The Planning Process

GOAL SETTING Identification and formulation of objectives

Reactive Planning Revision of goals and plans

DEVELOPING PLANS Choices between alternative plans

IMPLEMENTATION Execution of the plan

Steps in lanning
Being aware of challenges Market, Customer s wants, Competition, Own strengths & weakness Setting Goals/ Objectives What to accomplish & when Planning premises Identifying alternatives Internal & external Environment/conditions

Budgeting (Numberizing Plans) e.g., Sales budget Operational Expense budget, Capital expenditure budget

Formulating Supporting plans

Comparing & choosing an alternative Decision making

e.g., plan to buy Equipment, recruit & train Employees, develop product etc

The lanning rocess

Planning may be seen as the identification and formulation of the objectives of a business (Goal Setting) Determining Planning Premises Analyzing the data (Identifying Alternatives) Evaluation & Selection Implementation & Review

Successful lanning rocess

Everyone participates Board and staff educated about planning Board and staff explore new ideas Board takes advantages of opportunities Necessary resources available

Making lanning Effective

 Linked to Long term objectives  Consistency  Everyone participates  Feasible  Flexible  Simple  Top Management Support