Planning & Forecasting

The basic functions of management are commonly identified as posdcorb.

Of these planning is said to have primacy to come first.The general who wins the battle makes many calculation in the battle is fought. The general who losses the battle makes a few

calculations before hand. It is by attention to this point that you can see who is likely to win or loose.

Planning provides a method of identifying objectives and designing a sequence of programs and activities to achieve these objectives.

Amos and sarchet define planning simply as “Deciding in advance what to do, how to do it, when to do it and who

is to do it.From this definition planning must obviously precede doing.

THE PLANNING/DECISSION MAKING PROCESS There is a basic,logical method for solving problems that may

be called,depending on the application, the planning process, the decission making process, or the scientific method.

A problem cannot be solved until it is recognized, when workers go on strike the existence of a problem will be obvious. On the other hand Chronic (perennial) Problems or opportunities often go unrecogonised.

Good example from U.S American automobile manufactureres, for example did not realize that they had a quality problem until the japanese recognized better quality as an opportunity.

united states lost billion of dollars in markets as a result.

Planning

Identify Objectives Design Sequence of Programs, activities

on how to achieve the objectives

The Foundation for Planning Vision, Purpose, Mission

Proverb tells,

“Where there is no vision, the people perish”

A clear vision of the basic purpose or mission for which it exists is essential to the long-term success of any enterprise.

In day today dynamic economy, however the basic mission of the organization must be communicated clearly and repeatedly to the many managers and professionals whose actions determine whether these purposes are indeed achieved.

Strategic Planning

Business Portfolio Matrix      

       

Market MARKET SHARE    

       

  SMALL Large  

       

Fast Growth Question Marks Stars  

Slow Growth Dogs Cash cows  

Importance of Planning

Minimise risk and uncertanity

By providing a more rational, fact based procedure for making decisions, planning allows managers and organisations to minimise risk and uncertainity.

In dynamic society such as ours, conditions alter rapidly, planning helps managers to cope with and prepare for the changing environment

Planning doesn’t deal with future decisions, but with the futurity of present decisions.

It is just like going out without an umbrella in a cloudy weather.

Planning

Leads to success

Planning does not guarantee success, but studies have shown that, often things being equal, companies which plan not only outperform the nonplanners but also outperform their own past results.

Planning

This may be because when a business man’s actions are not random or adhoc, arising as mere reaction to the market place,

I.e when his actions are planned, he definitely does better.

Importance of planning

Planning leads to success by doing beyond mere adaptation to market fluctuations. It proacts.. It involves an attempt to shape the environment on the belief that business is not just the creation of environment but its creator as well.

Importance of planning

Focusses attention on the organisations’s Goals

Planning helps the manager to focus attention on the organisation’s goals and activites.

This makes it easier to apply and coordinate the resources of the organisation more efficiently.

Facilitate control

In planning the manager sets goals and develops plans to accomplish these goals. These goals and plans then become standards or benchmarks against which performance can be measured.

Forms of planning There are many forms and styles of planning, and

planning practices are likely to vary from organisation to organisation.

Strategic planning: Involves deciding what the major goals of the entire

organisation will be and what policies will guide the organisation in its pursuit of these goals.

It deals with questions such as what business should the organisation be in a decade from now?

Forms of planning

By ansering such questions organisation relies heavily on external information on data collected from outside the organisation, such as market analyses, estimates of costs technological developments and so on.

Forms of planning

TACTICAL PLANNING: Involves deciding specifically how the

resources of the organisation will be used to help the orgstn achieve its strategic goals.

It deals with questions such as what should the levels of our operations be a year from now ? How should we adjust our marketing strategy? What are our short term fincancial and personnel needs ?

Recognize problem

or opportunity

Mission/Strategy

Define Problem

Gather Information Formulate Value

Develop Alternatives

Evaluate Alternatives

Implement Best Alternative

Strategic Management

Base Technologies Key Technologies Pacing Technologies

Key Result Areas

Market Share

Innovation

Productivity

Physical and Financial Resources

Manager Performance and Dev.

Worker Performance and attitude

Profitability

Social Responsibility