​Economics

​Corporate
Planning John C. Peralta
MBA - 1
Business Conglomerate
CATEGORY | SUB-CLASS | STAGES | HEIRARCHY

SECTION SLIDES MAIN CONTENT | LECTURES GRAPHICS AND CHARTS

Definition | Phases |
Elements & Characteristics
A lengthly but illustrative Introduction
Introduction
Contents | Definition

PHASES
Length of Planning terms

Structure | Foundation
Elements & Characteristics
 C O R P O R AT E
PLANNING
It is defined as the process of deciding
long term goals and objectives within the
ambit of organization's strength and
weaknesses in the existing and prospective
environmental setting to ensure their
achievement either by integrating the short
term and long-term plans or by adopting
such measures which may bring even
structural changes in the composition of
the organization, after taking recourse to
finan­cial resources.

It encompasses the entire field of

business policy formulation --- another
name for corporate planning. However,
everything leads down to a narrow path
towards business economics.
 (3) Phases of Corporate
Planning
• Operational Planning
• Project Planning
• Strategic Planning

The sum of the plans of all

projects and operations in the future
will represent a strategic posture and
economic forecast for the business.

Strategy = WHERE the firm is now

WHERE it wants to go
HOW to get there

IMPORTANT:
Examine the very ἉCT‘ of planning
itself.
 Elements
1. Laying down long-range corporate
goals and objectives.
2. Macro and Micro Environments.
3. Strengths and weaknesses of the
organization.
4. Integration between short-term
and long-term plans.
5. Structural changes in the
organization.
6. Implementation of the plan.
7. Optimal use of scarce financial
resources.
8 Evaluation of performance.
9. Feedback to make corporate
planning more effective and
purposeful.
Characteristics
1. Corporate planning is a formal and
systematic process.
2. It is a rational process. It requires
imagination, foresight, reflective
thinking, judgement and other mental
facilities.
3. It is a continuous process. It is a
dynamic exercise that goes on
throughout the company’s life.
4. It has a long-term perspective.
5. It provides an integrated framework
within which each of the functional and
departmental plans are tied together.
6.It Is basically concerned with the
future impact of present decisions.
02
WHAT IS STRATEGIC
PLANNING?
Components | Activities | Responsibilities
STRATEGY PLAN
COMPONENTS
of STRATEGIC PLANNING

Addresses (5) critical questions:

• CONTEXT
• LONG-TERM PLAN
1. What will the world tomorrow be like?
• SHORT-TERM
PLAN
2. What are the company’s hopes for the
• IMPLEMENTION future?
PLAN 3. Where is the corporation currently
headed?
4. How will the business appear in the
future?
5. How can the organization change and
what will it look like?
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STRATEGIZE
S U P E RV I S E
 (4) BASIC ACTIVITIES
O F S T R AT E G I C P L A N N I N G

1 2 3 4

OBJECTIVES ENVIRONMENTAL CORPORATE STRATEGY

FORMULATION APPRAISAL APPRAISAL FORMULATION
STRAT. PLANS TA C T I C S
 CORPORATE
RESPONSIBILITIES
Executives CHARGED with strategic planning have
the corporate responsibility to:
• Formulate corporate objectives
• Analyze the relevant environment
• Appraise the company with respect to that
environment
• Generate strategic options
• Obtain top mgt decision on a particular option
• Express and communicate the resulting
strategic decisions in an operationally useful
manner
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STRATEGIES | I M P L E M E N TAT I O N S
 Success Factors:
1. Understanding of Corporate Planning philosophy

2. The Chief Executive is fully committed to the philosophy of Corporate Planning.

3. The Chief Executive gains full cooperation in all levels in the organization.

4. Linkage between the short and long term plans and between the corporate and the
divisional plans.

5. An effective Management Information System within the organization.

6. Existence of an effective Research & Development (R&D) Team.

7. Corporate planning, to be rational and meaningful, requires involvement of people

operating at different levels.

8. An effective system of monitoring and control must cover in full scale the nature and
terms of the business.
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STRATEGY
I N N O VAT I O N S
TIME is of the Essence
It can be difficult to find the time to plan your business. Other, more
pressing priorities, like trying to bring in revenue, may grab your attention;
however, carving out time regularly will help you keep on top of your
business.

Blocking off a few hours a day or week to focus on your plan should be
part of your business operations. During that time, you can examine the
prior week's financial performance and update any marketing initiatives to
make sure that your business is on track with your initial plan. If it's not,
then you'll need to make adjustments to get back on track.

Timing can be very crucial, too. To plan ahead, or earlier is often more of a
conservative approach, and more often useful, but, in some rare cases, it
may become too obsolete too soon. It is when pre-emptive measures are
put in place early on and, unexpectedly didn’t go well or output wasn’t as
planned, then, a new repressive plan must be executed in place of existing
one.
STRATEGIC PLANNING
ACTIVITIES
PROCEDURES | INPUTS | ANALYSIS
A N I N D E P T U N D E R S TA N D I N G
Strategic Planning doesn‘t happen
overnight. Or atleast not anything close to
impromtu. It is a collection of numerous
studies of patterns similar to projections or
a compilation of events occured prior to
formulating an entirely new plan.

These activites somehow reflect the

overall operations already assumed as in
working by its perfect routine and up until
a certain unexpected problem occur which
would have stalled or stop the normal
course of operations.

Magnified 100x
 O B J E C T I V E S F O R M U L AT I O N
An organization’s OBJECTIVES are the
specific, measurable goals.

Organizational objectives is what fuels

strategic planning. It affects decision while
providing benchmark for the firm’s
executives in measuring efficiency and
progress.

As the organization show progress, so

will its objective change.
 E N V I R O N M E N TA L A P P R A I S A L
A strong organization does not always
rely only on insider-formulated business
policies. It also looks at outside influence
that are considered as factors contributory
to changes in its normal operations. Such
influence are measured indirectly by
frameworks adapted by risk-management
in order to bypass uncertainties and
surpass goals.

Frameworks:
PESTEL Analysis | SWOT Analysis | Posters 5
Forces | BCG Matrix
 C O R P O R AT E A P P R A I S A L
Internal Check-and-Balance done by
resident heads within the organization’s
own means and interpretation is still
effective and quite useful on its own merits.
Somehow, it is the traditional, conservative
approach to creating a strategy in the
hopes of maintaining its own integrity and
viability / applicability of its own policies.
This appraisal is often taken into
consideration where sustainability as
against resulting to mergers/ acquisitions
where said firm’s submission is questioned.

Source: pexels.com
STRATEGY FORMULATION
(6) Main Steps:

1. Setting Organization’s Objectives

2. Evaluating the Organization’s
Environment
3. Setting Quantitative Targets
4. Aiming in context with divisional plans
5. Evaluating Performance analysis
6. Deciding on preferred Choice of
Strategy
 COMPARISON

02 Corporate Planning
vs.
Strategic Planning
CORPORATE PLANNING
1. Nature – Though corporate
planning is environment based, it
is developmental in outlook.
2. Purpose – It addresses all types
of (both predictable and
unpredictable).
3. Coverage – It is meant for
organization as a whole.
4. Scope – It includes both
strategic planning and operational
planning.
 STRATEGIC PLANNING

1. Nature – Strategic planning is devised

to meet changes and challenges in
the environment.
2. Purpose – It addresses contingencies.
3. Coverage – It may relate to a particular
functional area.
4. Scope – It is a part of corporate planning.
MARKET PLANNING
3 Steps:
• Goal – setting
• SWOT Analysis
• Goal - evaluation

5 Stages:
• Situation Analysis
• Target Audience and
Market
• Marketing Goals
• Outline Mktg Strats
and Tactics
• Mktg Budget
MANPOWER
PLANNING

Key Design Principles:

• Lean Organization
• Increasing Efficiency
Factor
• Organization Phasing
MANPOWER
PLANNING
5 Planning Steps:
• Analysis of Org Plans
and Objectives
• Preparing Human
Resources Inventory
• Assessing Future
Supply and Demand
• Matching Supply and
Demand
• Establishing an Action
Plan
TECHNOLOGICAL
PLANNING

Goal:
SYSTEMS
UPGRADE
Organizational
PLANNING
So,
What’s
the
plan??!
TITLE FOR
THIS CHART 20%

One morning, when Gregor Samsa woke from

troubled dreams, he found himself transformed
in his bed into a horrible vermin. He lay on his
armor-like back, and if he lifted his head a
10% 50%
little, he could see his brown belly, slightly
domed and divided by arches into stiff
sections.

CONCLUSION 20%

50% 20% 10%