HLL (Hindustan Lever Limited, now Hindustan Unilever Limited) acquired several brands between 1972-2002 through mergers and acquisitions to expand its product portfolio. These included Lipton, Brooke Bond, Ponds, Tata Oil Mills, Lakme, Kimberley-Clark, and Modern Foods. Planning involves determining organizational goals and how to achieve them. It provides direction, reduces uncertainty, and establishes standards for control. Planning occurs at three levels - strategic, tactical, and operational - and includes goals, plans, and contingencies to guide the organization over different time horizons.

1. PLANNING
Fundamentals

2. Starting from drinking tea to bathing soap you find the brand HLL.
* 1972 HLL acquired Lipton
* 1984 HLL acquired Brooke Bond
* 1986 HLL acquired ponds
* 1993 HLL acquired Tata Oil Mills
* 1998 HLL acquired Lakme Brand.
50:50 joint agreement with Lakme
* 1994 HLL controlled KMBRLEY CLERK corporation 50%
shares introduced Hugees Dypers
* Nepal Levers was started
* 2002 HLL acquired modern foods.

3. Overview of Goals and Plans
• Goal
A desired future state that the organization
attempts to realize.
• Plans
A blueprint specifying the resource
allocations, schedules, and other actions
necessary for attaining goals.

4. • Planning
The act of determining the organization’s
goals and the means for achieving them.

5. Purposes of Planning
• It provides direction.
• It reduces uncertainty.
• It reduces overlapping and wasteful
activities.
• Establishes goals and standards used in
controlling.

6. Mission
Statement
Strategic Goals / Plans
Senior Management
(Organization as a whole)
Tactical Goals / Plans
Middle Management
(Major division, functions)
Operational Goals / Plans
Lower Management
(Departments, individuals)

7. Goals in Organization
• Mission
The organization’s reason for existence.
• Mission statement
A broadly stated definition of the
organization’s basic business scope and
operations that distinguishes it from similar
types of organization.

8. Some of the Mission
statements…
• VOLTAS – “Profit, growth and excellence”.
• ONGC – “To stimulate continue and
accelerate efforts to develop and
maximize the contribution of the energy
sector to the economy of the country”.

9. Goals and Plans
• Strategic goals
Broad statements of where the
organization wants to be in the future; pertain
to the organization as a whole rather than to
specific divisions or departments.
• Strategic plans
The action steps by which an organization
intends to attain its strategic goals.

10. • Tactical goals
Goals that define the outcomes that
major divisions and departments must
achieve in order for the organization to
reach its overall goals.
• Tactical plans
Plans designed to help execute major
strategic plans and to accomplish a specific
part of the company’s strategy.

11. • Operational goals
Specific, measurable results expected
from departments, work groups, and
individuals within the organization.
• Operational plans
Plans developed at the organization’s
lower levels that specify action steps
toward achieving operational goals and
that support tactical planning activities.

12. Mission
President
12% return on investment
5% growth
No employee layoffs
Excellent service to customers
Manufacture both standard and custom metal products for
various applications in the machine tool industry

13. Tactical Goals
Finance V.P. Production V.P. Marketing V.P.
Keep outstanding accounts below Manufacture 1,200,000 products at Sell 1,200,000 units at average price
$500,000 average cost of $19 of $27
Keep borrowing below $1,250,000 Scrap rate of 3% or less increase Introduce 1 new product line
Provide monthly budget statements manufacturing productivity by 2% Increase sales by 5% in new
for statements Resolve employee grievances within market areas
Have delinquent accounts of no more 3 working days open 1 new sales office
than 2% of total Attain market share of 19%

14. Operational Goals
Accounts Receivable Manager: Supervisor – Automatic Machines : Sales Manager – Region 1:
Issue Invoices within 5 days of sale Produce 150,000 standard units at Respond to customer inquiries with
Check new customers’ credit within 1 average cost of $16 2 hours
Working day Have machine downtime of less than Meet sales quota of 120,600 units
Allow no account to be overdue more 7% Work with salespeople to:
than 5 months Achieve scrap rate of 3% or less Visit 1 new customer each day
Call delinquent accounts weekly Respond to employee Call on each large customer every 4
weeks call on each small customer
every 8 weeks

15. Planning Types and Models
Among the various types and models most
important are :
• MBO
• Single use plans.
• Standing plans.
• Contingency (scenario) plans.

16. Management by Objective
“A method of Management whereby
Managers and employees define goals for
every department, project, and persons and
use them to monitor subsequent
performance.

17. Steps in MBO
1. Set goals
2. Develop action plans
3. Review Progress
4. Appraise Overall Performance

18. Single use and standing plans
Single – Use Plans
“Plans that are developed to achieve a set of
goals that are unlikely to be repeated in the
future”.
Standing Plans
“Ongoing plans used to provide guidance for
task performed repeated within the
organisation”

19. Major Types of Single use and Standing plans
Single Use Plans
Programme
• Plans for attaining a
one time
organisation goals
• Major undertaking
that may take
several years to
complete
• Large in scope may
be associated with
several projects
Standing Plans
Policy
• Broad in scope – a
General guide to
action
• Based on
organisation over
all goals / strategic
plan
• Define boundaries
within which to
make decisions

20. Major Types of Single use and Standing plans
Single Use Plans
Project
• Also a set of plans
for attaining one
time goal
• Smaller in scope
and complexity
than a programme
shorter time
horizon
• Often one part of a
large program.
Standing Plans
Rule
• Narrow its scope
• Describe How a specific
action is to be performed
• May apply to specific setting
Procedure
• Sometimes called a standard
operating procedure
• Defines a precise series of
steps to attain certain goals.

21. Contingency Plan
“Plans that define company responses
to specific situations, such as
emergencies, set backs or unexpected
conditions”.

22. The Shewhart Cycle of
Continuous Improvement
4. Act
Analyze results; put
learning into action
3. Check
Observe the results
2. DO
Carry out the
change or test
1. Plan
Decide what
changes are
desirable, and
plan a change or
test

23. Planning Time Horizon
Today 1 Year 2 Years 3 Years 4 Years 5 Years and Beyond
Short-Term Planning Intermediate-Term Planning Long-Term Planning
(Operational Goals) (Tactical Goals) (Strategic Goals)