TYPES OF

PLANS
OBJECTIVE
By the end of this session students will be able to :-
 List and state types of planning
 Define strategic planning and its components
 Define mission statement
 Determine SWOT analysis
 List advantage and limitation of SWOT analysis
 Differentiate goal and objective
 Define tactical plans
 Define operational plan
TYPES OF PLANS

 Plans can be classified based on:

1. Repetitiveness
2. Time dimension, and
3. Scope/breadth dimension
CLASSIFICATION OF PLANS BASED ON
SCOPE
1. Strategic Planning
2. Tactical Planning
3. Operational Planning
STRATEGIC PLANS

 Strategic plans are made to achieve the overall organizational

goals. They achieve strategic goals through effective
allocation of resources over different functional/ product
areas.
 They match the organizational strengths and weaknesses
with the environmental opportunities and threats.
 They are comprehensive and general in nature.
CONT

 They are made for all functional areas of business.

 They are made by the top-level managers in consultation
with board members and middle- level managers and
generally relate to a period of more than 5 years.
CONT
 The questions most commonly answered through
strategic plans are:
(a) What are the ways in which overall goals can be achieved?
(b) How to allocate resources over different areas of the
enterprise?
(c) How to respond to the external environment?
(d) How to coordinate the firm’s internal strengths and
weaknesses with its external environment?
WHY DEVELOP STRATEGIC PLAN?
 To improve performance
 To stimulate forward thinking and clarify future
direction
 To solve major organizational problems
 To survive
 To build teamwork and expertise
 To influence
 To meet requirements
 Its natural way of doing business
TEN KEYS TO SUCCESSFUL STRATEGIC
PLANNING
1. A clear and comprehensive grasp of external
opportunities and challenges.
2. A realistic and comprehensive assessment of the
organization’s strengths and limitations
3. An inclusive Approach
4. Empowered planning committee
5. Involvement of senior leadership
CONT
6. Sharing of responsibility by all
7. Learning from best practices
8. Clear priorities and an implementation plan
9. Patience
10. A commitment to change
STRATEGIC PLANNING PROCESS
 Strategic planning process include:
Define the mission.
Conduct a situation or, environmental scanning:
SWOT analysis( Strengths, weaknesses,
opportunities and threats).
Set goals and objectives.
Develop related strategies (tactical and
operational).
Monitor the plan
MISSION STATEMENT
 A mission statement is your overall, lasting formulation of
why your company exists and what it hopes to be. It
includes the goals you want to accomplish and an outline
of how you intend to fulfill them.
 A strategic plan needs a clear statement of your company’s
purpose, its reason for existing in the first place.
 Why did you form this company, and what are you hoping
to accomplish by developing it and offering its products or
services to the public?
MISSION STATEMENT CRITERIA
 Establish boundaries:
The “bounds” of the service delivered in
reasonable terms (why the organization exists)
 Act to motivate management, employees and others
 all constituencies must have input.
 Short enough to remember and easily communicate.
 Strong enough to inspire.
 Help in the process of evaluation
VISION STATEMENT
 Like mission statements, vision statements help to
describe the organization's purpose. Vision statements
give direction for employee behavior and help provide
inspiration. Strategic plans may require a marketing
strategy, which could include the vision statement to
also help inspire consumers to work with the
organization.
CONT
 A vision statement is a view into the future with hope and
a positive outlook. It describes a company's inspirational,
long-term plan for what they'll be able to accomplish,
who they will help, and how the company will then be
perceived. It's often out of reach for now, but not so far
out of reach as to be unattainable. The vision statement
gives everyone a description of what they're working
towards.
CHARACTERISTICS OF GOOD VISION
STATEMENT
 stakeholder ownership
 Inspires people
 Concrete
 Suggests what people need to do
 Engages everyone ( SHARED!!! )
CONT
 Examples to Consider
 Many companies have vision and mission
statements that don't serve them well. Still, there
are companies with outstanding
statements. LinkedIn is a good example:
 Vision: To create economic opportunity for every
member of the global workforce.
 Mission: To connect the world’s professionals to
make them more productive and successful. 
CONT
 Notice how LinkedIn's vision statement refers to
"every member of the global workforce." That's a
huge goal that won't be accomplished in the near
future. Maybe never. But it is inspiring and makes
employees want to achieve it.
 The mission statement, on the other hand, is
achievable. By connecting professionals, they give
them the contacts they need to make them more
productive and successful.
  
SWOT ANALYSIS
 SWOT is an acronym for Strengths,
Weaknesses, Opportunities and Threats.
 By definition, Strengths (S) and Weaknesses (W)
are considered to be internal factors over which
you have some measure of control.
 Also, by definition, Opportunities (O) and
Threats (T) are considered to be external factors
over which you have essentially no control.
CONT
 it is the foundation for evaluating the internal
potential and limitations and the probable/likely
opportunities and threats from the external
environment.
 It views all positive and negative factors inside and
outside the firm that affect the success.
 A consistent study of the environment in which the
firm operates helps in forecasting/predicting the
changing trends and also helps in including them in
the decision-making process of the organization.
CONT
 Strengths - Strengths are the qualities that enable
us to accomplish the organization’s mission. These
are the basis on which continued success can be
made and continued/sustained.
 Strengths can be either tangible or intangible.
These are what you are well-versed in or what you
have expertise in, the traits and qualities your
employees possess (individually and as a team)
and the distinct features that give your
organization its consistency.
CONT
 Strengths are the beneficial aspects of the
organization or the capabilities of an
organization, which includes human
competencies, process capabilities, financial
resources, products and services, customer
goodwill and brand loyalty. Examples of
organizational strengths are huge financial
resources, broad product line, no debt,
committed employees, etc.
CONT
 Weaknesses - Weaknesses are the qualities that
prevent us from accomplishing our mission and
achieving our full potential. These weaknesses
deteriorate influences on the organizational success
and growth. Weaknesses are the factors which do
not meet the standards we feel they should meet.
 Weaknesses in an organization may be depreciating
machinery, insufficient research and development
facilities, narrow product range, poor decision-
making, etc. Weaknesses are controllable.
CONT
 They must be minimized and eliminated. For
instance - to overcome obsolete machinery, new
machinery can be purchased.
 Other examples of organizational weaknesses are
huge debts, high employee turnover, complex
decision making process, narrow product range,
large wastage of raw materials, etc.
CONT
 Opportunities - Opportunities are presented by
the environment within which our organization
operates. These arise when an organization can
take benefit of conditions in its environment to
plan and execute strategies that enable it to
become more profitable. Organizations can gain
competitive advantage by making use of
opportunities.
CONT
 Organization should be careful and recognize
the opportunities and grasp them whenever
they arise. Selecting the targets that will best
serve the clients while getting desired results is
a difficult task. Opportunities may arise from
market, competition, industry/government and
technology. Increasing demand for
telecommunications accompanied by
deregulation is a great opportunity for new
firms to enter telecom sector and compete with
CONT
 Threats - Threats arise when conditions in
external environment jeopardize the reliability
and profitability of the organization’s business.
They compound the vulnerability when they
relate to the weaknesses. Threats are
uncontrollable. When a threat comes, the
stability and survival can be at stake. Examples
of threats are - unrest among employees; ever
changing technology; increasing competition
leading to excess capacity, price wars and
ADVANTAGES OF SWOT ANALYSIS
 SWOT Analysis helps in strategic planning in
following manner.
It
is a source of information for strategic planning.
Builds organization’s strengths.
Reverse its weaknesses.
Maximize its response to opportunities.
Overcome organization’s threats.
CONT
 It helps in identifying core competencies of the
firm.
 It helps in setting of objectives for strategic
planning.
 It helps in knowing past, present and future so
that by using past and current data, future plans
can be chalked out.
SWOT ANALYSIS FRAMEWORK
LIMITATIONS OF SWOT ANALYSIS

 There are certain limitations of SWOT Analysis which

are not in control of management. These include-
 Price increase;
 Inputs/raw materials;
 Government legislation;
 Economic environment;
 Searching a new market for the product which is not
having overseas market due to import restrictions;
etc.
CONT
 Internal limitations may include
Insufficient research and development
facilities;
Faulty products due to poor quality control;
Poor industrial relations;
Lack of skilled and efficient labour; etc
SWOT ANALYSIS TOOLS
 What are the unit’s Strengths? (What makes this
unit good?)
 What are the unit’s Weaknesses? (What does this
unit need work on?)
 What are the unit’s Opportunities? (Opportunities
for improvement in health service and for unit
and personal professional recognition)
 What are the unit’s Threats? (What makes it
difficult to give health service to our clients?)
 KEY MESSAGE
 Build on strengths
 Resolve weakness
 Exploit opportunities
 Avoid threats
GROUND RULES IN SELECTING ISSUES
 Choose no more than five issues.
 select issues that you can affect.
 Donor interests are relevant , but not overriding
 Know agenda & priorities of donors only as an input
into the organization’ decisions
 Each external issue will be mirrored internally.
 Internal capacities are needed for external
effect.Come back to the mission.
 Each strategic issue should relate directly to the
mission statement of the organization
GOALS
 A goal is a specific target, an end result or something
to be desired. It is a major step in achieving the vision
of the organisation.
 In the strategic planning context a goal is a place
where the organisation wants to be, in other words a
destination.
CONT
 For example, a goal for a sporting organisation
might be to have 50 qualified and active coaches.
 An organisation may set several goals that will
outline a path to achieving the vision. The goal of
attaining 50 qualified and active coaches will be
an important step in achieving the vision of
becoming most dynamic, most respected and best
achieved club in the district league.
OBJECTIVE
Objectives define strategies or implementation
steps to attain the identified goals.
Unlike goals,
objectives are specific, measurable, and have a
defined completion date. They are more specific
and outline the “who, what, when, where, and
how” of reaching the goal.
OBJECTIVE MUST BE
 Relevant – directly supports the goal
 Compels the organization into action
 Specific enough so we can quantify and measure the
results
 Simple and easy to understand
 Realistic and attainable
 Conveys responsibility and ownership
 Acceptable to those who must execute
 SMART(specific, measurable, achievable, realistic and
time framed)
CONT
• There is often much confusion between goals and
objectives. Whereas as a goal is a description of a
destination, an objective is a measure of the
progress that is needed to get to the destination.
DIFFERENCE BETWEEN GOALS AND
OBJECTIVES
 Goals are:
 Broad in nature
 Valuable for setting a general direction or vision
 Difficult to measure
 Abstract ideas
 Longer term
 The end result
CONT
 Examples of goals include:
 I want to become known as an expert in business
strategy
 I will commit to my career development and learn
how to increase sales
 I want to be more confident
CONT
 Objectives are:
 Narrow in scope
 Specific steps
 Associated with a schedule and time frame
 The means to the end result
 Easy to measure
 Short term or medium term
CONT
 Examples of objectives include:
 I will speak at five conferences in the next year
 I will read one book about sales strategy every
month
 I will work with a coach to practise my networking
skills by the end of this month
CONT

Why do we need to identify goals and objectives?”

 Plans and actions based on clear goals and

objectives are more likely to succeed in meeting the
community’s needs.
TACTICAL PLANS
 Tactical plans are the means to support and implement
strategic plans. They are made to achieve tactical goals
of the organisation. They are related to departmental
goals of the enterprise. These plans are made by
middle-level managers in consultation with lower-level
managers and normally relate to intermediate period of
1 to 5 years. While strategic plans are general in nature,
these plans are more specific and precise.
CONT
 The important questions answered through tactical
plans are:
 (a) How to deal with changes in competitors’ policies?
 (b) How to deal with changes in the demand for
products?
 (c) How to increase company’s share in the market?
OPERATIONAL PLANS
 Operational plans support the tactical plans.
 They are made to achieve operational goals of the enterprise.
 These plans are highly specific and determine what different
sections of the organisation need to perform
 is most concerned with budgets, quotas and schedules.
 These are refinements of tactical objectives in which
PLANS (STRATEGIC, TACTICAL AND OPERATIONAL)
CLASSIFIED ON THE BASIS OF LEVELS IN THE
ORGANISATION ARE TABULATED AS FOLLOWS:
FORMAL PLANNING
 Formal planning is a systematic process.
 These guidelines provide a general pattern of rational
planning.
 Planning is formal when it is reduced to writing. When the
numbers of actions are large it is good to have a formal
plan since it will help adequate control. ... Formal
planning is aims to determine and objectives of planning.
It is the action that determine in advance what should be
done.
FORMAL PLANNING PROCESS
1. Situation audit or environmental assessmentIt
analyzes the Past, current and future forces that
affect the organization.
Expectation of outside interests such as
government officials, insurance companies and
consumers are sought.
Expectations of inside interests such as
employees are collected.
Environment, demographic, resources, legal,
technological factors should also be considered.
CONT
2. Establish Objectives
Every plan has the primary purpose of helping
the organization succeed through effective
management.
Success is defined as achieving organizational
objectives.
These are performance targets, the end results
that managers seek to achieve.
CONT
 Characteristics of objectives
 Well-defined objectives have several
Characteristics.
 They are:
Specific,
Measurable,
Realistic and challenging,
Defined time period
CONT
3. Involve management and staff
 involving a greater number of managers will result in
better plans and more wide spread acceptance of
objectives.
4. Develop alternatives
 A successful planning process will generate several
options for manages to consider.
 These options are alternative courses of action that
can achieve the same result.
 A viable alternative suggests a proposed course of
CONT
5. Communicate plans
 Planning requires clear and effective
communication at all levels before performance
begins to mirror expectations.
6. Have Implementation and monitoring plan
Thanks!!!