CHAPTER 2:

PLANNING

Learning Objectives
After completing this chapter,
students should be able to:
Define planning
Explain why planning is critical
for effective leadership
Describe strategic planning
Discuss operational plan

Definition of Planning & Plan

Planning
Setting goals and defining the actions
necessary to achieve those goals.
Plan
A blueprint (proposal/outline) for action
that prescribes the activities necessary
for an organization to realize their goals.

THE PURPOSE &

IMPORTANCE OF PLANNING
Purpose :
To ensure that the organization is both effective
and efficient in its activities.
Importance :
Helps to determine what are companys
opportunities
Planning enables company to identify the course of
action
Without planning much will be left out
Through plan, resources are efficiently and
effectively utilized, resulting in saving resources

continue.

Continue.
When we plan we know what are we really
expected and becoming more meaningful.
It helps to achieve goals and reduces
overlapping activities.
Planning can provide effective utilization of
available facilities.
Planning helps managers to become confident
and aggressive leader and can cope with all the
problems.
Planning guides management thinking to future
desirable activities and what must be done to
attain goals.

Benefits of Planning

STRATEGIC PLANNING
A comprehensive plan (complete planning) for
accomplishing an organization goals and objectives.
Strategic planning is the process by which an organization
makes decisions and takes actions that affect its long-run
performance.
A strategic plan is the output of the strategic planning
process.
Strategic plans define both the markets in which the firm
competes and the ways in which it competes in those
markets.

STRATEGY
A method of shaping a companys
future and involves determining the
long-run direction of the organization.
Purpose of Strategic Planning :
To move the organization from where
it is to where it wants to be.

MISSION STATEMENT

DEVELOPING A MISSION STATEMENT

DEVELOPING A MISSION STATEMENT

Exercise:
From the mission statement of Starbuck.
The premier purveyor of the finest coffee in the world
while maintaining our uncompromising principles as we
grow.

Try to find out:

1. Product or services
2. Targets markets
3. Overall strategy for ensuring long-term success

IMPORTANCE OF
MISSION STATEMENT

OPERATIONAL PLAN

TYPES OF OPERATIONAL PLAN:

STANDING PLANS

TYPES OF OPERATIONAL PLAN:

SINGLE-USE PLANS

BARRIERS TO GOAL SETTING & PLANNING

OVERCOMING THE BARRIERS TO PLANNING