Parts of the Various Functional Area Plans

Types of Plans
Functional Area Plans:

- Marketing Plan
- Production Plan
- Financial Plan
- Human Resources Plan

Plans with time and Horizon

- Short-range Plan
- Long-range Plan

Plans with varied Frequency of Use

- Standing Plan - Single-use Plan

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The content of the Marketing Plan:

1. Executive Summary
2. Table of contents
3. Situational Analysis ang Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control

The Contents of the Production Plan: (note: it must contain the ff.)

1. The amount of capacity the money must have

2. How many employees are required
3. How much material much be purchased

The contents of the Financial Plan:

1. An analysis of the firm’s current financial condition as indicated by an analysis of the most recent
statements
2. Sales forecast
3. Capital Budget
4. Cash Budget
5. A set of pro forma (or projected) financial statements
6. The external financing plan
 Parts of the Various Functional Area Plans
Contents of the Human Resources Plan: (note: the ff. must be included)

1. Personnel requirements of the company

2. Plans for recruitment and selection
3. Training Plan
4. Retirement Plan

Parts of Strategic Plan: (note: the ff. must be included)

1. Company or Corporate mission
2. Objectives or Goals
3. Strategies

Additional info: Company or corporate mission refers to the “strategic statement that identifies why an
organization exists, its philosophy of management, and its purpose as distinguished from other similar
organizations in terms of products, services, and markets.

Making Planning effective:

 Planning maybe made successful if the following are observed:
1. Recognize the planning barriers
2. Use of aids to planning

Planning Barriers according to Plunkett and Attner:

1. Manager’s inability to plan

2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables

Among the aids planning that may be used are:

1. Gather as much information as possible

2. Develop multiple sources of information
3. Involve others in the planning process
 Parts of the Various Functional Area Plans

Example of Marketing Plan Schedule:

Buenavista Manufacturing Company

Marketing Plan Schedule
For the Year Ending December 31, 1998

Product A. Unit Amount

January 85, 000 Php 430, 500

February 90, 000 Php 455, 500
March 95, 000 Php 481, 500
Total 1st Quarter 270, 000 Php 1, 367, 000
2nd Quarter 280, 000 Php 1, 317, 000
3rd Quarter 190, 000 Php 962, 500
4th Quarter 280, 000 Php 1, 419, 000

Total A: 1, 000, 000 Php 5, 066, 000

Product B.

January 34, 000 Php 69, 900

February 41, 000 Php 84, 500
March 45, 000 Php 92, 600
Total 1st Quarter 120, 000 Php 247, 000
2nd Quarter 135, 000 Php 278, 000
3rd Quarter 96, 000 Php 195, 500
4th Quarter 150, 000 Php 308, 500

Total A: 500, 000 Php 1, 029, 000

Total A and B: Php 6, 095, 000
 Parts of the Various Functional Area Plans
Example of an Production Plan Schedule:

Buenavista Manufacturing Company

Detailed Production Plan
For the Year Ending December 31, 1998

:REQUIRED :ADD : TOTAL :LESS :UNITS

FOR FINAL REQUIRED INITIAL TO BE
SALES INVENTORY INVENTORY COMPLETED
OF FINISHED OF FINISHED
GOODS GOODS

Product A.

January 85, 000 225, 000 310, 000 240, 000 70, 000
February 90, 000 215, 000 305, 000 225, 000 80, 000
March 95, 000 200, 000 295, 000 215, 000 80, 000
Total 1st Quarter 270, 000 200, 000 470, 000 240, 000 230, 000
2nd Quarter 280, 000 180, 000 440, 000 200, 000 240, 000
3rd Quarter 190, 000 220, 000 410, 000 180, 000 230, 000
4th Quarter 280, 000 200,000 480, 000 220, 000 260, 000

Total A: 1, 000, 000 200, 000 1, 200, 000 240, 000 960, 000

Product B.

January 34, 000 100, 000 134, 000 100, 000 34, 000
February 41, 000 95, 000 136, 000 100, 000 39, 000
March 45, 000 88, 000 133, 000 95, 000 38, 000
Total 1st Quarter 120, 000 88, 000 208, 000 100, 000 108, 000
2nd Quarter 135, 000 93, 000 228, 000 88, 000 140, 000
3rd Quarter 96, 000 125, 000 220, 000 93, 000 127, 000
4th Quarter 150, 000 120,000 270, 000 125, 000 145, 000

Total B: 500, 000 120, 000 1, 200, 000 100, 000 520, 000