PLANNING AND STRATEGIC MANAGEMENT

Presenters: Dhara G

PLANNING

Definition
A particular type of decision making that addresses the specific future that managers desire for their organizations.

IMPORTANCE
Provide us direction

OF GOALS IN PLANNING

One knows what really to achieve. Enhance motivation as there is a finite target.

Focus our efforts

Effective utilization of our resources esp. scare resources.

Guide our plans and decisions

Laying out short term and long term plans become clear.
As goals are measurable and have specific deadlines so individuals and managers can evaluate there progress.

Evaluation of Our progress

HIERARCHY

OF ORGANIZATION PLANS

MISSION STATEMENT
Broad organizational goal, based on planning premises, which justifies and organization's existence. CREATED BY: founder, board of directors, or top managers

STRATEGIC PLANS
Plans designed to meet an organization's broad goals. CREATED BY: top and middle managers.

OPERATIONAL PLANS
Plans that contain details for carrying out , or implementing ,those strategic plans in day-today activities. CREATED BY: middle and first-line managers

STRATEGIC

VS.

OPERATIONAL PLANS

Time horizons: Strategic plans tend to look ahead several years or even decades. While for operational plans a year is often the relevant time period

Scope: Strategic plans affect a wide range of organizational activities, whereas operational plans have a narrow scope.
Strategic plans have higher no. of relationships involved than operational plans

Degree of detail: Strategic plans are more generic and simplistic. Operational plans involve a relatively finer details than strategic plans

STRATEGY

AND RELATED TERMS

STRATEGIC

MANAGEMENT APPROACH

In 1978, Schendel and Hofer created a composite

definition of strategic management

1.STRATEGIC PLANNING
GOAL SETTING: first and

foremost process

STRATEGY FORMULATION:

Strategy is formulated based on the goals.

2. STRATEGY IMPLEMENTATION
ADMINISTRATION: The task of achieving pre-determined goals Involves the revision of strategy

STRATEGIC CONTROL:

Giving managers the feedback of there progress. -ve feedback means new cycle of strategic planning.

LEVELS

OF STRATEGY
CORPORATE LEVEL STRATEGY
Strategy formulated by the top management to oversee the interests and operations of multiline corporations. Decisions as to where should the various resources be allocated.

BUSINESS-STRATEGY
Strategy formulated to meet the goals of a particular business; also called line-of-business strategy Decisions relating to the approach and conduct of the business in market

FUNCTIONAL LEVEL STRATEGY

Strategy formulated by a specific functional area in an effort to carry out business-unit strategy. It completes the hierarchy of strategies.

THE

CORPORATE PORTFOLIO APPROACH

B.C.G.

FIVE-FORCES

CASE STUDY

CONCLUSION