planning process is the capability of the management includes setting targets and deciding a game-plan for accomplishing goals.
Is also process of thinking regarding the activities required to achieve a desired goal
Planning is used by the managers.
Three stage planning process
a. determining : is the process of organization of firm’s mission and goals
b. strategy formulation ; analyzing current situation
c. strategy implementation : allocate resources and responsibilities to achieve strategies
levels of planning
- corporate level: decision by top managers consider on which business or market to be in.
- business level: details divisional long-term goals and structure identify how this business needs to corporate goals
- functional level: action by managers in department of manufacturing marketing and so on.
Characteristics of plan
.Time horizon ; refers to how for in the future the plan applies it can be classify as flow;-
- Long term plans is plans that usually takes 5 years and more
- Intermediate is plans in between 1 to 5 years corporate and business level plans specific and long and intermedia term.
- Short term plans less than 1 year
Types of plans
. standard plans: for programmed decisions
. single use plans: developed for one-time.
Why planning is important
Planners figures out where the association is presently and where it will be from now on.
Good planning provides the company to achieve it’s own goal and objectives. These are factors that makes why planning is important:-
Cooperation : all supervisors are associated with putting forth future objectives
Ability to know east from west and reason : arranging defines objectives and systems for all directors.
Coordination: plans provide all parts of the firm which understanding about how their system it.
Control: plans specify who is a charge of accomplishing a goal.
Determining mission and Goals
- Define the business : seeks to identify our customer and the needs we can and should satisfy.This is also pinpoint competitors
- Establishing major goals : states who will compete in the business.
. ought to extend the organization higher than ever
. objectives should likewise be reasonable and have a time span in which they are accomplished.
Strategy formulation
Managers investigate what is happening to foster procedures accomplishing the mission. And SWOT analyses.
SWOT analysis is planning to identify
- Organizational strength and weakness identifying the organizations strength including strength of manufacturing ability, marketing skills and indicating the organization’s weakness including high labor turnover , and weak financials and other weakness that organization have.
- Environment opportunities and threats is opportunities of new markets and threats from economic recession and competitors
1: corporate – level of strategies
a. concentrate in single business: focuses only one business for example McDonald’s focuses in the fast food business.
b. Diversification: organization moves into new business and servive.
c. Related diversification: firms diversifies in similar areas to build upon existing devisors.
2: international strategy
To what surviving do we modify products and marketing for various national conditions ?
- Global strategy : a single , standard product and marketing approach is used in all countries.
. standardization: provides for lower cost . Ignore public contrasts that others can address
- Multi domestic strategy : products and marketing are customized for each country of operation
. customization provides for high cost . Embraces national difference and depends on them for success.
3: business strategy
Business strategy is the strategy for lowering cost, gaining a competitive advantage by driving organizational costs and managers manufacture at lower cost and reduce waste
. Lower lost thane competitive mean lower price.
. differentiations
Goals for successful functional strategies
- Attain superior efficiency : the measure of out puts for a given unit of input
- Attain superior quality: product that reliable do the job they designed for
- Attain superior innovations: new, naval features about the product or process
- Attain superior responsiveness to outcomes.