can lobby the government for changes to the law that allows for such
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Group Exercise #1: Investigating Corporate Mission and Vision Statements
Objectives
• To explore the value of creating an organizational mission statement, vision
statement, and supporting goals.
Introduction
The overall purpose of this exercise is to enhance students’ understanding about the
Instructions
1. Be sure to define mission statement (expresses the purpose of the organization),
2. Give the students the assignment of referring to Coca Cola’s web page:
3. Ask students to print Coca Cola’s mission statement, vision statement, and
Questions for Discussion
1. What are Coca-Cola’s mission and vision statements?
2. Do the organizational goals clearly support these statements? Try to get your
students to explain “how” the goals support the mission and vision.
GROUP EXERCISES
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Group Exercise #2: Using SMART Goals to Plan a Student Organization
Objectives
• To engage in planning by writing SMART goals and action plans for a new student
organization.
Introduction
Instructions
1. Lecture on the planning process and the criteria for writing SMART goals. There
2. Tell the students that the goal of this exercise is for them to experience two major
components of the planning process: creating operational goals and action
3. Break the class into groups of 5-6 people. Each group is charged with creating
(1) two SMART goals that the organization will attempt to achieve over the next
4. Reconvene the class after 30 minutes and ask for a volunteer to summarize the
group’s goals and action plan. Ask the remainder of the class to critique whether
Questions for Discussion
1. What has this exercise taught you about the planning process?
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Smart Goals Exercise1
Guidelines for writing SMART goals:
Goals should be stated in specific rather
than vague terms.
Goals should be challenging but realistic
and attainable.
should be results oriented and they should
Whenever possible, goals should be
Restating Poor Goals to SMART Goals
Instructions: Restate each of the goals below as SMART goals.
1. To improve productivity in my department.
Restated:
3. To improve the level of customer service.
Restated:
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Action Plan
Goal:________________________________________________________________
Activities
Responsibility
Primary
Others
Obstacles/Comments
Start Date
Finish Date
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Group Exercise #3: Writing Smart Goals
Objectives
• To provide students with an understanding of goal setting.
• To develop SMART goals through group work.
Introduction
Anyone can define goals. But, the five characteristics of a good goal are represented
Specific
Goals should be stated in specific rather than vague terms. The
goal “As many planes as possible should arrive on time” is too
general. The goal that “Ninety percent of all planes should arrive
within 15 minutes of the scheduled arrival time” is specific.
Measurable
Whenever possible, goals should be measurable, or quantifiable
Attainable
Goals should be challenging, of course, but above all they
should be realistic and attainable. It may be best to set goals that
are quite ambitious so as to challenge people to meet high
standards. Always, however, the goals should be achievable
within the scope of the time, equipment, and financial support
available. If too easy (as in “half the flights should arrive on
time”), goals won’t impel people to make much effort. If
impossible (“all flights must arrive on time, regardless of
weather”), employees won’t even bother trying. Or they will try
and continually fail, which will end up hurting morale. Or they will
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verbs should not be used in your goal statement because they
imply activities—the tactics used to accomplish goals (such as
having baggage handlers waiting). For example, you should not
use “to develop,” “to conduct,” “to implement.”
Target Dates
Goals should specify the target dates or deadline dates when
they are to be attained. For example, it’s unrealistic to expect an
Instructions
1. First, students should review the following categories.
• Career
2. Students should pick 3 of these 7 categories and write a personal SMART goal
relevant to each category.
3. Break students into groups of 3 or 4 after they complete step 2.
4. Each student should share their first goal with the group. Others in the group then
provide feedback on whether it is a SMART goal or provide feedback to make it a
Questions for Discussion
1. Did you find this exercise easy, moderate, or hard? Why?
2. Why is it hard to write SMART goals?
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1) Where They’re Doing Something New
Teaching Objective: To illustrate the importance of innovation, provide examples of
innovative companies, and emphasize the necessity of planning to achieve innovation.
Summary: Innovation can change industries and bring big pay-offs to companies who
Questions:
1. What strategy do innovative companies use when responding to uncertainty in
the environment? What is the cost of following this strategy?
Answer: Innovative companies are prospectors that follow the motto, “Let’s
2. Why should a company wanting to innovate express that goal in a vision
statement?
Answer: A vision statement expresses what the organization should become and
3. With Nintendo’s Wii gaming system as an example, briefly describe the three
types of planning required to launch an innovative new product.
Answer: First, strategic planning by top management is required. As part of their
plans for growth and profit, Nintendo executives would decide to expand the
VIDEO CASES
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Third, middle managers pass these plans along to first-line managers to do
2) Panera Bread: Strategy
Teaching Objective: To illustrate the fundamentals of planning as applied to strategic
planning and goal-setting.
Summary: Panera is part of a trend toward healthier eating and more balanced living.
Its menu includes homemade artisan breads, soups, salads, bagels, specialty
Questions:
1. During the 1980s, Shaich and his colleagues began developing a strategy for
changing the way America eats. How did they decide on the bakery café
strategy? Did Panera’s leaders seem to follow the six steps of strategic
planning?
Answer: The owners did some forecasts of how to change the business in the
mid 1990s, after some growth and success with what they started out as. At this
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2. A mission describes the company in its current state. Strategic vision, on the
other hand, looks to the future of the business and where it wants to be.
Describe what you think is Panera’s strategic vision. What do you think is the
most important component to that vision?
Answer: Student responses will vary some with this question. Panera’s vision
values and be successful.
3. Stakeholders are those groups and individuals who affect and are affected by the
achievement of the organization’s mission, goals, and strategy. Identify the
stakeholders in Panera’s success. How can collaborating with key stakeholders
help Panera execute its strategic plan?
Answer: Panera’s stakeholders include those invested directly in the business
itself, the owners, shareholders, and franchisees. They also include the
Additional videos directly related to the textbook can be found in the Connect
Instructor’s Manual.
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MANAGER’S HOT SEAT