Types of plan in business

1. Operational planning

2. Business planning – the actions that a business to complete

3. Strategic planning

1.What is OPERATIONAL planning?

>short-range planning that deals with day-to-day maintenance activities

>performed at a unit or departmental level

>done as part of the overall strategic planning

STEPS IN OPERATIONAL PLANNING

1. Set your objectives

2. Set your priorities

3. State your assumptions

4. Review any and all limitations

5. Develop your primary and back-up plans

6. Implement the plan

7. Set up a control system and follow up on progress and results

STRATEGIC planning.

A strategic plan is a high-level overview of the entire business, its vision, mission, objectives, and value. (about 5-10 years)

Tactical planning describes the tactics the organization plans to use to achieve the ambitions outlined in the strategic plan. It is a short range (i.e. with a scope of less than one year), low-level document that breaks down the broader mission statements into smaller, actionable chunks. If the strategic plan is a response to “What?” the tactical plan responds to “How?”.

Operational panning describes the day to day running of the company. The operational plan charts out a roadmap to achieve the tactical goals within a realistic timeframe. This plan is highly specific with an emphasis on short-term objectives. “Increase sales to 150 units/day”, or “hire 50 new employees” are both examples of operational plan objectives.

STEPS IN STRATEGIC PLANNING

1. Analyze the organization’s internal and external environment (SWOT analysis)

2. Conduct a stakeholder assessment

3. Define the purpose of the organization

4. Clarify values important to the organization

5. Set the goals and objectives

6. Communicate the goals and objectives to the constituents

7. Identify strategies – set time lines and tasks

8. Estimate and allocate resources

9. Develop and communicate a marketing or business plan

10. Establish a system for the implementation and monitoring of policies, procedures, and rules

11. Establish a system for exchanging information and building consensus

11. Provide a mechanism for evaluation

Where are we now?

· The purpose of the situational analysis is to determine which opportunities to pursue

· PEST/PESTEL analysis – identify and analyze trends in environment

· Competitor analysis – understand and, if possible, predict behavior of competitors

· Audit of internal resources

· SWOT analysis – build on strength, resolve weaknesses, exploit opportunities, confront threats

Situational analysis

· Analyzing the present situation is the prelude to devising objectives and strategies for the future

· We need to understand where we are and where we have come from before planning the future

· But we must be always careful to avoid paralysis by analysis

· This describes a situation in which no decisions are made because of the disproportionate amount effort that goes into the analysis phase