TYPES OF PLANNING

1 MBA

TYPES OF PLANNING

Coverage of activities Importance of contents

Time period involved

Approach adopted Degree of formalization

Corporate & functional Planning. Strategic& Tactical planning Long & Short term planning Pro-active& Reactive planning Formal & Informal planning

CORPORATE &FUNCTIONAL PLANNING

Planning activities at the top level - covers organizational activities. Determine long term objectives, & generate plans to achieve these objectives.

Functional planning is undertaken for each major function in organization- sub function For ex., marketing plan, sales promotion, marketing research.

STRATEGIC PLANNING& OPERATIONAL PLANNING

It sets the long term direction of the organization in which it wants to proceed in future For ex., planned growth rate in sales, Diversification of business,Types of products offered

Sustainability Why is the action required? What action is to be taken? What will the action accomplish? What are the results of the action required? What objectives and conditions must be met?

LONG TERM&SHORT TERM PLANNING

Strategic in nature, 1 yr extending to 20 yrs or so. More common is 3-5 yrs Encompasses all functional areas within existing and long term frame work of economic, social,& technological factors. What changes impact on organization.

Operational in nature, covers 1 yr. Concentrates on existing affairs of the organization. These plans directly affect functional groups like Production, Marketing, & Finance.

PROACTIVE & REACTIVE PLANNING

Proactive planning involves designing suitable courses of action in anticipation of likely changes in relative environment. Decentralized control Ex., Reliance industries, Hindustan Unilever.

Responses

come after environmental changes come. This is generally used in stable environment for long time period.

TYPES OF PLANS

STANDING AND SINGLE-USE PLANS. STRATEGIC AND OPERATIONAL PLANS.

Types of Plans

STANDING PLANS It provide guidelines for further course of action and used over a period of time. Once formulated these plans are in operation for a long period unless there is a change in these plans. Ex. Objective, vision, mission .

SINGLE-USE PLANS

Relevant for specific period and lapses. Ex., projects, budgets, quotas, targets.