BY MEHUL PRAJAPATI

GOAL & PLAN

MISSION STATEMENT

EXTERNAL MGS. INVESTORS CUSTOMERS SUPPLIERS COMMUNITY

STRATERGIC GOAL/PLAN (SENIOR MGT.) ORG. AS WHOLE

INTERNAL MSG.
MOTIVATION RESOURCE ALLOCATION GUIDE RATIONALE STANDARD

TACTICAL GOAL/PLAN (MAJOR DICISION / 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 Planning

is the bridge between present and future.

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.
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PROCESS OF PLANNING
IDENTIFICATION OF PROBLEM

PERCEPTION OF OPPORTUNITY SPECIFIC OBJECTIVES

PLANNING PREMISES
IMPLEMENTATION/EVALUATION/FEEDBACK OF PLAN

PLANNING PROCESS (CONT)

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

PRESENT DIRECTION PRESENT DIRECTION ABSENCE OF FOCUS ABSENCE OF CLARITY WRONG DIRECTION RESOURCES WASTAGE

CLEAR DIRECTION CHANNELISATI ON OF RESOURCES CLARITY ABOUT FUTURE CLARITY OF DIRECTION

FORECASTING(PLANNING) TECHNIQUE

MANAGEMENT BY OBJECTIVES
MBO is a method where by manager s and employees defined goals for every department ,project,person and use them to monitor subsequent performance.
Step : 1 SET GOAL Corporate Strategic
Goal Departmental goals Individual goals

Step : 2 Develop Action Plan Action Plan 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 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.

Problems with M.B.O.

Constant change OLD MBO taking CREATIVITY. Poor relationship between employeeemployer 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 environment : National Global Identifying factors : Opportunity Threats
Formulate :

Implemen tation :
Corporat e Business
Functional

Evaluated current : Misson Goal Strategies

Defined new :

SWOT

Mission Goal strategies

Leadershi p Culture Structure Human resource

Information

Internal environment : Core competence Synergy Value creation

Identifying factors : Strengths Weaknesses

Control system

SWOT Analysis Framework

Environmental scan

Internal

External

Strengths

Weaknesses

Opportunities

Threats

SWOT Matrix

SWOT MATRIX

Strengths

Opportunity

Suppliers Buyers Competitors

Weaknesses

THREATS

Internal

External

Policy Maker

SWOT / TOWS MATRIX

Strengths Weaknesses

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

ECONOMICAL FACTORS :
Economic growth Interest rates Exchange rates Inflation rates

SOCIAL FACTORS :
Health consciousness Population growth rates Age distribution Career attitudes Emphasis on safety

TECHNOLOGICAL FACTORS :
R&D activities Automation Technology incentives Rate of technological changes

LEGAL FACTORS :
Growth Stability Tax policy Administration Governing body (Lagislatives) Rules & Regulations

ENVIRONMENT FACTORS :
Customers Competitors Suppliers Labor market Globalization Working conditions

CULTURAL FACTORS :
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. M A R KE T G R O W T H R HIGH

STARS

QUESTION MARK

CASH COW LOW

DOGS

HIGH

LOW RELATIVE MARKET RATE