ASSIGNMENT NO 1

Name ZAREEN AAMIR

Ic Number / Matric Number / Passport Number 2022.9.MA01.0014
Course/ Program MASTER IN BUSINESS ADMINISTRATION
(ENGLISH)
Subject & Code of Subject MANAGERIAL ECONOMICS (MBME 130)
Lecturer’s Name MUHAMAD FAIROS B MOHAMAD SHAH

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Table of Contents
1. INTRODUCTION TO PLANNING....................................................................................................5
2. BACKGROUND OF STUDY............................................................................................................. 5
2.1.IMPORTANCE OF PLANNING............................................................................................................. 6
3. BODY OF REPORT.......................................................................................................................... 6
3.1. MULTIPLE TYPES & BENIFITS OF PLANNING............................................................................6
a. STRATEGIC PLANNING............................................................................................................6
b. OPERATIONAL PLANNING.......................................................................................................7
c. LONG-TERM PLANNING........................................................................................................... 7
d. SHORT-TERM PLANNING.........................................................................................................7
e. DIRECTIONAL PLANNING........................................................................................................7
f. SPECIFIC PLANNING.................................................................................................................7
g. SINGLE USE PLANNING............................................................................................................ 7
h. STANDING PLANNING..............................................................................................................8
3.2. KEY ELEMENTS OF PLANNING....................................................................................................8
a FORECASTING............................................................................................................................... 8
b. DEFINING OBJECTIVES................................................................................................................8
c. OUTLINING POLICIES................................................................................................................... 8
d. DEVELOPING PROGRAMS............................................................................................................ 8
e. CREATING STRATEGIES............................................................................................................... 8
f. SCHEDULING................................................................................................................................ 8
g. OUTLINING PROCEDURES........................................................................................................... 9
h. SETTING RULES............................................................................................................................ 9
i.BUDGETING................................................................................................................................... 9
4. FINDINGS AND DISCUSSION.........................................................................................................9
5. RECOMMETION AND CONCLUSION..........................................................................................12
6. APPENDICES................................................................................................................................. 12
7. REFERENCE.................................................................................................................................. 12

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Q.1  Explain the functions and benefits on each plan to the organization.

Explanation

1. INTRODUCTION TO PLANNING
All management is built upon planning. Anyone can better appreciate the plans he deals in every day if he
knows what planning is, how it works, and why it's vital. And then accordingly develop own plans and be
successful in a management position by having a solid understanding of planning. Lets explore different
aspects of planning :-

2. BACKGROUND OF STUDY

Knowing about planning and the definition of this business phrase will allow anyone to establish effective
strategies for a firm. A plan serves as a roadmap for the future. It entails identifying objectives and
selecting the most effective path to reach them. A thorough plan offers a foundation for success. The
following is explained via comprehensive plans:

 What is completed

 Whom does it?

 How they act?

 When they act?

 Why they act?

 How it might affect the plan?

 How the group may handle problems that might affect the plan?

2.1. IMPORTANCE OF PLANNING

Some of few reasons depicting the importance of planning are as follow: -

 It establishes the foundation for all business operations, including hiring, planning, and leading.

 It lays out expectations for the company in simple terms so that workers may concentrate on
achieving the goal.

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  It aids in bringing teams together behind a single goal and programme.

 It increases employee motivation by providing them with a goal and a clear roadmap for
accomplishment.

 It facilitates more efficient resource management for businesses.

 By reducing labour, resource, and equipment waste, it helps firms save money.

 By explicitly outlining their responsibilities and schedules, it assists firms in coordinating their
departments.

 It establishes benchmarks for evaluating performance and advancement so management may assess
success.

 It offers a structure for making wise decisions.

 It foresees dangers and suggests solutions to lessen their effects so that workers can respond
promptly if problems arise.

 It forecasts when a change will be necessary and provides a strategy for handling changes.

3. BODY OF REPORT

Detail discussion on exploring different aspects is incomplete without understanding different varients
of planning.

3.1. MULTIPLE TYPES & BENIFITS OF PLANNING

Depending on their projects, corporate cultures, and workforce, businesses may use a variety of
planning techniques. To identify the best strategy for their needs, firms can benefit from experimenting
with several planning methods. Several planning types are frequently combined in business planning.
The most typical methods of planning are as follows:
a. STRATEGIC PLANNING
Setting goals, policies, and tactics to achieve them are all part of strategic planning. This type of
planning provides a corporation with future direction. Within a company, strategic planning is
handled by the executive team. They take into account the company's skills and position in the
market. They develop solutions to address their concerns if they find flaws or problems that could
hinder the company's ability to accomplish its goals. Long- or medium-term planning is typically
strategic planning.

b. OPERATIONAL PLANNING
Making plans for the near future of the company is a part of operational planning. Operational plans
are made by lower-level management members like foremen and unit supervisors. These plans
cover brief intervals that begin in the present and last for one week to one year. The most detailed

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plans, which outline how to carry out duties effectively, are operational plans. They keep firms
operating efficiently. Functional business sectors including finance, marketing, and production are
frequently divided into operational plans by businesses.

c. LONG-TERM PLANNING
Making preparations for the company's future over the long term is a component of long-range
planning. Typically, businesses create long-term strategies that span five to 15 years. Long-range
planning frequently takes into account resource allocation over the long term as well as technical
and competitive advantage measures. Businesses have plenty of time to establish plans and
implement them thanks to long-term planning. Companies may frequently alter their long-term
strategies to take into account changes in their industry and business.
d. SHORT-TERM PLANNING
Planning for the short term entails making preparations for the near future. Often, plans for the
next two years or fewer are the emphasis of short-term planning. These proposals call for
modifying the company's current operations using its existing resources. An example of short-
term planning is deciding how to train a new group of hires. Businesses can swiftly evaluate
their success because they act on short-term planning.
e. DIRECTIONAL PLANNING
Plans that provide general parameters are flexible plans known as directional plans. In a
dynamic environment where management must be adaptable to deal with unforeseen
developments, such plans are preferred.
f. SPECIFIC PLANNING
Specific plans are those that are unambiguously stated and devoid of any possibility for
interpretation. Such plans must have clearly stated goals and cannot be vague.
g. SINGLE USE PLANNING
Single-use designs, as their name suggests, are appropriate for a single project. They lay out the
steps staff members can take to accomplish a particular objective. They also outline the projects
that are covered by the plan's budgets, activity schedule, and programme of activities.
Employees disregard the strategy after achieving the ultimate objective. Specific planning is
another name for the process of creating single-use plans.
h. STANDING PLANNING
Standing plans are created by businesses for many purposes. A fashion label, for instance, might
have a set strategy for producing fresh clothing pieces. Although the garments are different, the
company may have a uniform strategy to their design, development, and delivery. Standing
plans often comprise goals, statements of policy, actions, techniques, rules, and strategies.

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 Executives can save time by developing standing plans because they are reusable. Standing
plans are sometimes known as regular plans.

3.2. KEY ELEMENTS OF PLANNING

The major components of a thorough planning process are as follows:

a. FORECASTING

Forecasting entails making future predictions. Teams can identify potential hazards and develop
strategies to lessen their effects by projecting future events. Also, it aids groups in maximising
advantageous circumstances. Teams can work more effectively by reducing uncertainty with the
aid of forecasting.

b. DEFINING OBJECTIVES

Teams can better comprehend their goals by setting objectives. Realistic and precise goals are
the best. Teams' actions have greater meaning when they are aware of their goals. Employee
engagement and motivation are improved by clearly articulating objectives.

c. OUTLINING POLICIES

By outlining policies, those involved in carrying out the plan are provided with a basic
framework for making and carrying out decisions. The rules are in effect for the entire time the
plan is in place. To ensure that everyone using the policies understands them, it is crucial to use
clear communication.

d. DEVELOPING PROGRAMS

Programs are the actions that staff members perform to accomplish goals. The events that must
happen in what order is described in well-developed programmes in order for the team to
succeed. When workers know what to do and when to do it, they can maintain their attention.

e. CREATING STRATEGIES

Strategies describe how a company could acquire a competitive edge in general, at a high level.
Businesses may find success in a particular market or with a particular good or service by using
certain strategies. The achievement of the company's objectives might be aided by developing
successful strategies.

f. SCHEDULING

Setting times for the plan's actions is known as scheduling. Employees can better comprehend
the delivery deadline with clear scheduling. To keep a project on track, a good plan should also
schedule progress meetings and component deadlines.

g. OUTLINING PROCEDURES

Procedures serve as a roadmap for future activities. Employees can do duties in the most

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 efficient order and manner for the company with the aid of procedures. Processes describe how
to carry out routine duties in a firm.

h. SETTING RULES

The expectations of employees are outlined in the rules. Employees who are given clear rules
are more likely to follow them and refrain from bad behaviour. The simplest kind of strategy is
frequently one with rules. They may be modified over time, although managers typically keep
them fairly constant throughout the course of the company.

i. BUDGETING

The plan's resources are allotted through budgeting. Budgets frequently involve money. They
may also include other numerical terms, such as the quantity of labour hours, machine hours, or
product units a plan calls for. By reducing waste and deficits, a clear budget helps organisations
manage their resources over time.

4. FINDINGS AND DISCUSSION

Both small and medium-sized firms and huge organizations with complicated structures need to plan.
Here are 10 strong arguments to support this:

I. It Helps to Set the Right Goals

II. It Sets Objectives and Standards for Controlling

III. It Reduces Uncertainty

IV. It Eliminates Overlapping of Wasteful Activities

V. It Ensures Efficient use of Resources

VI. It Promotes Innovation

VII. It Improves Decision Making

VIII. It Boosts Motivation and Team Spirit

IX. It Helps to Earn Credibility and Trust of Stakeholders

X. It Gives a Competitive Edge and Allows Strategic Positioning

There are many tools to assit in planning such as SWOT analysis, resource analysis ,PESTLE Analysis,
environmental scanning, VRIO Framework etc. Sample work of SWOT analysis for planning any
company is depicted in table below :-

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 SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Things your company does well  Things your company lacks

Qualities that separate you from your competitors  Things your competitors can do better than you

Internal resources such as skilled staff  Resource limitations

Tangible assets such as intellectual property, capital,  Unclear Unique Selling Point/ market
proprietary technology, etc. positioning

OPPORTUNITIES THREATS

 Undeserved markets for specific products  Emerging competitors

 Few competitors in your area  Changing regulatory environment

 Emerging need for your products or services  Negative press/ media coverage

 Press/ media coverage of your company  Changing customer attitudes to your company

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Inspite of mentioning the clear advantages of establishing proper planning practices , its fact that still many
professionals fail to get benefits from planning . The reason may be anyone or some of them :-
o They underestimate the importance of planning.

o They lack time for planning

o They don’t have the necessary knowledge
o They don’t have the necessary knowledge

o They lack self-discipline

o They lack meaningful objectives and goals

5. RECOMMETION AND CONCLUSION

Think about the following 5 elements that impact the efficacy of planning if anyone wants to realize the
value of planning in management and all of its advantages.

I. Engagement

II. Data, not assumptions

III. Communication

IV. Culture of growth

V. Commitment to change

A formal yet practical document directing goals and day-to-day operations for your organisation can be
produced with the aid of effective strategic planning. The benefits of planning in business management
totally justify the work and expertise requirements, and they can eventually help you improve as a
manager. Planning in particular will assist you in many ways, including goal setting, uncertainty
reduction, efficient resource use of both human and material resources, employee engagement, and many
more.

In order to achieve with good planning, you should be willing to work on your personal traits,
professional abilities, and organizational culture. Not least of all, you need to be open to change because
you won't achieve different outcomes until you attempt alternative strategies.

6. APPENDICES

There is nothing to mention in it as everything is explained in document itself.

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7. REFERENCE

i. Covey, S. R. (1990). The Seven Habits of Highly Effective People. New York: Simon & Schuster.

me

ii. Business Management Ideas. Importance of Planning in Management. URL:

https://www.businessmanagementideas.com/planning/importance-ofplanning/importance-of-
planning-in-management/19286

iii. Career Guide. Organizational Skills: How to Develop and Use Them. URL:

https://www.indeed.com/career-advice/career-development/organizational-skills

iv. https://www.ringcentral.com/gb/en/blog/planning-in-management/

v. https://www.skills-up.eu/wp-content/uploads/2021/08/Planning-and-Organizational-Skills.pdf

vi. Duszynski, M. (June 5, 2020). Organizational Skills: Definition & Examples for Your Resume.

URL: https://zety.com/blog/organizational-skills

vii. GroupMap. Urgent Important Matrix. URL: https://www.groupmap.com/maptemplates/urgent-

important-matrix/

viii. Office Dynamics International. 9 Ways to Improve Your Organization Skills for Administrative

Assistant. URL: https://officedynamics.com/9-ways-to-improve-yourorganization-skills-for-

administrative-assistants

ix. Proctor, C. Organizational Skills to Include on Your Resume (Examples). URL:

https://www.zipjob.com/blog/organizational-skills-resume/

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