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Planning:

Processes and
Techniques
Managers Planning

Planning is a process of decieding in


advance:

Step 1 WHAT is to be done?


Step 2 HOW it is to be done?
Step 3 WHERE is it to be done?
Step 4 WHEN it is to be done?
Step 5 By whom is to be done?
It is a process of a course of action to achieve the
desired goals and objectives.
PLANNING
It is a process of

Determination/accomplishment of
sequence of activities followed by a
term/Individuals to achieve goals
and objectives
It peeps to look at future.
Features of Planning
Primary Function
Focuses on achieving objectives
Pervasive
Continues Process
Mental Exercise
Decision Making
Forward Looking
Flexible
Process
Process
Decision Making Stages and
Formal Planning Steps
The Strategy Map

Customer
Response

Customer
Response
Importance
Provides Direction
Reduces risk of uncertainties
Reduces Overlapping &wasteful activities
Innovative ideas
Facilitates decision making
Establishes standard for
controlling
Limitations
Leads to rigidity
May not be a dynamic environment
Reduces creativity
Involves huge cost
Time consuming
Does not guarantee success
Natural calamity
Monitor and Control
Managers must continually monitor the
actual performance of their work units
against the unit’s goals and plans.
Manager’s also need to develop control
systems to measure that performance and
allow them to take corrective action when
the plans are implemented improperly or
when the situation changes
Strategic Planning
Strategic planning
 A set of procedures for making decisions
about the organization’s long-term goals and
strategies
Strategic goals
 major targets or end results that relate to the
long-term survival, value, and growth of the
organization.
Summary of Strategies
SWOT Analysis and Strategy
Formulation

Vertical integration
 The acquisition or development of new
businesses that produce parts or
components of the organization’s product
Concentric diversification
 A strategy used to add new businesses
that produce related products or are
involved in related markets and activities.
SWOT Analysis and Strategy
Formulation

Low-cost strategy
 A strategy an organization uses to build
competitive advantage by being efficient and
offering a standard, no-frills product
Differentiation strategy
 A strategy an organization uses to build
competitive advantage by being unique in its
industry or market segment along one or
more dimensions.
Strategy Implementation
1. Define strategic risks
2. Assess organization capabilities
3. Develop an implementation agenda
4. Create an implementation plan
Strategic Control
Strategic control system
 A system designed to support
managers in evaluating the
organization’s progress regarding its
strategy and, when discrepancies
exist, taking corrective action.
BCG Matrix

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