Planning

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Planning
Chapter2

• I-foundation of planning
• 1-What is Planning?
• Planning Thinking before Doing
• Planning What is to be done and How is to
  be done

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• Planning can be defined in term of
• Formal Planning
• Setting specific objectives or goals.
• Covering period of time.
• writing down.
• and sharing of objectives to organizational
  members (subordinates).
• Informal Planning
• Nothing writing down.
• No sharing of objectives to the subordinate in
  organization.
• No timing

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• 2-Purpose of planning
• All managers should engages in planning,
  because, planning can
• Give direction
• Reduce the impact of changes
• Minimize waste
• Set standard to participate control
• 3-Type of planning
• A-In terms of scope of activities
• Strategic plan
• Tactical plan
• Operational plan

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• B-In terms of time frame
• Long term plan
• Short term plan
• Intermediate plan
• C-In terms of time frame
• Specific plan
• Directional plan

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• 4-Approachs to planning
• Top down planning
• Bottom up planning
• Inside out planning
• Outside in planning

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• II-Major planning tools
• Budgets
• Schedules
• Standard
• Policies
• Procedures

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• 1-What is strategic Planning
• It is the determining what organizations long
  term goals should be for the next 1-10 years with
  resources they expect to have available.
• 2-Strategic Business Planning
• It is the documentation that preparing by
  carefully including four step as bellow

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Internal analysis (Strong and weakness
Vision, mission, objectives/goals
SWOT analysis and Create Strategy
Implementation
Evaluation
External analysis (Opportunity and Threats
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• A-Vision
• It is the determining what organizations long
  term goals should be for the next 1-10 years with
  resources they expect to have available.
• Build Bright University will be one of the
  leading and internationally recognized
  universities in the region.
• B-Purpose
• Who we are ?
• What we do ?
• Whom our customers are ?
• or For whom do we do it ?
• Example
• BBU
• Motorola

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• 3-Environment Analysis
• A. External Factors
• Economy
• Society/Culture
• Technology
• Competition
• Labor Supply
• B. Internal Factors
• Human Resources
• Product and Services
• Finance
• Equipment/Technology
• Policy
• Culture

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• SMART goals
• Specific
• Measurable
• Attainable
• Result
• Time
• SWOT analysis
• It is a comparison of Strengths, Weakness,
  Opportunities, and Threats that help executives
  formulate strategy.

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Internal Assessment of the Organization

• What are our weaknesses ?
• Outdate facilities
• Inadequate RD
• Obsolete technology
• Weak planning failures

• What are our strengths ?
• Manufacturing efficiency
• Skill workforce
• Good market share
• Strong financing
• Superior reputation

SWOTAnalysis

• What are our threats ?
• New competitions
• New regulations
• Changing market tastes
• Substitute products
• Shortage of resources

• What are our opportunities ?
• Possible new markets
• Strong economy
• Weak rivals
• Emerging technologies
• Growth of existing market

External Assessment of the Environment
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• 4- Developing Strategy
• Marketing strategy developing marketing
  objectives are base on the situation analysis.
• Conduct market segmentation.
• Select target market and measure market demand.
• Create strategic marketing mix.
• Determine sales forecasting.

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• Product strategy
• Select Location
• Accessorily to transportation.
• Closeness to the market.
• Availability of labor, raw material.
• Cost factors (land, construction, materials,
  labor)
• Quality of location services (policy, banking,
  insurances)
• Local regulation
• Other utilities (water supply, power, sewer)

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• Layout
• building
• office
• equipment and environment
• workflow systems
• Designing production/Operation process
• It is flow line of production or services.
• example
• Input Output
• Raw material Products
• or Customer Services
• Material
• Labor

Work Station
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• Planning Inventory
• right goods in the right quantity at the right
  time and place.
• Example JIT method
• Quality Control
• meet certain standards.
• Forecasting production
• using past and current information to predict
  future production.
• Production requirementsPSDEI-BI
• 2050 units 2000200-150

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• 3-Organizational Strategy
• Deciding on a legal form of the organization
• Sole Proprietorship
• Partnership
• Corporation
• Staffing
• What types of employees are needed?
• How many employees are needed?
• How should employees be recruited and trained?
• How should employees be compensated and motivated?

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• 4-Financial Projection
• Pro forma income statement
• Pro forma balance sheet
• Cash Budget Break event point

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0
TCTS P x QoFCVC P x QoFCV x Qo P x Qo-V x
QoFC
Qo
Q
Qo(P-V)FC QoFC/(P-V)
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• III-decision making
• What is decision making?
• It is the process of identifying problems and
  opportunities and resolving them.
• types of managerial decision making
• A-Programmed Vs Non-programmed decision making
• Programmed decision The process of identifying a
  problem and matching the problem with established
  routines and procedures for resolving it.
• Non-program decision The process of identifying
  a problem when a situation is unique and there
  are not previously established routines or
  procedures that can be used as guides.

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• B-Proactive Vs Reactive decisions
• Proactive decision a decision made in
  participation of an external change or other
  conditions.
• Reactive decision the decision made in response
  to external changes.
• C-Intuitive Vs Systematic decisions
• Intuitive decision a process of estimating or
  guessing to decide among alternatives.
• Systematic decision an organized, exacting, data
  driven process for choosing among alternatives.

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1. Decision making process

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• Step1 Identify the problem
• Scan environment and emergence of potential
  problem.
• Categorize the situation as a problem or not.
• Try to understand the nature/cause of the
  problem.
• Step2 Develop alternative solutions
• Try to develop as many alternatives as possible
  by using such techniques as brainstorming.
• Try to be non-judgmental of potential solution at
  this stage

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• Step3 Evaluate and select among alternatives
• Evaluate feasibility of implementation
• Evaluate quality
• Evaluate acceptability
• Evaluate reversibility
• Evaluate costs
• Evaluate ethics
• Step4 Implement and monitor the solution
  selected
• Plan and implement the chosen solution
• Be sensitive to the decision that could effects
  on others
• develop follow-up mechanisms

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• 4-Indivual and Group decision making
• A-Individual decision making
• B-Group decision making