SUBMITTED TO:-MR.

SARABJEET SINGH SURI

SUBMITTED BY:-MRIDULA MANAN
CORPORATE PLANNING:-
Corporate planning is a total system of planning which
involves the determination of the objectives for the
company as a whole and for each department of the it;
formulation of strategies for the attainment of these
objectives (all this being done against the background of
SWOT analysis); conversion of strategies into tactical plans
(or operational plans); implementation of tactical plans and
a review of the progress of tactical plans against the
corporate planning objectives
 WHY PLAN?
No matter the size of your business, it is crucial to have a plan. A plan is not only
beneficial to keep your business organized, but it can also help increase
•Clarity & Direction
•Ensure efficiency use of resources
•Provide a way of measuring progress
•Support effective decision-making
•Coordinate activities
•Allocate responsibilities
•Motivate and guide staff
PROCESS CORPORATE PLANNING:-
“Corporate planning includes the setting of objectives,
organizing the work, people and systems to enable those
objectives to be achieved, motivating through the planning
process and through the plans, measuring performance and
so controlling progress of the plans and developing people
through better decision-making, clearer objectives, more
involvement, and awareness of progress”.
(i) Environmental Analysis and Diagnosis: The first steps (which is, in fact,
the background step), involved in corporate planning is environmental
analysis and diagnosis. (A detailed account of this step is attempted
subsequently, in the discussion about corporate planning).

(ii) Determination of Objectives: All planning starts with a determination

of the objectives for the plan; and corporate planning is no exception to
this generality. In corporate planning, after environmental analysis and
diagnosis, the planners determine objectives for the company as a whole
and for each department of it; which become the beginning point of
corporate planning.
(iii) Strategy Formulation: Strategy formulation is the core aspect of
corporate planning. Strategy is, in fact, the weapon of the planner devised for
attaining objectives of corporate planning. It is easier to set objectives; it is
difficult to realize them. Strategies facilitate the attainment of objectives.

(iv) Development of Tactical Plans: Strategies are translated into action plans
called tactical plans or operational plans. Tactical plans are necessary for
implementation of strategies leading to the attainment of corporate planning
objectives. For example, if the strategy of a company is to develop the skills
and talents of manpower for realizing objectives; then designing of suitable
training programmes would amount to making tactical plans
(v) Implementation of Tactical Plans: Mere paper planning is no planning;
unless and until it is put into practice. As such, tactical plans are put into a
process of implementation, just at the right time, as decided by
management. For implementation purposes, necessary communications are
made to the operating staffing; who are also provided with necessary
facilities to implement the tactical plans.
(vi) Follow-Up-Action: After the tactical plans have been put into practice; a
review of progress is done i.e. an examination of what results are following
from the implementation of the plan and what feedback action is necessary,
for the betterment of the corporate planning process.
COMPONENTS OF CORPORATE
PLANNING:-
Mission Statement: In defining his mission statement,
the small business owner states the value he wants to
provide his customers, employees or society as a
whole.
Business Model: The concept of a business model has two
components: how the company is going to generate sales and why
the company will be profitable. The business may have several
revenue streams, such as selling products, offering service contracts
for the products and selling subscriptions to premium content on the
company’s website.
Goals: Goals, or objectives as they are also called, describe the end result the
business owner seeks to achieve. During the planning process, the business
owner and his management team set numerous goals -- major goals, such as
revenues and profit margin percentage, as well as goals for each department
and sometimes each individual -- to ensure that all members of the
organization put forth their best efforts and work as a cohesive team.
Strategies and Tactic: Strategies describe how the
company’s resources will be directed to accomplish the
goals. A strategy could be, for example, to sell the
company’s products through independent sales reps and
in-house salespeople. Tactics are specific steps taken to
implement each of the strategies, showing who is
responsible for implementing them and when each step
needs to be completed
Competitive Advantage: Companies succeed over the
long term because they create and maintain competitive
advantages -- aspects of their products or service levels
that deliver greater value to customers than those of
competitors. The customers perceive this greater value
and continue to do business with the company becoming
loyal, repeat customers.
Financial Forecast: The forecast is created using
spreadsheet software. The business owner builds
revenue models that calculate the expected sales --
units and dollars. He then estimates what the
expenses for the company will be -- what will it cost
to create products or services, market them and fund
the company's operations including facilities costs
and staff salaries
Risk Factors: All businesses, including small ones, face risks -- environmental
factors that may cause the company to not perform as well financially as
anticipated. It is important for the small business owner to recognize these
risks and plan ways to change his business strategy if necessary in response
to the risks. These planned responses are called contingency plans.
Exit Strategy: A business owner may have a long-term
goal of selling the company someday. How he intends to
divest the business is termed his exit strategy. Although
larger companies’ shareholders sometimes exit through
selling their shares to the public through an initial public
offering -- IPO -- a small business owner commonly exits
the business through selling it to another individual who
wants to operate it, or to a larger company.
THANK YOU