Unit 2 Review: 9-16

Unit 2 Review: 9-16

1. Zero Based Budget

   • method of budgeting
   • all expenses must be justified for each new period

2. Planning Tools/Techniques

   • Contingency Planning
     • identifies alternative courses of action for when things go wrong
       • ex. snow on mountain melted at Vancouver Olympics so used straw to make ski slopes
   • Scenario Planning
     • identifies alternative future scenarios and plans to deal with each one
       • ex. what will happen after the oil supply runs out?
   • Benchmarking
     • uses external/internal comparisons to plan for future improvements
       • external: other organizations' triumphs
       • ex. Zara: clothing items are scarce in numbers. Buy now because clothing will not be replaced/come back
   • Forecasting
     • process of predicting future events
       • qualitative
       • quantitative

3. Participatory Planning

   • includes people who will be affected by plan and those who implement them
   • motivate and benefits those involved in process