By Mehul Prajapati

BY MEHUL PRAJAPATI

MISSION STATEMENT

STRATERGIC GOAL/PLAN (SENIOR MGT.) ORG. AS WHOLE TACTICAL GOAL/PLAN (MAJOR DICISION / FUNCTION) MIDDLE MGT.

OPERATIONAL GOAL/PLAN (DEPTs. / INDIVIDUALS) LOWER MGT.

EXTERNAL MGS. •INVESTORS •CUSTOMERS •SUPPLIERS •COMMUNITY

INTERNAL MSG. •MOTIVATION RESOURCE ALLOCATION •GUIDE •RATIONALE •STANDARD

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

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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.

JE OB

IV T C

M RE

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

E OV

FUTURE DIRECTION

E

T FU

E UR

P GA

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

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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 •Individual goals

Action Plan

Review progress

Take Corrective Action

Appraisal Performance

Step : 3 Review progress

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 environmen t: •National •Global

Evaluated current : •Misson •Goal •Strategies

Identifying factors : •Opportunity •Threats

SWOT

Internal environment : •Core competence •Synergy •Value

Defined new :

•Mission •Goal •strategies

Identifying factors : •Strengths •Weaknesses

Formulat e:

•Corporat e •Business •Functiona l

Impleme ntation : •Leadershi p •Culture •Structure •Human resource

•Information

•Control system

SWOT Analysis Framework

N

Environmental scan

Internal

Strengths

External

Weaknesses

Opportunities

SWOT Matrix

Threats

SWOT MATRIX

Strengths Opportunit y Weaknesses

Internal

Suppliers Buyers Competitors

THREATS

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) Rules & Regulations

CULTURAL FACTORS : Religion Social Background  civilization Ethnicity way of life

ENVIRONMENT FACTORS : Customers Competitors Suppliers Labor market Globalization Working conditions

BCG (BOSTON CONSULTING GROUP) MATRIX BCG MATRIX helps managers to develop better understanding of how different Strategies business units contributes to the overall organization.

STARS

QUESTION MARK

CASH COW

DOGS

LOW

M A R K E T G R O W T H R

HIGH

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

HIGH

LOW

RELATIVE MARKET RATE