8 planning management activities Flashcards
planning
sets goals and objectives for the business to achieve in the future
comes up with strategies to achieve these objectives
planning 1
SWOT
strength
internal attributes and resources that support a successful outcome
aspects that the business is good at
can be developed into a competitive advantage
e.g strong brand
skilled workforce
weaknesses
internal aspects of a business that are underdeveloped and could damage the success
work ahainst a successful outcome of a business
eg poor credit control obsolete technologies
opportunities
external factors which a business could use to its afvantage
factors outside the business which have the abikity to benefit the business
eg falling exchange rate
strong economy
threats
external factors that could jeopardisw the business
could have negative impact on a business
eg EU regulations
shoetage of raw materials
samsung strengths
wide product range
strong brand
loyal customers
samsung weaknesses
high sellinf price
doesnt have it’s own operating system
samsung opportunities
increased demand in developing countries like Thailand
new product features
samsung threats
sayurated market in developed countriws
strong competition
difficult to keep up with rapid changes
planning 2
set objectives
goals that a business wants to achieve
objectives are set after a swot
planning 3
devise strategies
plans of actuon that set out the steps that a business must take to achieve its objectives
there are three main types
low cost leadership strategy
keeps costs low
sell products as cheaply as possible. This attracts price conscious consumers. Sales and profits increase
eg ryanair
differentiation strategy
products are different
stand apart from competitors
this results in consumers liking the difference sales and profuts increase
egbrand names
niche strategy
spot consumers with a specific need
make a product tailored to their needs
this results in increased sales and profits
eg ferrari
planning 4
implement the plan plan into action break it into jobs for employees communication of the plan is important employees nust back the plan and belive in it
planning 5
SMART specific measurable achievable relevant timing
type 1 manpower planning
enough workers
right skills
problems too many redundancy too little recruitment
steps
forecast future demant
calculate existing supply
adapt
benefits of manpower planning
eliminates being overstaffed
abouds being understaffed
type two cashflow forecasting
predicts expected cash inflow and cash outflow over a period of time
ensures a business will have sufficient cosrs to pay its bills in the future
short supply- have sale or cur doen on wages
cashflow forecasting benefits
highlights deficits
highlights surpluses
type three mission statement
overall objective of the business reasons for the existence of the business written document contains whay the business does now what the business will do business beliefs and valuws
type four strategic planning
long term 2-6 years
written by senior managers
mussion is broken into strategic plans
type five tactical planning
short term plan 1 year
particular sector of the business
written bu middle managers
strategic plan is broken into tactical
type six operational plan
all mgt
day to fay running of the business
type secen contingency
plan for emergencues and unforeseen events
advantages of planning
1guides the business
2 avoids future problems
3 eliminates the businesses weaknesses
4 secures caoital
5 motivates employees and mamagers
6 helps to create positive thinking between employees
7 ensures scarce recources are used eggectively
8 if plans are accurate sales and profits should increase
importance of planning
1 business environment is dynamic
2 need to be up to date with changes
3 monitor consumer patterns of spending
4 competition is high
5 starf must be continuously trained
