Lecture corporate planning

Economy and Business Study Chapter one Demand and Supply

1. Corporate Planning Lecturer : Daud Dahir [email protected] 12/15/2014 D ud Dahir 1

2. Objectives of this chapter Introduction of corporate planning advantages of corporate planning Key corporate planning questions Difference b/w corporate planning and business plan Corporate planning definition Business planning definition Interdependence Effects Considerations Corporate planning process 12/15/2014 Proff Daud Dahir 2

3. Introduction of corporate planning Corporate planning is a process used by businesses to map out a course of action that will result in revenue growth and increased profits. Although large corporations may have staff members-or entire departments-committed to performing the planning function, small business owners can become proficient through learning basic concepts and putting forth the effort necessary to create a comprehensive plan. 12/15/2014 Proff Daud Dahir 3

4. Continuous………………………… Corporate planning strategies provide business owners with specific guidelines or rules for improving business operations and advancing the company’s mission. Corporate planning strategies provide these guidelines as they relate to the entire company. These strategies provide managers and employees with a targeted direction for the company. Business owners can also use strategies as a reference to ensure certain business opportunities that will over extend the company mission and resources are avoided. 12/15/2014 Proff Daud Dahir 4

5. Difference B/W corporate planning and business planning Business planning definition the strategies the business will use to meet its goals and missions. Business planning provides details on the business’ operations, products and services, and marketing strategies as it relates to the inclusive industry. This process expounds the operation strategies from short- and long-term views while focusing on the overall activity of the company. The business plan does not identify specific employee strategies but rather provides industry strategies. 12/15/2014 Proff Daud Dahir 5

6. Continuous…………………………. Corporate planning definition the strategies that the employees will take to meet the business’ goals and missions. This type of planning, also known as strategic planning, focuses on staff responsibilities and procedures. As with business planning, strategic planning requires a close look at the company’s missions, strengths and weaknesses. However , corporate planning identifies the step-by-step process of the business, such as the actual steps the staff will take to counteract challenges, train employees and achieve accomplishments. Corporate planning also provides specific, measurable goals with realistic time lines. 12/15/2014 Proff Daud Dahir 6

7. Interdependency b/w the PB and CP Business planning and corporate planning are interdependent. Although business planning can exist without corporate planning, the goals of the business plan are much more attainable with corporate planning. As with business planning, the corporate plan can exist without a business plan. However, without business planning, the overall goals and missions of the business are not clear. Therefore , the corporate planning becomes incomplete. 12/15/2014 Proff Daud Dahir 7

8. Effects of Corporate Planning on Business Planning There are many effects of business and corporate planning. Not only does the planning process help businesses to succeed, it helps businesses to determine when new directions and changes are needed . A close analysis can result in early recognition of potential issues and dangers, as well as help the company to quickly adapt to customer demand and needs 12/15/2014 Proff Daud Dahir 8

9. Considerations Business and corporate plans should be reviewed periodically. The plans should be reviewed to compare the business’ current standpoints against those that were outlined in the plans. Adjustments should be made, if necessary, to align the business’ actual activities to the defined plans. When analyzing needed changes, consideration should be given to the industry’s environment and trends, as well as the economy’s stability, customer demand and business needs. The balancing of the business and corporate plans should outline the moves or changes that the business will strive to implement and framework the strategies that the employees will use to meet the business’ missions and goals. 12/15/2014 Proff Daud Dahir 9

10. The Advantages of Corporate Planning The success of a firm or an organization is typically attributed to effective corporate planning. Successful corporate planning details the scope of the business, defines organization goals, establishes roles and job responsibilities, draws up detailed plans to achieve those goals, allocates resources and oversees operations. It is a structured approach aimed at ensuring that an organization meets its objectives. 12/15/2014 Proff Daud Dahir 10

11. continuous Corporate planning Reduces Uncertainty Corporate planning Allocates Resources Corporate planning Reduces Ambiguity Corporate planning Helps in Measuring Success give your company direction to grow. Co-ordinates activity Motivates and guides people Support efficiency decision making Allocates responsibilities 12/15/2014 Proff Daud Dahir 11

12. Key corporate planning questions This question will help managers to determine current position, future desired position and thee best way we can achieve there if it possible where are we now How did we get here Where will we like to be How do we get there Are we on course to achieve our target 12/15/2014 Proff Daud Dahir 12

13. Corporate planning process Reporting on performance The Corporate Performance Report is provided to Council, and presents an annual assessment of our performance for the previous calendar year against the Corporate Plan. The report is developed by set leaders and the Executive Committee and presents an in-depth analysis of our performance outcomes against our KPIs. 12/15/2014 Proff Daud Dahir 13

14. Continuous the process…….. Selecting priorities for the year ahead Based on the performance assessment of the year previous, the corporate planning process moves ahead with the selection of strategic priorities (from the strategic plan) to be the key focus for the year. These strategic priorities create the framework for all department, division and unit. 12/15/2014 Proff Daud Dahir 14

15. Continuous………. Setting Key performance indicators and targets Once the strategic priorities are identified, Key Performance Indicators (KPIs) and targets are set to guide our achievements in these areas . KPIs and targets are measurable and achievable milestones that support the delivery of our strategic priorities. 12/15/2014 Proff Daud Dahir 15

16. C ontinuous Department and D ivision C orporate P lans Each department and division has its own corporate plan that outlines key actions to address the organization's strategic priorities. These plans outline: specific timeframes for actions to be achieved who will be involved and responsible for delivering on these actions available resource and budget provisions reporting lines for monitoring progress. 12/15/2014 Proff Daud Dahir 16

17. continuous……………. Resource allocation Resources are allocated during the annual budget process under the auspices of the Budget Planning Committee.  Funds for strategic initiatives come from a variety of sources, which may include: re-prioritization of activities within organization and units targeted institution-wide investments in production, sales and marketing. 12/15/2014 Proff Daud Dahir 17

18. The End of the Chapter See the Next Chapter Visit the web page: Dauddahir.wordpress.com http:// www.slideshare.net/ilkowayne Follow me on Twitter : https:// twitter.com/dauddhassan Like My Facebook Page: Haji Yare Ilkawayne 12/15/2014 Proff Daud Dahir 18