This document discusses various aspects of planning and strategy formulation for organizations. It covers topics like the definition of planning, its benefits, the planning process, setting objectives, and developing strategies. Strategy is defined as determining long term goals and adopting plans to achieve them. The document discusses analyzing the internal and external environment, developing different types of strategies based on strengths, weaknesses, opportunities and threats, and periodically reviewing strategies.

1. Jitin Kollamkudy

2.  Planning
 Organizing
 Staffing
 Leading/Directing
 Controlling

3. Planning involves the determination of future
course of action, that is why an action what is
to done, how to de done and when to be
done
“Planning bridges the gap from where we are
to where we want to go. It makes it possible
for things to occur which would not otherwise
happen”
-Koontz and O'Donnell

4.  Planning provides directions
 Planning reduces the risks of uncertainty
 Planning reduces overlapping and wasteful
activities
 Planning provides innovative ideas
 Planning facilitates decision making
 Planning establishes standards for controlling

5.  Being aware of opportunity
 Setting objectives or goals
 Considering planning premises
 Identifying alternatives
 Comparing alternatives in light of goals
 Choosing an alternative
 Formulating supporting plans
 Quantifying plans by making budgets

6.  Objectives were defined earlier as the
important ends toward which organizational
& individual activities are directed.

7. Nature of objectives
 Hierarchy of objectives
 Multiplicity of objectives
 Quantitative & Qualitative objectives

8.  Strategy can be defined as determination of
basic long term goals and objectives of an
enterprise and the adoption of course of
action and allocation of resources necessary
for carrying out these goals.

9.  Strategy is a single use plan made to meet
the challenge of a specific situation; when
situation changes ,the strategy becomes
outdated.
 It is a comprehensive & unified action plan
drawn to seek specific objectives in changed
situation.

10.  Strategy formulation is an intellectual
process that calls for use of analytical
abilities, imagination and creativity on the
part of managers.

11.  DETERMINING MISSION AND OBJECTIVES
OFTHE ORGANIZATION
 The organizational mission and objectives
serve as the basis to develop a suitable
strategy.
 SWOT ANALYSIS
 SWOT is an acronym for strengths,
weaknesses,opportunities and threats.

12.  The term’ business policy’ is used
interchangeably with ‘strategic
management'. It is because business policy
provides a broad framework within which the
corporate plans are made.

13.  Policies are formulated at the top level of the
organization. But with regard to functional &
operational policies, the co-operation of
lower level managers is also sought.

14.  Identification of Need.
 Collection of Required Information.
 Discovery ofTentative Policy Proposal.
 Evaluation of an Alternative.
 Approval & Application of Policy.
 Policy Review& Appraisal.

15.  Like all other plans, this strategy also needs
periodic review & evaluation.This is done to
ensure that it is implemented as effectively as
possible.

16.  Internal Consistency.
 Consistency with Environment.
 Appropriateness of strategy in the Light of
Available Resources.
 Acceptable Degree of Risk Involved in
Strategy.
 Appropriateness ofTime Horizons of
Strategy.
 Workability of Strategy.

17.  It’s a modern tool for analysis of the situation.
 TheTOWS matrix has been introduced for
analyzing the competitive situation of the
company .

19.  TheWT strategy aims to minimize both
weaknesses & threats and maybe called the
Mini-Mini.
 TheWO strategy attempts to minimize the
weaknesses & maximize the opportunities.

20.  The ST strategy is based on using the
organization’s strengths to deal with threats
in the environment.
 The SO strategy which capitalizes on a
company’s strengths to take advantage of
opportunities ,is the most desirable.

21.  It focus on opportunities
 It focus on the uncontested market by
offering a product or service that is unique in
a market space where there is no competitor.
 It helps to make the competition irrelevant.

22.  Identify & eliminate those factors that may
be unimportant to the buyer.
 If elimination is not an option, consider
reducing those factors.
 Raise or strengthen those factors that are
unique.
 Create new or unique factors that are
wanted by the buyers but are ignored by
the competitors.

23.  This analysis becomes the basis for
formulating generic strategies.
1. Industry analysis
2. Overall cost leadership strategy
3. Differentiation strategy
4. Focused strategy