2. `
Planning is the process of deciding in advance
what is to be done, where, how and by whom it
is to be done.
it is basically a process of ‘thinking before doing
Planning is the selection from among alternatives
for future courses of action for the enterprise as
a whole and each department within it.

3. NATURE OF PLANNING
(a) Planning is a mental activity.
(b)Planning is goal-oriented
c) Planning is forward looking
(d)Planning pervades all managerial activity
(e) Planning is the primary function
(f) Planning is based on facts.
(g)Planning is flexible.
(h) Planning is essentially decision making

4. SIGNIFICANCE OF PLANNING
(a) Minimizes uncertainty.
(b) Emphasis on objectives
(c) Promotes coordination
(d)Facilitates control
(e) Improves competitive strength
(f) Economical operation
(g)Encourages innovation
h)Tackling complexities of modern business

6. You all know
Business organizations serve a purpose in the
society. Simply you can understand this why to
run a business?
To earn profit( return on investment)
To serves society/customer needs( to satisfy
customer needs)

7. This purpose which is also called strategic intent
is jointly stated by Vision, mission and goal of
an organization.
Before going into the details of planning, there is
a need to understand these terms

8. Vision:
Vision is a picture of what the firm wants to be
and, in broad terms, what it wants to ultimately
achieve
Example:
• Our vision is to be the world’s best quick service
restaurant (McDonald’s)
• To make the automobile accessible to every
American (Ford Motor Company’s vision when
established by Henry Ford)

9. Mission
Mission : answers three questions
Why a company is in existence?
What it is offering?
Whom it is serving to ?
How it is serving ?
Example:
Be the best employer for our people in each
community around the world and deliver operational
excellence to our customers in each of our
restaurants (McDonald’s)

10. Goals
What an organization wants to accomplish in a
future period of time.
A desired future state an organization wants to
realize.
Goals are general statement about profitability
, growth and survival of business for a longer
period of time

11. objectives
Objectives are desired targets in specific relevant
areas that an organization wants to achieve
during a fixed time period.
Objectives are concrete , specific and
quantitative.
Objectives are statement of results, a firm seeks
to achieve during a specified period of time

12. Objective formulation

13. Examples of objectives
Decrease overall customer complaints from 3% to
less than 1% by 2012
Increase the cash flow of the business by 10%
within 2 years.

14. Process of Planning in organizations
.
The Environmental Context
The organization’s mission
• Purpose • Premises • Values • Directions
Strategic goals Strategic plans
Tactical goals Tactical plans
Operational goals Operational plans

15. Steps in Planning
Being aware of opportunity Comparing alternatives in light of goals
The market , competition , customer needs Which alternative will give us the best chance of meeting goals at
, strengths and weaknesses lowest costs and highest proffit
Setting objectives or goals
Choosing an alternative
Where we want to be and what we want to
Selecting the cosur
accomplish and when
Considering planning premises Formulating supporting plans
In what environment :internal and external our Buy equipments, materials, hire workers, develop a new product
plans
Identifying alternatives:
? Numberizing plans by making budgets
What are the most appropriate alternatives Develop budgets such as volume and price of sales, operating
expenses, necessary for plans , expenditure for capital equipment

16. Types of Plans

17. Types of Planning
• Strategic Planning
• A general plan outlining resource
allocation, priorities, and action steps to
achieve strategic goals. The plans are set
by and for top management.
• Tactical Planning
• A plan aimed at achieving the
tactical goals set by and for
middle management.
• Operational Planning
• Plans that have a short-term focus.
These plans are set by and for lower-level
managers.

19. Strategic Goal (formed by top level management)
1.Provide 14 % return to investors for at least ten years 2.Start and purchase new
restaurant chain within five years 3. Negotiate new labor contract this year
TACTICAL GOALS (formed by Middle level Managers)
V.P OPERATIONS
•Open 150 new restaurant V.P MARKETING V.P FINANCE
in next ten Keep corporate debt to no
Increase per store sell 5% per more than 20 percent of
years, Decreasing food
container costs by 15% in 5
year for next 10 yrs., target liquid assets for next ten
and attract two new market years, Revise computerized
years, decrease average accounting
customer wait by 30 sec. segments during next 5 years, system within five years
OPERATIONAL LEVEL GOAL : LOWER LEVEL MANAGEMENTACCOUNTING MANAGER
ADVERTISING MANAGER Split accounts
RESTAURANT MANAGER
Develop regional marketing receivable/payable
Implement employee incentive
campaign this year, Negotiate 5% functions from other areas
system within one
cheaper advertising next within
year, Decrease waste by 5
year, implement this year two years, Computerize
percent this year, Hire and train
promotional strategy payroll system for each
new assistant manager
restaurant this year, Pay all

20. STRATEGIC PLANNING PROCEDURE
1. Strategic analysis is carried out
2. Mission statement is revised or
produced
3. Corporate strategy
is developed
4. Business strategies
are developed
5. Implementation is determined
6. Strategies and implementation are
assessed
7. Strategic documents are formulated and
approved

21. STRATEGIC PLAN INCLUDE
DOCUMENT STANDARD COMPONENT
Mission statement Description of product, customer group,
technology and values
Corporate strategy • Definition of businesses
(combinations of products and/or services
offered
and served markets or niches)
• Market position aspirations
(usually in terms of market share objectives for
the
Businesses
• Investment objectives
(priorities given to the investments in the
different
businesses)

22. DOCUMENT STANDARD COMPONENT
Business Level • Generic competitive strategy
Strategy (separate (cost leadership or differentiation)
for each business) • Competitive advantages on the level of offers
• Competitive advantages on the level of resources
Strategic program • Program objectives
(for each group of • Program organization
implementation (organizational structure, persons involved)
measures) • Process and milestones
(program steps, timetable)
• Budget
(internal and external program cost)

23. Tactical goals
• Tactical goals and objectives are directly related to the
strategic goals of the organization. They indicate the
levels of achievement necessary in the departments and
divisions of the organization. Tactical goals and
objectives must support the strategic goals of the
organization. For example, if a strategic goal states that
the organization is going to reduce total costs by 15
percent next year, then the different departments of the
company would set tactical objectives to decrease their
costs by a certain percentage so that the average of all
departments equals 15 percent.

24. Tactical Planning
Tactical plan
A plan aimed at achieving tactical goals and
developed to implement specific parts of a strategic
plan

25. Developing and executing Tactical plans
Developing tactical plans Executing tactical plans
• Recognize and understand • Evaluate each course of action
overarching strategic plans in light of its goal
and tactical goals • Obtain and distribute
• Specify relevant resource and information and resources
time issues • Monitor horizontal and vertical
• Recognize and identify human communication and integration
resource commitments of activities
• Monitor ongoing activities for
goal achievement

26. Example of Tactical Planning
Coca cola developed strategic plan to cement its
dominance in soft drink industry
• they identified a threat :- independent bottling
plants.
• Coca-Cola bought several large independent
bottlers and combined them into one new
organization called “Coca-Cola Enterprises
• Establishing new business was a tactical plan to
realise strategic plan.

27. Operational Goals & Operational
Planning
Operational Goals. Operational goals and
objectives are determined at the lowest level of
the organization and apply to specific employees
or subdivisions in the organization. They focus
on the individual responsibilities of employees.
For example, if the department’s tactical goal is
related to an increase in return on assets by 5
percent, then the sales manager may have an
operational objective of increasing sales by
10 percent.

28. Operational planning generally assumes the
existence of objectives and specifies ways to
achieve them. Operational planning is short-
range planning that is designed to develop
specific action steps that support the strategic
and tactical plans. Operational planning usually
has a very short time horizon, from one week to
one year.

29. Types of Operational Plans
Plan Description
Single-use plan Developed to carry out a course of action not likely to
be repeated in the future
Program Single-use plan for a large set of activities
Project Single-use plan of less scope and complexity than a
program
Standing plan Developed for activities that recur regularly over a
period of time
Policy Standing plan specifying the organization’s general
response to a designated problem or situation
Standard operating procedure Standing plan outlining steps to be followed in
particular circumstances
Rules and regulations Standing plans describing exactly how specific
activities are to be carried out
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