BY MEHUL PRAJAPATI

EXTERNAL MGS.
MISSION STATEMENT •INVESTORS
•CUSTOMERS
•SUPPLIERS
•COMMUNITY

STRATERGIC
GOAL/PLAN
(SENIOR MGT.)
ORG. AS WHOLE INTERNAL MSG.
•MOTIVATION
RESOURCE
ALLOCATION
TACTICAL GOAL/PLAN •GUIDE
(MAJOR DICISION / •RATIONALE
•STANDARD
FUNCTION)
MIDDLE MGT.

OPERATIONAL GOAL/PLAN
(DEPTs. / INDIVIDUALS)
LOWER MGT.
PLANNING IS thinking in advance for future “
what is to be done,how it is to be done,who will do
it,when & where future activites to be done ?

Planning is the bridge between present and

future.

Planning is decreasing fear, uncertainty,

problem, assumption and risk of the future.

Planning is making and using of

assumption,selection and relation of facts in the
visualisation and formalisation of the future
activity to achieve GOAL of organization. 4
PROCESS OF PLANNING
IDENTIFICATION OF
PROBLEM

PERCEPTION OF OPPORTUNITY

SPECIFIC OBJECTIVES

PLANNING PREMISES

IMPLEMENTATION/EVALUATION/FEEDBACK OF PLAN

5
 PLANNING PROCESS (CON’T)

INITIATES ( OPINION / THOUGHT / BELIEVES / FEEDBACK )

DEVELOP ( NO. OF PEOPLE , NO. OF OTHER RESOURCES , BUDGET)

PLAN & ACTION ( TO MAKE PLAN ON PAPER )

PLAN OF ACTION ( IMPLEMENTATION OF PLAN )

DEVELOP STEPS FOR PLAN & CONDITION FOR GOAL ( P.E.S.T.)

REVIEW ( LEADERSHIP EXTREAM / FINANCIAL POSITION etc.)

DEVELOP TO EXECUTE

EXECUTE
EXAMPLE OF PLANNING :
THE FIRM WHICH PLANNED TO INVEST MONEY IN THE CHEMICAL INDUSTRY,
MAY SET AN OBJECTIVE BECOMING NO.1 IN THAT INDUSTRY IN 4 YEAR.

FUTURE
DIRECTION
E
IV P
CLEAR
C T GA
JE UR
E
OB FU
T DIRECTION
E
OV CHANNELISATI
M
RE
ON OF
PRESENT
PRESENT DIRECTION
DIRECTION RESOURCES
CLARITY
ABSENCE OF ABOUT FUTURE
FOCUS CLARITY OF
ABSENCE OF DIRECTION
CLARITY
WRONG
DIRECTION
RESOURCES
WASTAGE

7
FORECASTING(PLANNING) TECHNIQUE
 MANAGEMENT BY OBJECTIVES
O is a method where by manager s and employees defined goals for every
artment ,project,person and use them to monitor subsequent performance.

Step : 1 SET GOAL Step : 2 Develop Action Plan

• Corporate
Strategic Goal
•Departmental goals Action Plan
•Individual goals

Step : 3
Review progress Review
progress

Take Corrective
Action

Appraisal Performance
MOST OF MANAGER THINKS MBO IS EFFECTIVE MANAGEMENT TOOL.
MANAGERS BELIEVE THEY ARE BETTER ORIENTED TOWARDS THE GOAL
WHEN MBO IS USED.
IN RECENT YEARS,THE U.S.A. CONGRESS REQUIRED THAT FEDERAL
AGENCIES USE A TYPE OF MBO SYSTEM TO FOCUS ON GOVT. EMPLOYEES
ON ACHIEVING SPECIFIC OUTCOMES.
MBO ACHIEVES GOALS WHEN USED PROPERLY,BUT PROBLEM ARISES
BECAUSE OF USING IMPROPERLY.

Benefits of Problems with M.B.O.

M.B.O.
Mgr. & employees efforts are
focus on activities that will lead to
goal attainment.
Performance can be improved at
all company levels.
Employees are motivated.
Individual goal = departmenal
goal
Departmental goal =
organizational goal.
Constant change OLD MBO taking
CREATIVITY.
Poor relationship between employee-
employer will reduce MBO effectiveness.
Strategic goal may be displaced by
operational goal.
Mechanistic org. and values that
discourage participation can harm the
MBO process.
Too much paper work saps MBO energy.
How to defined stratergy
External
environmen Identifying
t: factors :
•National •Opportunity
•Global •Threats
Impleme
ntation :
Formulat •Leadershi
Evaluated Defined e: p
current : new : •Corporat •Culture
•Misson SWOT •Mission e •Structure
•Goal •Goal •Business •Human
•Strategies •strategies •Functiona
resource
l
•Information
Internal
•Control
environment
system
: Identifying
•Core factors :
competence •Strengths
•Synergy •Weaknesses
•Value
 SWOT Analysis Framework

N Environmental scan

Internal External

Strengths Weaknesses Opportunities Threats

SWOT Matrix
SWOT MATRIX

Strengths Opportunit Suppliers

y Buyers
Competitors

Weaknesses THREATS

Internal External Policy Maker

SWOT / TOWS MATRIX

Strengths Weaknesse
s

Opportunity S-O Strategies W-O Strategies

Threats S-T Strategies W-T Strategies

 POLITICAL FACTORS :
Tax policy
Employment laws
Environment regulations
Trade restriction & tariff
Political stability
SOCIAL FACTORS :
Health consciousness
Population growth rates
Age distribution
Career attitudes
Emphasis on safety
ECONOMICAL FACTORS :
Economic growth
Interest rates
Exchange rates
Inflation rates
TECHNOLOGICAL
FACTORS :
R&D activities
Automation
Technology incentives
Rate of technological changes
 LEGAL FACTORS :

Growth
Stability
Tax policy
Administration
Governing body (Lagislatives) ENVIRONMENT FACTORS :
Rules & Regulations
Customers
Competitors
Suppliers
Labor market
Globalization
CULTURAL FACTORS : Working conditions

Religion
Social Background
 civilization
Ethnicity
way of life
 BCG (BOSTON CONSULTING GROUP) MATRIX
BCG MATRIX helps managers to develop better understanding of how different
Strategies business units contributes to the overall organization.

BCG Matrix provides a framework for evaluating the relative performance of business
In which a diversified organization operates.

HIGH
M
A STARS QUESTION
R MARK
K
E
T
G
R CASH COW DOGS
O
LOW

W
T
H
HIGH LOW
R
RELATIVE MARKET RATE