Business Planning and Management Overview

Business Planning Martyna Miko ajek M.Sc. Management Financial Facility Instituteof EconomicSciences

Office hours E-mail:martyna.mikolajek@uwr.edu.pl Room:106C ??

Recommended reading Graham Friend, Stefan Zehle, Guide to Business Planning,The Economist Newspaper Ltd, UK 2004. Lecture spresentations

Lecture 1 Planning as a management function

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

Management process we can divide into four basic functions: Planning Organizing Directing Controlling

Planning Planning is the definition of goals for the company / enterprises.

Planning Planning 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,

Planning define 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.

Planning One-time plans: It is developed to carry out activities that in the future are unlikely to be repeated. The two most common forms of one-off plans are programs and projects. Projects Programs

Programs Programs: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.

Projects Projects: The project is reminiscent of the program, but differs from it in a narrower scope and less complexity. The project can be part of a wider program, it can also be an independent one-use plan. The projects are also used to introduce new products within the existing range or to introduce a new type of bonus to the existing remuneration system.

Permanently Plans While 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.

Policy guidelines Policy 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.

Standard procedures Another 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.

Rules of conduct The 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.

Rules of conduct In 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.

Planning time Short-term plans Long-term plans Medium-term plans

Planning time The 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.

Planning time These organizations willprobably 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.

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.

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.

Planning time Short-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. The action plan serves to implement all other plans. The response plan is a plan that will enable the company to respond to unforeseen circumstances.

PLANNING OF SITUATIONS UNDESIGNED Another 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.

PLANNING OF SITUATIONS UNDESIGNED Let 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 companydecides 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)

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

Organizing Organizing 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,

Organizing development 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,

Organizing development of processes -the process is a sequence of tasks carriedout in a specific order and leading to the achievement of the statedgoals. Organizing tasks into processes helps to improve the efficiencyof tasks implementation, coordinating activities in time and space, construction of teams -many organizations appreciate today's teamwork instead of individual execution of tasks by employees, providing information - an efficient communication and informationsystem is important for the proper functioning of the company.

Directing Directingis issuing appropriate commands and orders

Directing Directing 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.

Directing An 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.

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

Controlling Control 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. The controlling function is closely related to the planning function, because the control results constitute important input data in the next planning cycle. Knowledge, skills and social competences acquired as a result of the tasks identified during the audit constitute the resources of organizational knowledge subject to protection. The need to carry out controls should be taken into account at the planning stage. The objectives of the measure should be reflected in the specific and measurable indicators to be checked during the audit. Effective control requires a well-functioning information system providing data necessary to calculate the values of indicators constituting the basis for post-control actions (corrective or preventive decisions).

Human resource Management this 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.

Production management setting 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.

Production management Manufacturing 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.

Marketing management is 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.

Marketing management As 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

Operational management Operational 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.

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

Strategic management Strategy at the level of a business unit Corporate level strategy Strategy at the functional level

Strategic management it 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.

Strategic management Strategy at the level of a business unit: The business unit level strategy applies to the interests and operations of a particular type of activity. At this level, you are looking for answers to such questions as: How should an individual compete in his market? What should it offer products or services? What kind of clients do you want to handle? How will the resources within the unit separate? The business unit's strategy is to determine how an entity should proceed in the market, how it should operate on the given resources and in the conditions prevailing on the market.

Strategic management Many 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.

Strategic management Strategy at the functional level: Strategies at the functional level set the framework for action for functional managers, for example marketing or production, in order to jointly implement the strategies of business units and corporate strategies. Thus, functional level strategies complement the overall hierarchy of strategy

Strategic management Corporate level strategy: Strategies at the corporate level are developed by the top management supervising the interests and operations of organizations conducting more than one type of activity. At this level, the following questions are sought: What types of activities should the company deal with? What are the goals of each type of activity? How should resources be allocated to achieve these goals?

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.

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.

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?