The focus of C P is on the longer range future usually limited to five, six or seven years.It is based on projective analysis and so plans are modified as required. For example, C P in capital- intensive industries (such as electricity generation, iron and steel resources) is long-range planning and the companies have to strategically determine whether their products will have relevance over the whole period of commitment of resources.
The focus of C P is on the longer range future usually limited to five, six or seven years.It is based on projective analysis and so plans are modified as required. For example, C P in capital- intensive industries (such as electricity generation, iron and steel resources) is long-range planning and the companies have to strategically determine whether their products will have relevance over the whole period of commitment of resources.Tags: Quality Problem SolvingResearch Paper About MusicDiabetes Mellitus Type 2 EssaysThanksgiving Creative Writing PromptsProblem Solving Tasks6 Steps To Problem SolvingCharles Chesnutt Essays And SpeechesModel Research PaperPlagiarism PapersDissertation Proposal Writing Help
The following points highlight the three levels of strategic planning process. The factors like volume of business administration, future plans, market characteristics, etc. For a multi-business firm, an SBU is an operating division which serves a distinct product-market segment or a well-defined set of customers or a geographic area. Concern is focused on establishing or modifying the product, R&D, production, finance, marketing, personnel and accounting policies in such a way that each is consistent with the others and the company’s overall objectives are likely to be met. Strategic product planning is a critical element in overall strategic planning of a multi- business firm.
Thus, depending on the type of organisation, an SBU could be a single product, product line, a department of business, or even the State’s mental health agency. At SBU level the strategic planning focuses on orienting the firm to take advantage of external environmental opportunities efficiently and effectively. The answers to such questions are mostly contingent upon a wide range of criteria like SBU goals, personal values and goals of decision makers, resources available within, and the threats and opportunities in the environment.
Plans in one area are to be modified’ to meet the constraints imposed by another parts of the business.
At this stage of planning, alternative courses of action are evaluated and present-day tactics modified to achieve broader strategic objectives.
Certain key factors such as ROI, sales per person and other trends are observed constantly for internal studies. In contrast, a company in fashion industry producing women’s dresses has to concentrate on strategic issues for one year or so, as the business activities are to be adjusted in the light of consumer tastes and preferences.
3 Levels Of Business Planning
External developments relating to general economic conditions, technological advances, consumer habits, competition and many other factors are closely studied since they may require revisions in planning at any time. The strategic planning phase of C P process governs the acquisition, use, and disposition of resources to achieve corporate goals.
The company opted for the opportunity since it allowed them to serve their current customers even better without appreciable modifications in the existing plant and with little retraining of the same sales force.
Moreover, the company knew that no other firm in this industry would be able to match the breadth of their augmented product line and that they themselves would require years to develop a comparable set of products.
For example, many firms make ‘belt buckles’; however, one small firm designs speciality ‘belt buckles’ with corporate logos for companies.
Product life cycle (PLC) is another concept which is of value for taking strategic actions.