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1 TABLE OF CONTENTS

• Introduction ……………………………………………… ….3

• Planning as a function on Management …………………..5


2 INTRODUCTION
• Economic system is a complex of activities that must
form the background of management.
• Goods and services that consumers need must be
supplied and the means by which they can purchase
these goods and services must be provided.
3 PLANNING

• Planning is foreseeing future circumstances and


requirements, then, setting objectives, making long and
short term plans and determining the policies to be
followed with standards to be set.
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• It involves making a systematic process for achieving the
organization’s goals.
• In planning, managers receive and store information, monitor
and disseminate the information.
• A manager makes decisions on strategy and allocation of
resources and initiate planned changes
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• A strategy –is a course of action created to achieve a long


– term goal.
• Goals –are the things that the organization strives to
achieve.
• Strategic planning requires a lot of information gathering,
exploring alternatives and emphasizing future implications
of its current decisions.
6 STEPS IN PLANNING

• 1. Define the organization‘s mission and


vision.
A mission is the purpose of the
organization.It explains why the organization
exists .
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• 2. SWOT ANALYSIS

• Analyze the strength, weaknesses and


identify opportunities and threats of the
organization i.e. SWOT Analysis baseline.
SWOT analysis is used as the basis for
future improvements.
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3. Setting goals and objectives.


Goals and objectives are developed to bridge the
gap between current capability and the mission
Objectives – are statements describing results
and the way in which they will be achieved. They
are more specific and narrower than goals.
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4. Develop a strategy.
Information collected from the environmental scan is
used to:
Match strengths with opportunities and address
weaknesses while trying to minimize threats to its
existence.
Make superior profits by getting a competitive
advantage over competitors.
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5. Implementation of strategy.

Strategy is implemented by developing


programs, budgets and procedures.

It involves organizing the firm’s resources and


motivating staff to achieve the firm’s
objectives.
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6. Evaluating /monitoring and control


Evaluation and control consists of:
• Defining parameters to be measured.
• Defining the target values of those parameters.
• Performing measurement.
• Comparing measured results to predefined standards.
• Making necessary changes.