PLANNING-Planning (also called forethought) is the process of thinking about and organizing

the activities required to achieve a desired goal. It involves the creation and maintenance of a
plan, such as psychological aspects that require conceptual skills

ORGANIZING- TO arrange or plan

STAFFING-A group of people who work for an organization or business.

DIRECTING- TO cause(someone or something) to move or point in a particular.

CONTROLINNG- TO Cause someone to do what you want..

Basic Steps in Business Planning

1. Defined the business idea.

2. Establish goals and objectives.
3. Evaluate the ideas, goals, and objectives.
4. Forecast cash needs.
5. Identify sources of funds.
6. Write a business plan.
OTHER TYPES OF PLAN;

1. STANDING PLANS- Serve as guidelines to managerial action.

2. SINGLE-USE PLANS – Designed for a specific purpose or period.

3. LONG-RANGE PLANS- The strategic plans of the organization.

4. INTERMEDIATE PLANS- Follow one long-range plans are formulated.

5. SHORT-RANGE PLANS- provide the guidelines for day to day action in the organization.

6. MARKETING PLANS- To increase their present market share and develop new product.

7. PRODUCTION PLANS- Producing the desired amount of goods demanded at the market place.

8. FINANCIAL PLANS- A quantitative basis for decision making and control.

9. MANPOWER PLANS- Systematic way of determining the types personnel needed in the long and short
range of an organizing.

10. STRATEGIC PLANS- Determining the major goals of the entire organization and the policies to
achievement of these goals.

11. TACTICAL PLANS- Deals with the determination of the term- specific utilization of the resources of
the organization in achieving its strategic goals.

12. FUCTIONAL PLANS- Often classified by function or use.

OPERATIONAL VERSUS STRATEGIC PLANS

*STRATEGIC PLANNING- The process which sets forth organizational objectives to be achieve, strategies
and policies needed to reach those objectives, and short-range plans to make sure that the strategies
are successfully implemented

*OPERATIONAL OR TACTICAL PLANNING- Is short-range planning and concentrate on the formation of functional
plans.

DECISION MAKING- The process of choosing a specific procedure or course of action from among several
alternatives.

*Marginal analysis –figure out how much more output will result if one more variable is added.

* Financial analysis- Estimating the profitable of and investment, calculating the payback period, and analyzing
the cash inflows and outflows.

*Break-even analysis- Enable a manager to see the effects of alternative available base on price, fixed cost, and
variable cost per unit.

*Ration analysis- The interpretation of accounting information.

OPERATIONAL RESEACH TECHNIQUES

1. Waiting-line Method- Mathematical techniques for balancing waiting lines and services.

2. Linear Programming- Decision involving the allocation of resource or limited resources to reach a
particular objective such as, least cost, highest margin, and so on
3. Game Theory – Selecting the best strategy, taking into consideration one’s competitors.
4. Simulation- Involves the building of a model that present a real or an existing system.

THE DECISION MAKING ENVIRONMENT

1. Strategic- Level manager determined long term strategies and set corporate objectives and
policy consistent with these objectives.
2. Tactical – level manager are charged with the responsibility of implementing the objectives
and policies set forth at the strategic level of management.
3. Operational – level manager complete specific task as directed by tactical-level managers.

THE DECISION MAKING PROCESS

STEP 1- SET OBJECTIVES STEP 4. Gather appropriate information.

STEP 2- IDENTIFY CONSTRAINTS STEP 5. Evaluate alternatives.

STEP 3- IDENTIFY ALTERNATIVES STEP 6. Choose the acceptable alternative

PLANNING TECHNIQUES AND TOOLS;

 Forecasting- This is an attempt to foretell or predict future trends, or condition from known data and
prepare for the expected change in business.
 Break-even analysis- dealing with control functions .
 Scheduling –use for planning time for various activities is an organization.
- A number of scheduling techniques are available, ranging from simple to complex

Expected time =

 Management by objectives- An approach to management designed at cross purpose, or indeed, for

no purpose at all.
 Lack of real commitment in planning.
 Interchanging planning studies with plans.
 Failure to develop and implement sound strategies.
 Lack of meaningful of objective and goals.
 Tendency to underestimate the importance of planning premises.
 Failure to see the scope of plans.
 Failure to see planning as a rational process.
 Too much reliance on experience.
 Failure to use the principles of limiting factor.
 Lack of top management support .
 Lack of clear delegation
 Lack of adequate control techniques and information.

Network Analysis- Quantitative technique use for scheduling

Program Evaluation Review Technique (PERT)

Critical Path Method (CPM)

These techniques help to plan complicated and extensive project in which co-ordination essential fo cases

Basic steps in developing (PERT)

1. Identify and list major task in a project.

2. Determined the order in which these task must be carried out, in term of which one comes first, second, and so on
and which activities can be carried out simultaneously.
3. Figure out a pessimistic, probable or must likely, and optimistic times for each activity or task.
4. Estimate the expected completion time by averaging the above times
5. Draw PERT network showing the sequence and times.