Scope of

Business
Planning
 Our Team

1 2 3

Audya Intan
Qanitah Amaliah Elsy Dwita Indah
Mutiarani
20200420034 20200420048 20200420389
 CONTENTS OF THIS PRESENTATION

Here’s what you’ll find in this presentation :

1. Definition of planning.
2. Three-step planning activities in most organizations.
3. Why Planning is Important?
4. Vision and Mission
5. Levels and Type of Planning
6. Time Horizons of Plans
7. Scope of Business Plan
 01
Definition
of Planning
 Planning is a process managers use to identify and select
appropriate goals and courses of action for an organization.
The organizational plan that result from the planning process
details the goals of the organization and the specific strategies
managers will implement to attain those goals.
 02
Three-step
Planning activities
in most
organizations
1. Determining the organization’s mission and goals: A mission statement is a
broad declaration of an organization’s overriding purpose. What is seeking to
achieve from its activities. This statement also identifies what is unique or
important about its products to its employees and customers.

2. Formulating Strategy: Managers analyze the organization’s current situation

and the conceive and develop the strategies necessary to attain the
organization’s mission and goals.

3. Implementing Strategy: Managers decide how to allocate the resources and

responsibilities required to implement the strategies among people and groups
within the organization.
 03
Why
Planning is
Important
● Planning is necessary to give the organization a sense of
direction and purpose a plan states what goals an organization
is trying to achieve and what strategies it intends to use to
achieve them.

● Planning is a useful way of getting managers to participate in

decision making about the appropriate goals and strategies for
an organization Effective planning gives all managers the
opportunity to participate in decision making.
● A plan helps coordinate managers of the different functions
and divisions of an organization to ensure that they all pull in
the same direction and work to achieve its desired future state
without a well-thought-out plan, for example, it is possible
that the manufacturing function will make more products than
the sales function can sell, resulting in a mess of unsold
inventory.
● A plan can be used as a device for controlling managers within
on organization a good plan specifies not only which goals
and strategies the organization is committed to but also who
bears the responsibility for putting the strategies into action to
attain the goals.
 04
Vission and
Mission
• A vision statement is needed by companies because it provides a
positive outlook. The vision describes an inspirational, long-term
company plan that makes sense to achieve. The vision is usually a
statement of the company's goals for the next 10-20 years so that from
there, the company can develop a road map that makes all elements of
the organization clear and motivated to formulate a strategy. A clear
vision and mission statement provides direction and inspiration to
employees. Inspiration gives feedback that employees feel they care
about the company and are able to increase productivity. Making
employees work for a greater purpose-built on the company's core
competencies.
• Mission is a statement that is formed to clarify the obligations and
objectives that can be measured by an organization. Mission
statements are created to guide the work of employees and
organizational leaders and help gauge whether strategic planning is in
line with the overall goals of the organization. The mission statement
also helps the organization describe its current and future goals. If the
company undergoes a major business change or shift, it makes perfect
sense to revise the statement so that it is aligned with the company's
values and goals. Mission tells who its customers are, what needs to be
met, and how to meet them, if the company builds a mission based on
its superior and competitive internal strengths, has unique capabilities
or resources that help the company perform better than other
companies
 05
Levels and Types
of Planning
 1 3
The Corporate-Level Plan
contains top management’s
decision concerning the
organization’s mission and
goals. Corporate-level
strategy specifies in which
industries and national
markets an organization
intends to compete and why.
2
The Business-Level Plan, the
managers of each division
create a plan that details the
long-term divisional goals that
will allow the division to meet
corporate goals and the
division’s business-level
strategy and structure necessary
to achieve divisional goals
A Functional-Level Plan
states the goals that the
managers of each function
will pursue to help their
division attain its business-
level goals, which, in turn,
will allow the entire
company to achieve its
corporate goals
 06
Time Horizons
of Plans
1. Short-term Planning with horizon of one year or less: Short
term planning is planning that covers a period of up to one or
two years and does not require very detailed details and it is
determined by the characteristics of the organization and
develops strategies to improve it such as skills. In the
workplace, managers devise strategies on how to enhance
these characteristics in the short term to meet long-term
goals. The condition of production equipment or product
quality problems is also a short-term concern. In order to
solve this problem, we have to implement a short-term
solution to solve the problem. The quality of content
provided by employees needs to be handled to meet short
term deadlines set by management. Short-term planning for
training courses for employees, equipment servicing, and
quality repair is a short-term solution. This solution sets the
stage for dealing with the problem more comprehensively in
the long term
2. Medium-term Planning with horizon between one and five
years: Medium-term planning is prepared based on long-term
planning which then needs to be further translated into short-
term planning. Repelita (Five years development plan) is a
type of medium-term planning which is then translated into
annual planning, namely short-term planning that is
operational in nature. Medium-term plans such as repelita
(Five years development plan) are the most efficient in terms
of implementation. It contains clearer goals and targets so as
to provide a definite basis for planned activities. Therefore, it
is not surprising that many choose medium-term planning
with a sustainable system. Under this approach, the plan is
extended one year at a time while refining targets based on
implementation experience. This means that the
achievements achieved in the past implementation are used
as feedback for future improvements to the plan.
3. Long-term Planning with horizon of five years or more:
Long-term planning is perspective in nature, that is, it
provides clear directions for shorter term planning. Long-
term planning still needs to be translated into medium-term
planning and so on into short-term planning. Long-term
planning sets goals for example for the next 20 years and sets
expectations for that year and sets out general policy steps to
achieve these goals.
 07
Scope of Business
Plan
 1 2
Strategic Plan
Strategic planning is the process of
deciding the various programs to be
implemented by the organization and
the estimated number of resources that
will be allocated to each long-term
program, a plan that is designed to
meet the broader goals of the
organization and in general
Operational Plan
Various strategic plans that
describe in more detail so that
they can be achieved optimally.
These plans tend to cover a short
period of time and define the
various ways to be implemented in
order to achieve goals
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“THANK
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