In addition, most managers have backup, or contingency, plans. • A strategic plan is a plan designed to achieve the long-term goals of an organization as a whole. The plan projects for the future and is written by senior management. • A tactical plan is a plan that involves activities needed to implement strategic plans defined by senior management. It includes short-term goals of the company. Middle level managers are typically responsible for writing and executing these plans for their divisions in the organization. • An operational plan is a plan that defines the day-to-day tasks and activities that employees must perform to meet company goals. Operational plans are usually written for a quarter and then a year. They are used by supervisory management to define job responsibilities outlined in the tactical plans. Most managers also write a contingency plan. A contingency plan is a backup plan that outlines alternative courses of action to take if other plans prove unproductive or circumstances beyond control change. Management considers operating problems that can result from factors such as employee labor strikes, material shortages, or political instability. In addition, natural disasters, such as storms, floods, and fire, can affect the operation of a business. Good management requires “keeping all options open,” and this is when contingency plans come into play. LO LO 3.1-4 3 . 1 - 4 Research Planning for an organization does not take place overnight. There is much time spent on researching information and making analyses before plans are developed. Research can take days, weeks, or even months before the actual planning process gets underway. For most organizations, it is an ongoing exercise. Market research is gathering and analyzing information to help make sound marketing decisions. Market research for the planning process includes reviewing the environment in which the organization operates. The environment includes the internal and external factors that affect an organization. Internal factors are those that the business can control, such as facilities or number of employees. External factors are those that an organization cannot control, such as the economy and the competition. Information gathered from research helps managers plan what to produce, how to produce, and for whom to produce in the planning process. There are two types of research used to gather information for planning purposes: primary and secondary research. Primary Research Primary research is first-hand research conducted by a researcher. The researcher can be someone within the organization, such as a marketing manager. Gaining customer feedback and product research through surveys, focus groups, and case studies are examples of primary research tools. Online survey tools, such as Survey Monkey, are a good way to capture customer information. Some organizations prefer to hire an outside agency, such as Nielsen, to provide market research. Both options are reliable ways to obtain firsthand information about internal and external factors that affect planning. Secondary Research Secondary research is data already collected and recorded by someone else. This is research that someone else has already gathered, but others can use it. Using the Internet to gather industry sales information and statistics about similar organizations is an example. Government sources, industry data, and academic data are examples of research that is already completed and available for use. ESB Professional/Shutterstock.com Market research is gathering and analyzing information to help make sound marketing decisions. Why do you think organizations spend money on market research? Principles of Management 42 Copyright Goodheart-Willcox Co., Inc.