EXTERNAL MGS.
MISSION STATEMENT •INVESTORS
•CUSTOMERS
•SUPPLIERS
•COMMUNITY
STRATERGIC
GOAL/PLAN
(SENIOR MGT.)
ORG. AS WHOLE INTERNAL MSG.
•MOTIVATION
RESOURCE
ALLOCATION
TACTICAL GOAL/PLAN •GUIDE
(MAJOR DICISION / •RATIONALE
•STANDARD
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 ?
PERCEPTION OF OPPORTUNITY
SPECIFIC OBJECTIVES
PLANNING PREMISES
IMPLEMENTATION/EVALUATION/FEEDBACK OF PLAN
5
PLANNING PROCESS (CON’T)
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
E
IV P
CLEAR
C T GA
JE UR
E
OB FU
T DIRECTION
E
OV CHANNELISATI
M
RE
ON OF
PRESENT
PRESENT DIRECTION
DIRECTION RESOURCES
CLARITY
ABSENCE OF ABOUT FUTURE
FOCUS CLARITY OF
ABSENCE OF DIRECTION
CLARITY
WRONG
DIRECTION
RESOURCES
WASTAGE
7
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 : 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.
N Environmental scan
Internal External
SWOT Matrix
SWOT MATRIX
Weaknesses THREATS
Strengths Weaknesse
s
Growth
Stability
Tax policy
Administration
Governing body (Lagislatives) ENVIRONMENT FACTORS :
Rules & Regulations
Customers
Competitors
Suppliers
Labor market
Globalization
CULTURAL FACTORS : Working conditions
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.
HIGH
M
A STARS QUESTION
R MARK
K
E
T
G
R CASH COW DOGS
O
LOW
W
T
H
HIGH LOW
R
RELATIVE MARKET RATE