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STRATEGIC PLANNING

INPUTS PEOPLE CAPITAL MANAGERIAL SKILLS TECHNICAL SKILLS TOP MANAGEMENT ORIENTATION EXTERNAL ENVIRONMENT

ENTERPRISE PROFILE

FORECAST OF FUTURE ENVIRONMENT

PURPOSE AND OBJECTIVES

RESOURCE AUDIT

Feed Back

ETOP

EVALUATION & STRATEGIC CHOICE

MEDIUM RANGE PLANNING DEVELOPMENT OF ALTERNATIVE STRATEGIES SHORT TERM PLANNING

SWOT

IMPLEMENTATION

CONTROL

SWOT ANALYSIS
ASIAN PAINTS Opportunities
Increasing scope for specialised & high qlty paints No entry of superior company

Threats
Industry attracts very high tax Critical raw materials are to be imported

SWOT
Strengths
High image for its product range Efficient distribution net work

Weakness
Inadequate production capacity utilisation Higher transportation cost

PORTFOLIO ANALYSIS
BCG growth matrix
HIGH HIGH LOW

Stars
Cash Cows

GROWTH RATE

Question marks

LOW

Dogs

MARKET SHARE

MAJOR KINDS OF STRATEGIES


Growth Finance Organization Personnel Public relation Product or services Marketing

COMPETITIVE STRATEGIES BY PORTER


Overall cost leadership strategy Differentiation strategy Focused strategy

EFFECTIVE IMPLEMENTATION OF STRATEGIES


Successful implementation of strategies Communicating strategies to all key decision making managers Developing and communicating planning premises Ensuring that action plans contribute major objectives and strategies Reviewing strategies regularly Developing contingency strategies and programs Making the organization structure fit planning needs Continuing to emphasize planning and implementing strategy Creating company climate that forces planning

DECISION MAKING
Is defined as selection of a course of action from among alternatives; It is at the core of planning

PROCESS
Premising Identifying Alternatives

Evaluating of Alternatives

Choosing an alternative

Implementing Decision

EVALUATING OF ALTERNATIVES
Quantitative and Qualitative factors Marginal Analysis Cost effectiveness analysis

SELECTING AN ALTERNATIVE
Experience Experimentation Research and Analysis

PROGRAMMED AND NON PROGRAMMED DECISIONS


Programmed Decisions Is concerned or applied to structured or runtime problems Non Programmed Decisions Are concerned or applied for unstructured Novel and Il defined situation of a non recurring nature

MODERN APPROACHES TO DECISION MAKING UNDER UNCERTAINITY


Risk Analysis

Decision Trees
Preference Theory

ORGANISING
It means The identification and classification of required activities The grouping of activities necessary to attain objectives The assignment of each grouping to the manager with the authority necessary to supervise it The provision for coordination horizontally and vertically in the organization structure.

FORMAL AND INFORMAL ORGANIZATION


Formal Organization Formal organization means the intentional structure of roles in a formally organized enterprise Informal Organization A network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another.

SPAN OF MANAGEMENT
It states that, there is a limit to the number of subordinates a manager can effectively supervise but the exact number will depend on the impact of under lying factors.

FACTORS DETERMINING AN EFFECTIVE SPAN


Subordinate Training Clarity of Delegation of Authority Clarity of plans Use of Objective standards Rate of change Communication Techniques Amount of personal contact needed Variation by organization level Positive attitudes of subordinate toward assumption of responsibility.

ORGANISING PROCESS
1. Establishing enterprise objectives 2. Formulating supporting objects, policies and plans 3. Identifying and classifying the activities necessary to accomplish these 4. Grouping these activities 5. Delegation of authority 6. Establishing authority relationship

DEPARTMENTATION
Departmentising is achieved by tolling off persons who are to perform same duties and putting them under the supervision of manager

FORMS OF DEPARTMENTATION
By Time By enterprise function By Territory of Geography Customer Departmentation Process or equipment departmentation By product

MATRIX ORGANISATION
LINE / STAFF AUTHORITY AND DECENTRALISATION AUTHORITY AND POWER
Power : Is the ability of Individuals or groups to induce or influence the belief or action of other person or groups. BASES OF POWER Legitimate Power Expertness Reward Power Coercive Power

AUTHORITY

Is the right in a position to exercise discretion in making decision affecting others.

LINE AND STAFF CONCEPTS


Line Functions are those that have direct impact on accomplishment of the objectives of the enterprise Staff Functions are those that help the line persons work most effectively in accomplishing objectives

Line Authority is that relationship in which a superior exercises direct supervision over a subordinate
Staff Authority is advisory function is to investigate, research and give advise to line managers

FUNCTIONAL AUTHORITY
Is the right which is delegated to an individual or department to control specified processes, practices, policies or other matters relating to activities under taken by persons in other departments

DECENTRALIZATION OF AUTHORITY
Is the tendency to disperse decision making authority in an organized structure

DELAGATION OF AUTHORITY
Authority is delegated when a superior gives a subordinate discretion to make decisions

PROCESS OF DELEGATION
Determining the result expected from a position Assigning task to a position Delegation of authority for accomplishing these tasks Holding the persons in that position responsible or accomplishment of the tasks.

EFFECTIVE DELEGATION
It depends upon Receptiveness Willingness to let go Willingness to let others make mistakes Willingness to trust sub ordinates Willingness to establish and use broader controls

GUIDE LINES FOR OVERCOMING WEAK DELEGATION


Define assignments and delegate authority Selection of Right person Maintain open lines of communication Establish proper controls Reward effective delegation and successful assumption of authority

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