Planning is the process of Setting objectives Determining what should be done to accomplish them Implementing the plan Evaluating

the results of the plan Planning helps management answer the following questions: Where are we now? How did we get here? Where would we like to be? How do we get there? Are we on course to achieve our targets?

Planning takes place at different levels of a business the main levels being: Strategic plan Sets out the overall direction for the business in broad scope Business plan The actions that a business will take to compete Operational plan Details how the overall objectives are to be achieved. Specifies what senior management expects from specific departments or functions

The Drucker Model is essentially a business model for planning applied to address the unique features of public sector organizations. Drucker's definition of "strategic planning" is what we simply call Warrior's Rules. Drucker describes strategy from a warrior's perspective of "analytical thinking and commitment of resources to action." He describes attempts at predicting the future as "foolish," because it is of little use to people who seek to "innovate and change the ways in which people work and live."

The Drucker Model focuses on results - keeping the "bottom line" of changed lives as its key element of organizational success. It seeks to establish clear measures of commitment and competence and targets performance standards as a measure of success. The "business management" orientation of the model is easy for many volunteer leaders to grasp as it often relates to their business orientation in their professional lives.

Threat of New Entry Customer loyalty, product differentiation, market share, capacity, costs (startup, switching, etc), access to distribution channels, governmentimposed barriers (regulations, licensing, tariffs, etc.), patents, specialization of knowledge or technology Threat of Substitution New or improved technology, improved efficiencies, product substitution, trade offs, switching costs; customer preferences and motivations; product differentiation; product comparison

Bargaining Power of Buyers Ease of switching, ability to substitute, buyer concentration and negotiating/bargaining power, switching costs, customer loyalty; product substitution Bargaining Power of Suppliers Supplier market share/dominance, product differentiation, switching costs, buyer concentration and negotiating/bargaining power; buyer ease of switching, product substitution Competitive Rivalry Ease of product substitution, competitive marketplace, industry concentration, pricing changes, market share, product differentiation, distribution channels, relationship management, exit barrier strategies.

The product life cycle describes the sales pattern of a product over time. Generally, the time span begins with product introduction and ends with its obsolescence and replacement. Basic Stages in the Product Life Cycle Development Stage Growth stage Maturity stage Decline stage

Introduction begins when the product is first made available for

commercial sale. During the introduction stage the product's sales are relatively low and slow to accumulate because it takes time to roll the product into multiple geographic markets, convince wholesalers and retailers to stock and sell the product, and to generate sufficient levels of customer awareness, interest, and trial. Overall, demand generally remains low during this stage. Growth Stage Eventually, as the product becomes more widely available and is adopted by more and more consumers, sales begin to grow at an increasing rate. It is at this point that the product has entered its growth stage. Sales continue to grow at an accelerated rate until the market approaches saturation i.e. the pool of potential customers for the product becomes depleted. As this saturation point is approached, the sales curve begins to tip over -- the rate of sales growth tends to decelerate. At this point, the product transitions into its third stage -- maturity.

Maturity Stage Sales continue to grow during the first part of the maturity stage, although the growth rate is much slower than before. At some point during maturity, sales reach their peak. This peak will vary in duration, depending on the product category under consideration. For some product categories, such as automobiles, cigarettes, and refrigerators, sales may remain at their peak for decades. The maturity stage is usually the longest phase of the PLC. As a result, most products at any point in time, are at maturity. This means that most decisions made by marketing managers are decisions relevant to managing mature products. This makes the maturity stage of the PLC among the most important for us to consider from a managerial perspective. Decline Stage Eventually the product enters decline. The decline phase is characterized by a steady deterioration in sales and profits. This stage culminates in the products withdrawal from the market.

The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.

Shared Values Shared values are commonly held beliefs, mindsets, and assumptions that shape how an organization behaves ,its corporate culture. Shared values are what engender trust. They are an interconnecting center of the 7Ss model. Values are the identity by which a company is known throughout its business areas, what the organization stands for and what it believes in, it central beliefs and attitudes. These values must be explicitly stated as both corporate objectives and individual values. Structure Structure is the organizational chart and associated information that shows who reports to whom and how tasks are both divided up and integrated. In other words, structures describe the hierarchy of authority and accountability in an organization, the way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc. These relationships are frequently diagrammed in organizational charts. Most organizations use some mix of structures pyramidal, matrix or networked ones - to accomplish their goals.

Strategy Strategy are plans an organization formulates to reach identified goals, and a set of decisions and actions aimed at gaining a sustainable advantage over the competition. Systems Systems define the flow of activities involved in the daily operation of business, including its core processes and its support systems. They refer to the procedures, processes and routines that are used to manage the organization and characterize how important work is to be done. Systems include: Business System Business Process Management System (BPMS) Management information system Innovation system Performance management system Financial system/capital allocation system Compensation system/reward system Customer satisfaction monitoring system

Style "Style" refers to the cultural style of the organization, how key managers behave in achieving the organization's goals, how managers collectively spend their time and attention, and how they use symbolic behavior. How management acts is more important that what management says. Staff "Staff" refers to the number and types of personnel within the organization and how companies develop employees and shape basic values. Skills "Skills" refer to the dominant distinctive capabilities and competencies of the personnel or of the organization as a whole.

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PRESENTED BY: RAUNAK AGARWAL ABHISHEK GANGWAL CHAKRAVATI BIDOLI