 Planning is the process of deciding in advance what should be accomplished & how it should be realized  It involves selecting objectives & how to achieve them  The necessity for planning arises because of the fact that business organizations have to operate, survive & progress in a highly dynamic environment where change is the rule, not the exception

 Unlike short-term planning, Strategic Planning involves an extended time-frame, deployment of a large percentage of the resources of an organization, a wide spectrum of activities & a major eventual impact  It is long term in nature  It tends to be a top management responsibility  It requires finding out weaknesses & strengths, opportunities & threat  It is the process of determining the major objectives of an organization & the policies & strategies that will govern the acquisition, use & disposition of resources to achieve those objectives  The main objective is to position the firm in an advantageous position in relation to the environment, keeping its own internal capabilities in mind

STRATEGIC (LONG RANGE) PLANS INTERMEDIATE (TACTICAL) PLANS OPERATIONAL (SHORT RANGE)PLANS LONG RANGE PLANSINTERMEDIATE PLANSSHORT RANGE PLANS TIME FRAME: 3 OR MORE YEARS TIME FRAME: 2-3 YEARS TIME FRAME: ONE YEAR TOP MANAGEMENT RESPONSIBILITY PERFORMED BY MANAGERS AT MIDDLE LEVEL DONE USUALLY AT LOWER LEVEL CONCERNED WITH BROAD OBJECTIVES CONCERNED WITH INTEGRATION OF THE DEPARTMENTS IN THE ORGANIZATION COVERS THE VARIOUS WORK OF DAY TO DAY OPERATIONS FOCUS ON PLANNING & FORECASTING FOCUS ON COORDINATION FOCUS ON CONTROL PRIMARILY

 Corporate Level Strategic Planning  Business Level Strategic Planning &  Functional Level Strategic Planning

 It is the process of defining the overall character & purpose of the organization, the business it will enter & leave & how resources will be distributed among those business  Strategy at this level is typically developed by top management (The Board of Directors, CEO etc.)  The decisions are broad-based, carry greater risk & affect most parts of the organization

 It is the planning process concerned primarily with how to manage the interests & operations of a particular unit within the organization, commonly known as SBU  SBU is a distinct business with its own set of competitors, that can be managed reasonably independently of other businesses within the organization  Generally, the heads of the respective business units develop business strategies, with approval of top management

 It is the process of determining policies & procedures for different functions of an enterprise like marketing, finance, personnel etc.  They are developed by functional managers & are typically reviewed by business heads

 Corporate level decisions tend to be value oriented, conceptual & less concrete than those at the business or functional level  These decisions are characterized by greater risks, cost & profit potential, longer time planning & greater needs for flexibility  Corporate level decisions include---- choice of business, dividend policies etc.

 It mainly involves action oriented operational issues  These decisions are made periodically & lead direct implementation of some part of the overall strategy formulated at the corporate & business levels  These are short range & involve low risk & modest costs because they are dependent on available resources  These are usually concrete & quantifiable  It includes---- generic vs. brand name labeling, general vs specific purpose production equipment manufacturing etc.

 Bridging corporate & functional level decisions  These decisions are less costly, less risky & potentially profitable than corporate level decisions, but they are more costly, more risky & potentially profitable than functional level decisions  Business level decisions include plant location, market segmentation, geographic coverage & distribution channels etc.

 In most sophisticated organizations, one can find two types of managers:  General Manager:  He is the individual who bears the responsibility for the overall performance of the organization  He has the responsibility of the survival, growth & development of the organization  He has to guide & monitor the performance of the organization with effective utilization of scarce & available resource

 Functional Manager:  He is an individual who bears the responsibility for specific business functions like human resource development, purchasing, production, sales, finance & accounting etc.