PS408-_LECTURE_2_-CORPORATE_PLANNING.pdf

This is of significance to both private and public sector to understand the essence of corporate plans with emphasis of leadership and management primarily in built environment and engineering

1. WEEK TWO ,LECTURE TWO , SEMESTER TWO, 2017
LECTURER -ROSEMARY ADU MCVIE
MASTER OF URBAN DEVELOPMENT(urban and regional planning),QUT,AUST.
GRADUATE CERTIFICATE IN BUILT ENVIRONMENT & ENGINEERING,QUT,AUST.
BACHELOR OF LAND STUDIES, PNGUOT,PNG.

2. 1.0 Corporate Planning
2.0 Stages of Corporate Planning
3.0 Process of Corporate Planning
4.0 Strategy, Formulation, Implementation and Control
5.0 Types of Corporate Planning

3. 1.0 What is Corporate Planning ?
Corporate planning is the process by which leaders set the
course to achieve objectives.
It includes budgeting, allocation of resources, development of
strategies and delegation of responsibilities to various
departments.
*Company executives typically go through formal strategic
planning annually.
* Leaders use following common tool to assess how the corporation
can best fulfill its mission by taking advantage of opportunities and
optimizing resource efficiency;

4. 1.1 Central Tool -Swot Analysis:
SWOT analysis is the central tool used in corporate
planning.
 SWOT is an acronym for “strengths, weaknesses,
opportunities and threats’’.
 Opportunities are recognised by assessing an
organisation’s strengths and weaknesses.
 An elite service provider would emphasis service
improvement in planning eg. recognition of threats helps
identify strategies and tactics that are doomed to
fail.

5. Proper stages in Corporate Planning:
A corporation grows in an organized fashioned based
on well-structured corporate plans.
In order for a plan to be effective, it has to be created and
implemented in a specific order.
A comprehensive plan is created when proper stages
are used in corporate planning.
Stages of Corporate Planning:
1. Idea -corporate plan starts with an idea. That idea can
come from a member of the executive team, a company
manager, an employee, a customer or even a vendor.

6. Proper stages in Corporate Planning:
The genesis of an idea can be either for ;
(a) a need to improve the way the company follows a
procedure, or
(b) a plan on a grander scale such as company
expansion or a new product release.
The executives must determine if that idea addresses
a legitimate concern of the corporation.
Once establish the process can move forward.

7. Stages of Corporate Planning:
2. Input–a successful plan needs inputs from various
factions of the company that will be affected by the
plan.
Eg.restructuring the sales department affects the
sales group, the management group and every
department that the sales team comes into contact with
on a daily basis.
* Create a team made up of reps. from affected deptsto
get their inputs on the plan.
* Make changes as per inputs and develop final draft
that can be used for company policy

8. Stages of Corporate Planning:
3. Implementation –stages done in phases
phase 1-rolls the plan out to a small control group
that will experiment with the plan .
phase 2–makes changes to the plan based on the
control group’s findings.
phase 3–structured roll out plan. Do not introduce
plan all at once. Introduce it slowly so you can fix
errors along the way.

9. Stages of Corporate Planning:
4. Monitoring -a plan is never totally completed
-a plan run for a limited time will generate
results to be used for future plans.
-monitor your plan regularly to determine the
effect it is having on your business. Hold weekly
or monthly meetingswith division managers to
determine what can be done to improve the plan
as it moves forward.

10. 3.1Establishing Mission, Goals and Objectives:
oCorporate Planning is an important and vital business process
oTop management uses this to formulate strategies and policies
for the company and communicate downward for
implementation.
oThis process entails preparing company’s Mission, Goals and
Objectives;
Mission Statement-clearly explain a company’s purpose of
existence .
Mission Statement portrays an organisation’s corporate image
to the customers and direction for its employees.

11.  3.1Establishing Mission , Goals and Objectives:
oObjectives -are tangible and measurable targets the organization is
aiming to achieve. With these measurable targets the organization can
monitor growth and make necessary corrections.
 3.2 Situation Analysis:
oThe organization conducts an environmental scan to assess available
opportunities and identify its limitations and capabilities.
oTwo types of environmental analysis (a) external and (b) internal;
(a) external analysis –comprise of macro and micro aspects:
macro environment analysis -political, economic, social and
technological aspects.
Micro environment analysis -study of the industry in which the firm
operates or is considering operating in.

12. 3.2 Situation Analysis:
(b)Internal environment Analysis -is analyzing the
organization's culture, structure, image, capacity,
resources and access of key staff. Also
organization's position on the experience curve is
calculated .
The operational efficiency and capacity are
measured.
The firm's patents, market share, finances and
contracts are studied.

13. 3.2 Situation Analysis:
oSWOT Analysis -can be used to analyse both external
and internal analysis
oanalyse strengths & weaknesses of internal environment.
oanalyse opportunity & threats of external environment.

14. 4.1 Formulation of Strategies-formulated after the
analysis of the organisation and the environment it
operates.
oThree(3) generic strategies ; cost, leadership ,differentiation
and focus. But only oneshould be used for any product or service.
4.2 Implementation -strategy is then implemented
otranslated into elaborate policies for employees of the
organisation to understand.
opolicies are created for each org.’s functional areas . They are
marketing, research & development,procurement,production,
human resource and information system.

15. 4.3Control –implemented strategies are continuously
considered & appraised.
omodifications are made from time to time to avoid
deviation on the plan
operformance is monitored and necessary action is
taken to guarantee success.

16. 5.1Plans ultimately provide the organization with a sense of
direction.
 Types of Corporate Planning:
1. Initiation Plans –start up of new business .
a synopsis (or general view) of what to do,
goals and aspirations of the company
helps evaluates the viability of the business
2. Strategic plans –once business commence, management
prepares a strategic plan.
helps company allocate its resources optimally
evaluate the pros and cons of choosing one method of
allocation over another.

17. the company sets attainable goals and targets for
itself.
later, its performance is gauged on the basis of
these targets.
3. Growth Plans –when org. want to diversify into
newer territories of trade .
Helps the org.evaluateits strategies ,finances and
resources and targets before start of new venture

18. 4. Financial Plans -these plans are made to analyze
how best the organization must utilize its money.
helps the org. on its decision to either procure
loan from the market or issue additional equity to
raise money.
able to evaluate what all investments it must make
today for maximum profitability.

19. 5.0 Types of Corporate Planning
5.Human Resource Plans-help the company allocate
its manpower in the most ideal manner.
Job skills are determined and employees proficiencies
identified .
Manpower are then distributed most perfectly.
6. Internal Plans –also called departmental plans
specifically for each dept. in the organizations. Each
depts. set targets and timelines for their
achievement.

21. LECTURE 2(B) OUTLINE
1.0 What is strategic planning ?
2.0 Overview of strategic plan
3.0 How to conduct strategic planning
4.0 How to apply strategic planning model
5.0 Importance of strategic planning in a business
6.0 Features (Outline) of a strategic plan
7.0 Conclusion

22. 1.0 What is Strategic Planning ?
oProvides an organisationwith direction on achieving
its mission and vision statements within a set period
of time by setting milestones and goals.
oIt differs from a typical plan because such planning
takes the external environment into consideration.
oIt involves many parties and research sources in the
analysis of the org. and its environment.

23. ostrategy generally involves setting goals,
odetermining actions to achieve the goals, and
omobilising resources to execute the actions.
ostrategy describes how the goals will be achieve by the
resources.
oStrategy can be planned (intended) or can be observed as
a pattern of activity (emergent) as the organization adapts
to its environment or competes.

24. oStrategy includes processes of formulation and
implementation.
oStrategy planning helps coordinate both (formulation &
implementation).
oStrategy is analytical in nature ie., it involves finding the
dots ; while strategy formation involves connecting the
dots via strategic thinking.

25.  Strategic Planning Process are ;
oInputs–interviews from key executives , review of
publicly available docs on the market, primary
research(ie. visiting or observing competitive place of
business or comparing prices), industry studies etc.
oother inputs–understanding values of board
,shareholders & senior management(may be captured
in org. vision and mission statements.

26. oactivities-meetings and other communication
among the organization's leaders and personnel to
develop a common understanding regarding the
org.strategyusing following tools;
1. pest analysis, 4.SWOT analysis.
2. scenario planning, 5. Growth share matrix.
3. porter five force analysis,6. Balance scorecards &
strategy maps.

27. oOutcomes–strategic plan documents, a guiding
policy for achieving the org.’s goal and specific
action plans.
*A strategic plan may be for multiple years & updated
periodically.
oOutputs–Implementation of the Strategy plan.
-there will also be unintended outcomes
which need to be attended to &
understood for strategy development.

28. Formulation of Competitive Strategy includes
consideration of following key elements;
1.Company strengths and weaknesses;
2.Personal values of the key implementers (i.e.,
management and the board);
3. Industry opportunities and threats; and
4. Broader societal expectations.
[3]
(MichealPorter, 1980)

29. The former two elements relate to factors internal to
the company (i.e., the internal environment) while
the latter two elements relate to factors external to the
company (i.e., the external environment).
These elements are considered throughout the strategic
planning process.

30. Some elements of the process may be continuous ,
others may be executed as discrete projects with a
definitive start and end during a period(projects).
End result(output) is the organisation strategy plan.

31. Instructions :
1)Develop the mission and objectives for this project.
2)Conduct an external analysis.
3)List the strengths, weaknesses, opportunities and threats (SWOT Analysis).
4)Develop milestones needed to complete this project.
5)Address major issues that may be faced during the project.
6)Establish a plan to overcome the major issues.
7)Assign responsibilities.
8)Set an operating budget for the project

32. Instructions:
1)Draft a mission statement. Eg. a mission statement for
a property management company might be “ABC
Properties provides property owners with assistance in managing
their properties, offering best practice that results in optimum
return of investments.“
2)Break your mission statement down into goals. Eg. Be profitable
within three years; have six properties under management within
three years and employ highly competent and professional staff.

33. 3)Develop strategies to help reach goals & action plan for
implementation.
EXAMPLE:
Goals Strategy Action Plan
Profitability Provide professional service
at least cost
Apply best practice at
minimise ops cost
Increase client-management
base
spend heavily to increase
market penetration
*Regularadvertisement
*Membership to networking
groups eg. social groups,
chamber of commerce etc.
To have highly competent &
professional staff
Continuous training &
professional development
Identify key staff training
needs & industry needs,
implement staff training
plan

34. 4.0
because it matches business strengths with marketplace
opportunities and provides direction to meet goals.
it is a road map for the business.
it includes goals & objectives of each critical area of
an organization:
management, marketing, sales, target customers,
products, services and finances.
it is a performance measuring tool.

35. 1.Executive Summary
2.Mission Statement
3.Corporate Vision
4.Industries Served
5.Customer Profiles
6.Description of all products & services
7.Competitor information
8.Organisation & Management Structure
9.Marketing Strategy
10.Key Financial Statements(balance sheet,incomestatement & cash flow
statement

36. Corporate planningis the process by which organization leaders set
the course to achieve objectives. It includes budgeting, allocation of
resources, development of strategies and delegation of responsibilities
to various departments.
An effective corporate plan is created and implemented in following
four stages ; a new idea for either improvement or expansion of
organisation, various inputsfrom all affected factions or departments
of the organisation, implementationof the plan rolled out in three
phases and continue monitoringits effect on the business.
There are six(6) types of corporate plans; Initiation plans, strategy
plans, growth plans, financial plans, human resource plans and internal
departmental plans.

37. Strategic planning is one of the type of corporate plans , it provides an
organisationwith direction on achieving its mission and vision
statements within a set period of time by setting milestones and goals.
It differs from a typical plan because such planning takes the external
environment into consideration.
Strategic planning process includes;
o inputs from organisation’sboard and key executives, review of the
market and industry.
o activities including team leaders and personnel meetings and SWOT
analysis
o outcomes is the finished strategy plan document and
o outputs is the implementation of the strategy plan

38. 1. Contributing Writer.Process of corporate planning.eHowContributor. Retrieve July 15,2015
from http://www.ehow.com/how-does_5233873_process-corporate-planning.html
2. Kokemuller,N.Whatis the meaning of Corporate Planning? eHowContributor. Retrieve July
15,2015 from http://www.ehow.com/facts_5566059_meaning-corporate-planning.html
3. Larmore,C.Howto conduct strategic planning. eHowContributor. Retrieve July 15,2015 from
http://www.ehow.com/how_7625541_conduct-strategic-planning-
project.html
4.Larmore,C.Howto conduct strategic planning for a project. eHowContributor. Retrieve July
15,2015 from http://www.ehow.com/how_7625541_conduct-strategic-planning-project.html
5. Larmore,C. Steps of strategic planning process. eHowContributor .Retrieve July 15,2015 from
http://www.ehow.com/how_7625541_conduct-strategic-planning-project.html
6. Porter, Michael E. (1980). Competitive Strategy. Free Press. ISBN0-684-84148-7.
https://en.wikipedia.org/wiki/Strategic_planning. Retrieved 15 July
,2015.

39. 7. Raghavendra,P. Types of corporate planning.eHowContributor.
http://www.ehow.com/info_7736288_types-corporate-planning.html
8. Root III,N.G.Stages in corporate planning. eHowContributor
http://www.ehow.com/info_7921228_stages-corporate-planning.html
9. Wikipedia.Strategicplanning.
en.wikipedia.org/wiki/Strategic_planning

40. 1.Define what is Corporate Planning ?
2.Define what is Strategic Planning ?
3.List the stages of Corporate Planning and briefly discuss each of them.
4.List the different types of Corporate Planning and briefly discuss each
of them.