Business Planning Martyna Mikołajek  - PowerPoint Presentation

1. Business PlanningMartyna Mikołajek M.Sc.Management Financial Facility Institute of Economic Sciences

2. Office hoursE-mail:martyna.mikolajek@uwr.edu.plRoom:106C??

3. Recommended readingGraham Friend, Stefan Zehle, Guide to Business Planning, The Economist Newspaper Ltd, UK 2004.Lecture’s presentations

4. Lecture 1Planning as a management function

5. ManagementManagement is the all activities aimed at the effective use of human resources and material resources undertaken to achieve previously defined goals.

6. Management process we can divide into four basic functions:PlanningControllingOrganizingDirecting

7. PlanningPlanning is the definition of goals for the company / enterprises.

8. PlanningPlanning should be the starting point for undertaking any activities in the management of the organization, team or project. The planning should include:recognize and understand the current situation,predict future changes in the situation,

9. Planningdefine the goals to be achieved,define the necessary resources (technical, human, financial, etc.),formulate actions necessary to achieve goals,predict the consequences of taking and not taking action,define the method of monitoring and controlling the implementation of plans.

10. PlanningOne-time plans:

11. ProgramsPrograms: The program is a one-time plan for a wider set of activities. It may include the procedures needed to launch a new product range, launch a new plant or sales outlet, or change the company's appointment.

12. Projects

13. Permanently PlansWhile one-off plans are used in unique situations. A continuous plan is used for activities repeated regularly from time to time. Continuous plans can greatly improve efficiency by standardizing the decision-making process. The basic types of such plans are policy guidelines, standard procedures as well as rules of conduct.

14. Policy guidelinesPolicy guidelines, as a general guide, are the most general form of a continuous plan. They define the general reaction of the organization to a specific problem or situation. Policy guidelines can also describe the right way to deal with exceptions.

15. Standard proceduresAnother type of continuous plan is the standard operating procedure. It is more specific than the policy guidelines, because it describes the way in which certain conditions are handled.

16. Rules of conductThe narrowest type of continuous plans are rules and rules of conduct. They describe exactly how to perform specific activities. In various situations, they play the role of a direct basis by making decisions. For example, all McDonalds restaurants usually prohibit the use of company phones by customers. Of course, in most organizations, a senior manager may suspend or bend the recipe. Regulations and regulations may become a problem if they are excessive or are used too rigidly.

17. Rules of conductIn many respects the rules and rules of conduct and standard operating procedures are similar. Both of them have a rather narrow scope and can substitute for the decision-making process. In general, however, standard procedures describe the sequence of action, while the rules and rules of conduct focus on one type of activity.

18. Planning timeShort-term plansLong-term plansMedium-term plans

19. Planning timeThe long-term plan covers a period of many years, perhaps even several decades. Big companies like General Motors Copr. And Wxxon Corporatiom, usually develop plans for 10-20 years. The range of long-term planning varies between organizations. Organizational managers operating in a complex, changeable environment face a special dilemma.

20. Planning time These organizations will probably have to plan in a longer time horizon than organizations in a less dynamic environment, but at the same time it is the complexity of their surroundings that hinders long-term planning. Therefore, managers in these companies develop long-term plans, and at the same time they must constantly observe their surroundings.

21. Planning time Medium-term plans: The medium-term plan is slightly less hypothetical and me exposed to changes than the long-term plan. Medium-term plans usually cover periods of one to five years and are of particular relevance to mid-level and first-line managers. Generally, they are formulated in parallel to tactical plans. For many organizations, medium-term planning has become a central element of planning activity.

22. Planning time Medium-term plans: The medium-term plan is slightly less hypothetical and me exposed to changes than the long-term plan. Medium-term plans usually cover periods of one to five years and are of particular relevance to mid-level and first-line managers. Generally, they are formulated in parallel to tactical plans. For many organizations, medium-term planning has become a central element of planning activity.

23. Planning timeShort-term plans: The manager also develops a short-term plan. Set for a period of one year or less. Such plans have a significant impact on the manager's daily activities. They occur in two basic forms.

24. PLANNING OF SITUATIONS UNDESIGNEDAnother important type of planning is the development of plans for unforeseen (emergency) situations. This is to define alternative directions of action that will be taken if the intended action plan is unexpectedly disrupted or outdated as a result of new circumstances.

25. PLANNING OF SITUATIONS UNDESIGNEDLet us assume that the dynamically developing food trade network has planned the construction of 100 new sales outlets in the next four years. Top management, however, realizes that changes in the economy may require a different pace of expansion. Therefore, the company develops two backup plans based on the assumption of extremely favorable and extremely unfavorable changes. First of all, the company decides that if the economy starts to grow at a rate exceeding a certain threshold, the company's growth rate will increase from 100 to 150 new stores a year. At the same time, however, the company decides that in the event of a significant increase in inflation, the expansion will be limited to 75 new stores a year. The company defines two variants of the evolution of the operating conditions to be prepared and two alternative plans (faster and slower growth)

26. OrganizingOrganizing is determination of various positions, scope of competences and their responsibilities as well as relations or connections between those positions.

27. OrganizingOrganizing consists in developing an appropriate configuration of resources that will enable efficient implementation of planned activities. Organizing includes, among others:spatial organization - e.g. optimal placement of machines and devices in the production hall division of work - division of tasks in a way that ensures full use of employees, without downtime, but also without overloading,

28. Organizingdevelopment of the organizational structure - the organizational structure links individual work positions in organizational units (eg departments, speeches, departments, divisions), enables the awarding of managerial positions,delegating decision-making powers and responsibilities - managers may delegate some of their rights and responsibilities to subordinates if employees have appropriate competences,

29. Organizingdevelopment of processes - the process is a sequence of tasks carried out in a specific order and leading to the achievement of the stated goals. Organizing tasks into processes helps to improve the efficiency of tasks implementation,coordinating activities in time and space,construction of teams - many organizations appreciate today's team work instead of individual execution of tasks by employees,providing information - an efficient communication and information system is important for the proper functioning of the company.

30. DirectingDirecting is issuing appropriate commands and orders

31. DirectingDirecting consists in modifying the attitudes of subordinates in such a way that they achieve designated or agreed goals. Nowadays, it is believed that a manager should be a leader, i.e. lead employees to achieve goals. Leadership is due to many factors, including:formal authority - authority of a given manager,acceptance of subordinates - consent to comply with the decisions of the manager-leader,charisma - an authority resulting from experience and approach to employees,high professional competence,ethical attitude and value system.

32. DirectingAn effective leader should be involved in the functioning of the organization, improve his / her competences, demonstrate empathy towards employees, be open to other and creative ideas, flexibly change the way of acting along with changing internal and external conditions. Important skills are the ability to motivate and manage conflict.

33. ControllingControlling is checking through budgets audits, reports, visits and review of a situation involving the execution of issued business orders and achieved previously set goals.

34. ControllingControl consists in checking whether the goals set by the management in the planning process have been achieved. Using the control, it is possible to identify errors, indicate the possibilities of better performance of tasks in the future, improvement.

35. Human resource Managementthis term can be generally defined as a strategic, homogeneous and coherent method of managing the most valuable capital of each organization - people who, by personal and collective effort, contribute to the implementation of all objectives set by the organization, thereby strengthening its competitive advantage.

36. Production managementsetting goals in the scope of the company's production activities and achieving them by implementing basic management functions, i.e. planning, organizing stimulation and control.

37. Production managementManufacturing management covers the vast field of human activity, consisting in the processing of raw materials and materials by means of machinery and equipment, and with the help of people to produce specific products. Production is the basic part of the company's business.

38. Marketing managementis based on a general marketing philosophy as an activity aiming to achieve its own goals by actively shaping the market and best meeting customer needs.Marketing management task is to shape demand in its structure and time to enable implementation company goals.

39. Marketing managementAs the organization is connected with the markets on which it operates, the tasks of marketing should also include shaping: - terms of purchase (materials, raw materials, workforce, goods) - relationships inside the company (internal marketing) - relations with the environment (competitors, media , suppliers, social and local government organizations

40. Operational managementOperational management is a function responsible for all product development activities that can be both good and services. Operational management is therefore responsible for:collecting various input ingredients,processing into finished products.

41. Operational managementThe above very broad definition indicates a huge scope of operational management, covering such elements as resource and resource planning, organizing, allocating resources, etc.

42. Strategic managementCorporate level strategyStrategy at the functional levelStrategy at the level of a business unit

43. Strategic managementit is an information and decision process (assisted by planning, organization and control functions), the purpose of which is to resolve key operational problems of the enterprise, its survival and development, with particular emphasis on the interactions of the environment and node factors of its own production potential.

44. Strategic managementStrategy at the level of a business unit:

45. Strategic managementMany corporations operate in various fields, and their bosses often have difficulty organizing varied and complex activities. One of the ways to solve this problem is to create strategic business units. In this organizational system, similar activities are gathered into larger groups and treated as a single enterprise. At the corporate level, a set of guidelines for this strategy is established that develop their own strategies. The corporate headquarters then analyzes the plans of individual strategy and, if necessary, negotiates changes. 

46. Strategic managementStrategy at the functional level:

47. Strategic managementCorporate level strategy:

48. Why goals are so important to the organization?Goals provide us with a sense of direction. With no purpose, individuals and their organizations tend to wander, reacting to changes in the environment without clear awareness of what they would really like to achieve. By setting goals, people and their organizations mobilize and gain a source of motivation that helps them overcome the inevitable obstacles.

49. Why goals are so important to the organization?Goals influence the concentration of our efforts. Every human being and organization has limited resources and a wide range of possible ways to use them. By choosing one goal or a set of related goals, we set priorities and engage in a specific way of using our limited resources. This is especially important in an organization where managers have to coordinate the activities of many other people.

50. Why goals are so important to the organization?Goals set our plans and decisions. Do you want to become a chess champion? Or a sports gymnastics champion? Answers to these questions will shape your short and long-term plans and help you make many important decisions. People in organizations have similar decisions that can be explained, they ask themselves: What is our goal? Will this activity bring us closer or have we abandoned the organization's goal?

51. Why goals are so important to the organization?Goals help us evaluate progress achieved. A clearly formulated, measurable goal with a specific deadline for implementation becomes the norm of efficiency that allows both individuals and managers to assess their progress. Objectives are therefore an important element of controlling - the process of making sure that actions are commensurate with the goals and plans that have been developed to achieve these goals. If we find that we are deviating from the course or if we encounter unexpected obstacles, we can take corrective actions that modify the plan.

52. Thank you