Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-1

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-2

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-3 Assessing the Environment Environmental scanning - the screening of large amounts of information to anticipate and interpret changes in the environment. Competitor intelligence - an environmental scanning activity by which organizations gather information about competitors.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-4 Forecasting Techniques Forecasts - predictions of outcomes. Quantitative forecasting - forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. Qualitative forecasting - forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-5 Exhibit PM-1: Forecasting Techniques

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-6 Exhibit PM-1: Forecasting Techniques (cont.)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-7 Benchmarking Benchmarking - the search for the best practices among competitors or non- competitors that lead to their superior performance.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-8 Exhibit PM-2: Steps in Benchmarking

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-9 Allocating Resources Resources - the assets of the organization including financial, physical, human, intangible, and structural/cultural. Budget - a numerical plan for allocating resources to specific activities.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-10 Exhibit PM-3: Types of Budgets

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-11 Exhibit PM-4: How to Improve Budgeting

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-12 Scheduling Scheduling - detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed. Gantt chart - a scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-13 Exhibit PM-5: A Gantt Chart

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-14 Scheduling (cont.) Load chart - a modified Gantt chart that schedules capacity by entire departments or specific resources.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-15 Exhibit PM-6: A Load Chart

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-16 Scheduling (cont.) PERT network - a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each. Events - end points that represent the completion of major activities in a PERT network. Activities - the time or resources needed to progress from one event to another in a PERT network.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-17 Scheduling (cont.) Slack time - the amount of time an individual activity can be delayed without delaying the whole project. Critical path - the longest sequence of activities in a PERT network.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-18 Exhibit PM-7: Steps in Developing a PERT Network

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-19 Exhibit PM-7: Steps in Developing a PERT Network (cont.)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-20 Exhibit PM-8: Events and Activities in Constructing an Office Building

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-21 Exhibit PM-9: PERT Network for Constructing an Office Building

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-22 Breakeven Analysis Breakeven analysis - a technique for identifying the point at which total revenue is just sufficient to cover total costs.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-23 Exhibit PM-10: Breakeven Analysis

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-24 Linear Programming Linear programming - a mathematical technique that solves resource allocation problems.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-25 Exhibit PM-11: Production Data for Cinnamon-Scented Products

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-26 Exhibit PM-12: Graphical Solution to a Linear Programming Problem

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-27 Project Planning Project - a one-time-only set of activities that has a definite beginning and ending point in time. Project management - the task of getting a project’s activities done on time, within budget, and according to specifications. Scenario - a consistent view of what the future is likely to be.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-28 Exhibit PM-13: Project Planning Process

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-29 Terms to Know Environmental scanning Competitor intelligence Forecasts Quantitative forecasting Qualitative forecasting Benchmarking Resources Budget Scheduling Gantt chart Load chart PERT network Events Slack time Critical path Breakeven analysis Linear programming Project Project management Scenario

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 9A-30