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Planning by Mind Map: Planning
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Planning

The corporate planning process

a) Defining mission

sets the direction (invisible guiding hand)

the general business operation of the mission statements guides the organisation

shaped by, history, preferences, PEST, recources, distinctive competency

b) setting objectives and goals

7 areas of long term objectives, 1) profitability, 2) productivity, 3) competitive position, 4) employee development, 5) employee relations, 6) technology leadership, 7) public responsibility

The long term qualities usually:, acceptable, flexible, measurable, motivating, suitable, understandable and achieveable

c) designing the business portfolio

Use the BSG Matrix

d) New-business plan

aim = to close strategic planning gap, the difference between projected sales and desired sales, How to close the gap?, 1) Achieve growth in the company's current business, = intensive growth, review further possibilities to improve the current business, Product / Market expansion grid to detect new intensive growth opportunities, INSERT TABLE HERE, 2) Find opp to acquire business that are related to the company's current business, = integrated growth, identify growth possibilities, often, sales and profits can be increased through integrating backward, forward and horiontally, 3) id opp to add attractive businesses that are related to the company's current business, = diversification, when good opportunities can be found outside the present business, concentric - seeking new products that synergises with the exsisting product lines even though it may appeal, horizontal - seeking new products that appeal to current customers, conglomerate - seeking new business that have no relationship to the tech products and markets

defination

planning is considered to be the most basic managerial function

sets the direction for organisating, leading and controlling functions

establishes rationale

defines goals and objectives for future performance and how to reach them

a) choosing organisation mission and objectives for short run and long run

b) divising objectives for different levels of control and hierarchy level

c) choosing the suitable strategy and tactics to achieve objectives

d) deciding on the allocation of resource to the strategies

Business Level Planning

Business Mission

Guides the business activities of the BU and SBUs within the framework of the corporate mission

External/Internal analaysis

External, SWOT - Strength, Weakness, Opportunities, Threats, Provides a base for auditing and troubleshooting, Design and convergent & matching strats, PEST, Porters 5 forces model, useful for firms to determine the attractiveness or strength of the competition in the industry

Internal, Identify Strengths & Weaknesses, Use BCG Matrix, Porters's Value Chain, Helps Identify which resources and capabilities add value

Good formulation

Strategy formation

Company can think of 3 strategies or it can choose 1 or all of them to pursue., 1) focus strategies -> specialised, niche group, 2) low-cost leadership, 3) differenation, trying to be the 'extra' to vie for customer loyalty

Programe evaluation

a time table for implementation

Implementation

7-S Framework by Peters & Waterman, Hardware, Strategy, Structure, Systems, Software, Style, Staff, Skills, Shared Values

Feedback and Control

can be determined by, 1) Mkt share, 2) Sales, 3) profits

If the objective is not achieved, then implement corrective measures such as Promotions or Change in product design

If all still fails, then diversify into another business

Strategic vs Tactical vs Operational Planning

INSERT TABLE HERE

Strategic Planning

Long Term

Set general directions for the whole organisation

Top most management (band of directors)

affects the whole organisation

Tactical Planning

Responsibility of the middle management

incharge of various deparments

Sync with other departments

Carry out the strategies prepared by the top management

Operational Plannings

appointed by lower management

usually supervisors

allocate duties to staff that are under their chain of command