Business administration unit 2 planing

2. Introduction
Managerial activity begins with….
Planning has been the Thumb rule….
Decision making…
Process of fixing goals and finding ways to attain these
goals
Develop confidence in managers

3. Meaning
Planning is the first managerial function to be
performed in the process of management. It is
concerned with deciding in advance what is to be
done, when, where, how and by whom it is to be
done. Thus, it is a predetermined course of action
to achieve a specified aim or goal.

4. Definitions
“Planning is thinking process, the organized foresight, the vision
based on facts and experience that is required for intelligent
action.”
- Alfred Beatty
“Planning is essentially decision making since it involves choosing
from among Alternatives”
- Koontz O’Donnell
“”Planning the selecting and relating of facts and making and using
of assumptions regarding the future in the visualization and
formulation of proposed activities believed necessary to achieve
the desired results.”
-George R Tarry

5. A Careful Analysis of above Definitions:
 It is concerned with future and its essence is
looking ahead
it involves thinking and analysis of information
it involves a predetermined course of action
it is concerned with the establishment of
objectives
It is fundamentally a problem of choosing after
a careful study of alternative courses
It involves decision making
Its objectives is to achieve better results
It is continuous and integrated process

6. Nature of Planning
1. Focus on Objective
2. It is an intellectual
process
3. Planning is selective
process
4. Planning is pervasive
5. Planning is an
integrated process
6. Planning is directed
towards efficiency
7. Planning is flexible
8. First function
9. It is a decision making
process
10.It is a continuous
process

7. Objectives
1. Multiple in nature
2. Objectives have hierarchy
3. Objectives may be long range or short-range
4. Objectives are interdependent
5. Objectives either tangible or intangible
6. Objectives have a priority
7. Objectives sometimes may clash with each
other

8. 1
2
3
4
5
6
7
Hierarchy of Objectives
1. Mission or Purpose
2. Overall Objective
3. Main Divisional objective
4. Main Departmental
objective
5. Sectional Objective
6. Work Group Objective
7. Individual Objective

9. Planning Process
1. Awareness of Opportunities & problems
2. Collecting & analyzing information
3. Determination of objective
4. Determining Planning Premises and Constrains
5. Finding out the alternative courses of action
6. Evaluation of alternatives and selection
7. Determining Secondary plan
8. Securing participation of employees
9. Providing for follow-up and future evaluation

10. Significance of Planning
1. Planning offsets future uncertainty and change
2. It tackles increasing complexity in modern
business
3. It helps in co-ordination
4. It helps in exercising effective control
5. It helps in proper utilization of resources
6. It facilitates unity of action
7. It helps in avoiding business failure
8. Improves competitive strength
9. Improves adaptability
10. Guides decision making

11. Components of Planning
1. Mission
2. Goal
3. Objectives
4. Policies
5. Procedure
6. Programs
7. Rules
8. Strategies
9. Budget

12. Planning Premises
1. Internal and External Premises
2. Tangible and Intangible premises
3. Controllable an Non-controllable premises

13. Strategy Formulation
A strategy is a broad plan developed by an
organization to take it from where it is to where
it wants to be. A well-designed strategy will help
an organization reach its maximum level of
effectiveness in reaching its goals while
constantly allowing it to monitor its
environment to adapt the strategy as
necessary. Strategy formulation is the process
of developing the strategy.

14. Cont.
Strategy formulation requires a series of steps performed in
sequential order.
The steps must be taken in order because they build upon
one another.
However, there are two processes that are continually
performed throughout strategy formulation:
Environmental Scanning and Continuous Implementation.
Environmental scanning is simply the process of paying
attention to the external environment for factors that may
affect your organization's performance, which will need to be
addressed in the strategy formulation process.

15. Strategy Formulation
1. Values assessment: Every organization has
values, and the strategic plan should align with
the organization's values. A value assessment
should look into the personal values of the
organization's members, organizational values,
the organization's operating philosophy, culture
and stakeholders.
2. Vision and mission formulation: Once you
have a firm handle on organization's values, it's
time to establish its vision and mission, which is
the foundation upon which your strategy will be
built.

16. Cont.
3. Strategy design involves four elements. First, you
must identify the major lines of your organization.
4. Next, you will want to do a performance audit
analysis, which is a close look at the company's
strengths, weaknesses,external opportunities and thr
eats. This is often referred to as a SWOT analysis.

17. Values
• "Equal rights for all",
• "Excellence deserves admiration", and
• "People should be treated with respect and dignity"

18. McDonald‘s vision is "To be the best quick service
restaurant experience". Being the best means
providing an outstanding quality, service,
cleanliness, and value, so that we make every
customer in every restaurant smile.
Mission "Is to be our customer's first choice,
when by comes to, top quality products,
outstanding service / cleanness and great value
for money ".