BUSINESS PLAN

BY: MIGUEL TENEBRO JR.

&
CHRISTIAN BOY LIMAN
CHAPTER 3
Planning-Is the first management function and a
very essential component of management.

The following present the importance of

planning:

.Planning provides direction to all of the

organization’s human resources both managers
as well as employees.
 .Planning is
important because it reduces: it
compeles managers to consider future
events that may affect their
company.Anticipating changes and their
impact will help managers and other
workers to react to such changes
appropriately.
 .Minimizing of wastes will result if there is
proper coordination of activities due to
planning negative
practices,ineffectiveness,and ineffeciencies
could be easily detected
can be corrected or eliminated. .Establishing
goals and standards during planning may be
use for controlling,another necessary
managerial Function.
Without planning,goals and
standards will be absent and
controlling will not be possible.

“Relationship of planning to
individual and organizational
performance”
Is there a clear relationships between
planning and performance?

Although numerous researchers have

shown a generally possitive relationship
between planning and performance,it
would not be advisable,however,to judge
that organization or individuals who
formally plan have better performance
compared to those who do not plan.
Definition of terms

Planning- is a process that involves the

setting of the organizations
goals,stublishing strategies for
accomplishing those goals,and
developing plan of action or means
that managers intented to use to
achieve organizational goals.
Goal-setting- the identification of
targets or desired ends that
management wants to reach.

Vission- a mental image of what

the organizations will be in the
future,as desired by the company
management and employees.
Mission- basic purpose of an
organization and range of their
operations.

Objectives- steps needed in order

to attain desired ends.
LESSON 2
TYPES OF PLAN
>Organizational Plans
>Strategic Plans
>Operational Plans
>Long-term Plans
>Short-term Plans
>Directional Plans
>Specific Plans
>Single-use Plans
>Standing Plans
Organizational plan- can be generally decribed in
terms of comprehensiveness,length of time covered
or time frame,specificity,and frequency of use.
TYPES OF ORGANIZATIONAL PLAN
1.Comprehensiveness- refers to completeness of
planning coverage:for example:it may start from
plans that cover the entire organization,called
strategic plan,up to operational plans that apply to
a particular operational area only.
2.Specificity- refers to very detailed,clearly
defined plans wherein
objectives are clearly stated and could be
easily understood.
3.Frequency-refers to the number of times
or instances a plan maybe use.
For example,strategical plans have single
use,while operational plans are usually
standing or are use frequently or for
several times.
Strategic plans-plans that established the
organizations overall goals and apply to the
entire firm;they are broad
in scope and are the responsibility of the
CEO,and general manager of the company.

Operational plans-plans that apply to a

particular unit area only; there scope is narrow;
achievement of company goals may not be
achieved if operational plans are not clear.
Long-term plans- plans that go beyond 3
years; everyone must understand the
organizations long term plans to avoid
confusion that may divert the orgazanition
members attention.

Short-term plans- plans that cover one

year or less;such plans must lead toward
the attainment of long-term goals and are
the responsibility of the units or
department heads.
Directional plan- plans that are flexible
or give general guidelines only;
although flexible and general,these
plans must still be related to the
strategic plans.

Specific plans- plans that are clearly

stated and which have no room for
interpretation;language used must be
very understandable.
Single-use plans- plans used or stated
once only as this applies to the entire
organization;refer to the operational
plans of the firm.

Standing plans- plans that are

ongoing;provide guidines for defferent
activities done repeatedly;refer to the
identified activities of operational plan.
DEFINITION OF TERMS
Organizational plan- comprehensive plan
for the entire organization covering time
frame,frequency of use,and others.

Strategic plan- plans that establish the

organizations overall goals and apply to the
entire firm;they are broad in scope and are
the responsibility of the organizations
President or Chief Operating Officer,and
several managers.
Operational plan- plans that apply to
a particular unit area only;their
scope is narrow and prepared by
lower level managers.
3.Develop premises regarding future
conditions;anticipate future
events,generate alternative “scenarios”
for what may happen;identify for each
scenario things that may help or hinder
progress toward your goals/objectives;

4.Analyze and choose among action

alternatives;list and carefully evaluate
possible actions and choose alternative
most likely to accomplish goals/objectives.
5.Implement the plan and evaluate
results;take corrective action and revise
plans as needed.
THANK YOU
AND GOD
BLESS!!