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What are the four types of planning? Planning is deciding what needs to be done, identifying when and how it will be done, and determining by whom it should be done. Managers use four different types of planning: strategic, tactical, operational, and contingency planning. Strategic planning involves...

What are the four types of planning? Planning is deciding what needs to be done, identifying when and how it will be done, and determining by whom it should be done. Managers use four different types of planning: strategic, tactical, operational, and contingency planning. Strategic planning involves creating long-range (one to five years), broad goals and determining the necessary resources to accomplish those goals. Tactical planning has a shorter time frame (less than one year) and more specific objectives that support the broader strategic goals. Operational planning creates specific standards, methods, policies, and procedures that are used in specific functional areas of the organization. Contingency plans identify alternative courses of action for very unusual or crisis situations. Planning > Learning Outcome 2 Planning begins by anticipating potential problems or opportunities the organization may encounter. Managers then design strategies to solve current problems, prevent future problems, or take advantage of opportunities. Managers use four basic types of planning: strategic, tactical, operational, and contingency. Strategic planning involves creating long-range, broad goals for the organization and determining what resources will be needed to accomplish those goals. Strategic plans, such as the organization’s long-term mission, are formulated by top-level managers and put into action at lower levels in the organization. Tactical planning begins the implementation of strategic plans. Tactical plans have a shorter time frame than strategic plans and more specific objectives designed to support the broader strategic goals. Operational planning creates specific standards, methods, policies, and procedures that are used in specific functional areas of the organization. Contingency plans identify alternative courses of action for very unusual or crisis situations. The contingency plan typically stipulates the chain of command, standard operating procedures, and communication channels the organization will use during an emergency. Lecture Tidbit: Your local produce department at your grocery store and your florist have at least one management problem in common – how to plan so that inventory is consumed without running out of stock. Operational planning decisions must be made regarding stocking just enough inventory to satisfy demand without being left with excess.