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Outline

1. Definition

2. How Planning Starts

3. Levels of Planning

4. Types of Plans
1. Goals and Plans ­ Definition

A goal is a desired future state that the


organization attempts to realize

PLANNING

A plan is a blueprint for goal


achievement and specifies the
necessary resource allocations,
schedules, tasks, and other
actions

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Planning

• Planning incorporates both – goal and Plan


• Defn - Planning is determining the Organization’s
goals and defining the means for achieving them
• All other management functions stem from planning

No Plan is Perfect… But Without plans and


goals….organizations flounder

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2. How Planning Starts
1. Vision / Mission / Purpose

2. Goals / Objectives

3. Strategy

4. Plan

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Vision Statements 

"Our vision is to be earth's most customer centric company; to build a


place where people can come to find and discover anything they might
want to buy online."

( Source : Amazon.com)
Vision Statements 

PepsiCo
"PepsiCo's responsibility is to continually improve all aspects of the world in
which we operate - environment, social, economic - creating a better
tomorrow than today. Our vision is put into action through programs and a
focus on environmental stewardship, activities to benefit society, and a
commitment to build shareholder value by making PepsiCo a truly
sustainable company."
(Quoted from Pepsi Co.com.)
Vision / Mission / Purpose Nirma

• Nirma is a customer-focused company


committed to consistently offer better quality
products and services that maximise value to the
customer. This customer-centric philosophy has
been well emphasised at Nirma through:
• Nirma is a phenomenon and synonymous with
Value for Money, Sustained innovation, an
unceasing effort to deliver better value to
consumers, through better product quality

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Strategies & Plans ­ Nirma

Strategies to achieve Vision


1. Market Creation through Business Ideas & Pdt.
Innovation
2. Value through Economies of scale
3. Value through Backward Integration
4. Value through Marketing and Distribution
-Umbrella Branding
-Parallel Distribution

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Nirma – Vision

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Results ­ Nirma Pdt Innovation Strategy

• Soaps: Nirma Bath Soap, Nirma Beauty Soap,


Nirma Lime Fresh Soap, Nima Rose, Nima Sandal
• Detergent: Nirma Washing Powder, Nirma
Detergent Cake, Super Nirma Washing Powder,
Super Nirma Detergent Cake, Nirma Popular
Detergent Powder, Nirma Popular Detergent Cake
• Salt: Nirma Shudh
• Scouring Products: Nirma Clean Dish Wash Bar,
Nima Bartan Bar

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Nirma Business Strategy – Cost effective 
– to achieve “value for money” products

• Backward Integration – 90% of raw materials are


manufactured by themselves
• Economies of scale - lowering the average cost per
unit through increased production since fixed costs
are shared over an increased number of goods
• Umbrella Branding

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3. Levels of Goals and Plans

Copyright ©2012 by South-Western, a


division of Cengage Learning. All rights
12
reserved.
3. Levels of Goals and Plans
1. Mission / Vision / Purpose

2. (Top) Strategic Goals and Plans (V.Ps, A.V.Ps)

3. (Middle) Tactical Goals and Plans (Gen. Mgr.


Chief of Ops etc.)

4. (Bottom) Operational Goals and Plans (Sr. Mgr,


Jr. Mgr.)
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Strategic Planning

• Org level planning for whole Org.


• Top management
• long range – 10 Years etc.
• Major impact on Org.
• Major commitment of resources, total assessment
of org.’s capabilities, strengths, weaknesses and
analytical evaluation of the dynamic environment
• Turn Org Goals into reality within that time period
• Direction from where it is & where it wants to be
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Tactical Planning 

• Divisional level Planning


• To execute strategic plans
• Middle Management - functional mgrs, dept. heads
• Intermediate range – 1 – 2 years
• Strategic plng focuses on future, tactical plng
emphasizes on how it will be done
• Refines the broad strategic plans into more
workable and realistic plans

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Operational Planning

• Lower level management


• Unit supervisors, foreman, Supervisors
• Short range plans - 1 week to 1 year
• Specific plans to determine how to do specific
job
• Planning at each level supports the other level
• Operational goals are precise and measurable
• Ex. Operational goal : 90% efficiency in deliveries

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Sales Example

• Strategic goals – Sales Target – 100 Crores


• Tactical goals – Assigning Territory wise Break up
and provision of any kind of feasible support to the
sales team – marketing, advertising, promotions,
HR support for recruiting / training, Finance
support for expediting budget approvals etc.
• Operational goals – Area wise teams will plan
which new markets to open, accounts to target,
range selling to achieve sales target

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HR Examples

• Strategic goals – Employee Development


• Tactical goals – HR Head and the team Identifying
areas of development, Designs a Training Calendar /
Chart for the year for all departments - finalizing
exact number of Training Programmes viz technical,
on the job, motivation, stress management, sales etc.
• Operational goals – Finalizing the right Trainers,
organising the program, evaluating benefits and
improvement

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Nirma Example

1.Top Management : Strategic goals – Innovation


Middle Management : Tactical goals – Sales team inputs to understand market
needs, Brief prepared for Market Research
Lower Management : Operational goals – Research to be executed , data
interpretation, insights given to management, New Product Development by
Product Scientists
2.Top Management : Strategic Goals - Backward Integration
Middle Management : Tactical goals - decision to produce / manufacture
specific raw materials
Lower Management : Operational Goals – Activities to buy new manufacturing
plant for producing raw material
3.Top Management : Strategic Goals - Umbrella Branding
Middle Management : Tactical Goals – Meetings with Ad Agency and Creative
agencies to create common brand communication for various brands
Lower Management : Operational Goals - Marketing Communications
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developed and executed as per Plans made by middle management
4. Types of Plans

1. Missions or Purpose
2. Strategy
3. Goals and Objectives
4. Rules
5. Policy
6. Procedure
7. Programs
8. Projects
9. Budgets
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THANK YOU

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