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12 Planning Company planning as a key activity of top management, the main steps in planning, swot analysis

The top management of a company has certain unique responsibilities. One of the key tasks is to affecting the future of the organization. These strategic decisions determine where the company is going and how it will get there.

Before doing any kind of strategic planning, the management must be sure of one thing. They must decide what is the mission and purpose of their business. They also need to decide what it should be in the future. Deciding the mission and purpose is the foundation of any planning exercise.

Having decided on its mission and purpose, an organization will have worked out certain more specific objectives.

However, before deciding strategies, the planners have to look at the company's present performance, and at any external factors which might affect its future.

SWOT analysis

To do this, it carries out an analysis, sometimes called a SWOT analysis (strength, weak ness, opportunities and threats).

First, the organization examines its current performance, assessing its strength and weak nesses. It looks at performance indicators like market share, sales revenue, output and productivity. It also examines its resources - financial, human, products and facilities.

Next, the company looks at external factors, from the point of view of opportunities and threats. It is trying to assess technological, social, economic and political trends in the markets where it is competing. It also examines the activities of competitors.

Having completed the SWOT analysis, the company can now evaluate its objectives and perhaps work out new ones. The remaining task is to develop appropriate to achieve the objectives. . Company planning and strategic decision making are key activities of top management.

In short, the main steps in planning are:

1 Decide on company’s overall objective; 2 To state how management intends to achieve the objectives; 3 To analyze the company’s current performance as well as external factors affecting its future; 4 To re-consider its objectives;

5 And finally, to decide what actions it should take in order to achieve its objectives.

Types of plans

There are different types of plans . They are divided as follows:

1) In terms of the level of decision-making there are plans of their own organization, plans of departments, and plans of individual employees;

2) Depending on obligation of implementation there are:

- Forward plans (which provide orientation or a concept of development);

- Recommendation plans (which includes recommendation instructions);

- Policy plans (which provide clear indicators, specific activities, timelines).

3) In focus there are thematic plans and comprehensive plans

4) Depending on the time (the length of the period), to which they are developed, there are:

- Perspective plans (which may be long-term or strategic, medium-and short-term);

- Current plans (on month or quarter);

- Operational plans (on a week or decade).

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