Chapter 2: Planning

Involve Employees in Decision

Input from all levels of a firm is essential for successful planning.

Take Advantage of a Diversity of Views

Diverse views lead to a broader assessment of organizational problems and opportunities.

Encourage Strategic Thinking

Effective strategic thinking can be developed through training and practice.

Demands on the managers time.

Ambiguous and uncertain operating environments.

Resistance to change.

Plain

It prescribe the activities necessary for the organization to realize its goals.

Planning

The process of setting goals and defining them.

Helps to determine what are company's opportunities.

Planning can provide effective utilization of available facilities.

Planning enables company to identify the course of action.

Without planning much will be left out.

Strategic Planning

Focuses on enhancing the competitive position and overall performance.

Level Of Strategic Planning

corporate strategy

Business strategy

Functional strategy

Operating Planning

Determining the day by day to day activities that are necessary to achieve the long term goals of the organization.

Standing Plan

Standing plans are designed to deal with organizational issues or problems that recur frequently.

Policies

Procedures

Rules

Single Use Plan

Developed to address a specific organizational situation.

Programs

Projects

Budget