Planning Overview Presentation

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Questions and Answers

What are the two key components of planning?

Defining goals and establishing strategies.

Why is analysing the external environment important for planning?

The external environment of an organisation is constantly changing, and it is important to be aware of these changes in order to plan effectively.

Which of the following are considered advantages of planning? (Select all that apply)

  • Increases creativity
  • Establishes standards to monitor progress (correct)
  • Reduces wasteful or overlapping activities (correct)
  • Provides direction (correct)
  • Helps to use resources efficiently (correct)
  • Reduces uncertainty (correct)

What are some examples of changes in the external environment that can influence an organisation's planning? (Select all that apply)

<p>Advances in technology (A), New government policy (B), The weather (C), A new competitor (E), A disaster (F), A financial crisis (G), New trends in the market (H)</p>
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Which of the following are factors considered in the micro-environment of an organization? (Select all that apply)

<p>Competitors (A), Buyers (B), Suppliers (E)</p>
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Which tool helps analyse the competitive environment of an organization, as outlined by Porter's five forces model?

<p>Porter's Five Forces Model (D)</p>
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Which tool helps analyse the broader macro-environment of an organization?

<p>PESTEL analysis (A)</p>
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What are the two main categories of plans?

<p>Strategic plans and operational plans.</p>
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Strategic plans are typically short-term and focus on specific tasks.

<p>False (B)</p>
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Operational plans focus on the organization's overall objectives.

<p>False (B)</p>
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What are the five steps of the Strategic Management Process?

<p>Implement strategies (A), Identify the organization's current mission, goals and strategies (B), Conduct internal analysis (C), Evaluate results (E), Formulate strategies (F), Conduct external analysis (H)</p>
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What is SWOT analysis?

<p>SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats.</p>
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The Strategic Management Process is a one-time process that organizations perform at the beginning of their operations.

<p>False (B)</p>
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Flashcards

What is planning?

The process of setting goals and creating strategies to achieve them.

Why is it important to analyze the external environment?

The external environment constantly changes, impacting the organisation's success.

How can we analyze the external environment?

Analyzing the external environment involves understanding both the micro (industry) and macro (economic) forces.

Planning includes defining goals and establishing strategies.

Planning involves defining goals and identifying ways to achieve them.

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Advantages of Planning

Planning provides clarity of direction, reduces uncertainty, optimizes resource use, and sets standards for progress.

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Porter's Five Forces Model

A framework for analyzing the competitive forces within a specific industry.

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PESTEL Analysis

A framework for analyzing the broad economic, political, social, technological, environmental, and legal factors that influence an organisation.

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What are strategic plans?

Plans that encompass the entire organisation and set its overall objectives, typically with a long-term perspective.

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What are operational plans?

Plans that detail how the organisation will achieve its objectives, typically with a shorter-term focus.

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What is the strategic management process?

The process that senior management follows to develop, implement, and evaluate the organisation's strategy.

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Step 1: Identify the organization's current mission, goals and strategies.

The first step in the strategic management process involves understanding the organisation's current mission, goals, and strategies.

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Step 2a: External analysis

This step involves analyzing the external environment to identify opportunities and threats.

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Opportunities

Opportunities are positive external factors that can benefit the organisation.

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Threats

Threats are negative external factors that can harm the organisation.

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Step 2b: Internal analysis

Analyzing internal aspects of the organisation to identify its strengths and weaknesses.

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Strengths

Strengths are the internal aspects that the organisation does well.

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Weaknesses

Weaknesses are the internal aspects that the organisation does not do well, or lacks the resources for.

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SWOT analysis

Combining external analysis (opportunities and threats) with internal analysis (strengths and weaknesses).

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Step 3: Formulate strategies.

The process of formulating strategies based on the SWOT analysis.

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Step 4: Implement the selected strategies.

Putting the selected strategies into action.

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Step 5: Evaluate the results.

Evaluating the effectiveness of the implemented strategies.

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The macro environment

The macro environment consists of broad factors that impact all industries and organisations.

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The micro environment

The micro environment consists of factors specific to a particular industry, directly influencing the firm's competitiveness.

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Changes in the external environment

Changes in trends, technologies, competitors, policies, weather, disasters, and financial crises.

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Mission

A clear and concise statement of the organisation's purpose, guiding its actions and decisions.

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Goals

Specific, measurable, achievable, relevant, and time-bound statements of desired outcomes.

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Strategy

The overall direction and approach the organisation takes to achieve its goals.

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Study Notes

Planning Overview

  • The presentation is about Planning, delivered by Harry Kogetsidis at the University of Nicosia, School of Business.
  • The lecture covers what planning is, why analyzing the external environment is crucial, how to analyze it, and the basic steps of planning.

What is Planning?

  • Planning involves defining goals and establishing strategies, encompassing both desired outcomes and the methods to achieve them.

Advantages of Planning

  • Planning provides direction.
  • It reduces uncertainty and wasteful or overlapping activities.
  • Planning helps effectively utilize resources and establish standards for monitoring progress.

The External Environment

  • Planning is vital because the external environment of an organization is constantly changing.
  • These changes include market trends, technological advancements, new competitors, government policies, weather events, and financial crises.

Analyzing the External Environment

  • A circular diagram illustrates the external environment with sections for general (macro) environment including political, economic, socio-cultural factors; and the competitive (micro) environment including suppliers, buyers/customers, business processes, people, structure, technology, stakeholders, finance, objectives, culture, power, substitutes and competitors.

  • Porter's Five Forces model is mentioned as a tool for analyzing the competitive environment.

  • PESTEL analysis is a tool to examine the broader macro-environment examining political, economic, socio-cultural, technological, environmental, and legal factors.

Types of Plans

  • Strategic plans apply across the entire organization, establishing long-term objectives.
  • Operational plans detail how to achieve these overall objectives, with a shorter timeframe.

The Strategic Management Process

  • The strategic management process involves steps senior management takes to develop an organization's strategy, consisting of strategic planning, implementation, and evaluation.
  • A diagram shows the sequence of these steps, beginning with identifying the organization's current mission, goals, and strategies; followed by a SWOT analysis involving external (opportunities and threats) and internal (strengths and weaknesses) analysis. This combined analysis is the core of a SWOT analysis.
  • The next steps are formulating strategies, implementing the strategies, and evaluating the results.

Steps in the Strategic Management Process

  • Step 1: Identify the organization's current mission, goals, and strategies.
  • Step 2 (a & b): External and internal analysis.
    • External analysis identifies the opportunities and threats in the external environment, using tools such as Porter's Five Forces and PESTEL analysis to analyze factors like political, economic, social, technological, environmental and legal aspects.
    • Internal analysis identifies the organization's strengths and weaknesses, examining internal capabilities and resources.
  • Step 3: Formulate strategies.
  • Step 4: Implement the strategies.
  • Step 5: Evaluate results.

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