1. Parul Institute Of Engineering & Technology
Subject code:- 150001
Name of subject:- Management-II
Name of unit:- Introduction to Strategic Management
(Topic):- How Strategic and Operational Plans Differ
Name of faculty:- Mr.Umang Soni Sir
Name of students:- 1) Vivek Patel (Roll.no- 146)
2) Sagar Pandya (Roll.no-140)

2. How Strategic & Operational Plans
Differ
 What is a strategic plan?
 Why do we put so much effort into strategic
planning?
 How do we plan strategically?

3. Strategic and Operational
Planning
What is a strategic plan?

4. Strategic and Operational
Planning
Why do we put so much effort into
strategic planning?

5. How do we plan strategically?
 A team approach  Important objectives
 SWOT  Clearly focussed
 Client input strategies
 Real priorities  Realistic actions
 Cyclical  Monitoring progress
 Using indicators

6. The Strategic Planning Framework
The University’s Strategic Plan has three levels:
1.Strategic Directions
2.University Wide Strategies
3.Cost Centre Operational Plans

7. Strategic Directions
 Provides the basis for all other planning. It is
intended to convey to stakeholders the thrust
and nature of the University

8. University Wide Strategies
 Focused strategic plans which offer direction
for key areas of University activity, identifying
University wide objectives and strategies and
informing cost centre operational plans. They
are revised progressively through the year.

9. University Wide Strategies
 Indigenous  International
Education  Marketing
 Capital Management  Public Relations
 Equity  Research
 Financial  Staffing
Management  Training and Further
 Higher Education Education
 Information and
Flexible Learning

10. Cost Centre Operational Plans
 Focus on strategies, programs, activities or
actions that will give effect to Strategic
Directions and the University wide strategies

11. The Strategic Planning Cycle
Strategic Directions
 Major review Jan - - - Aug; Minor review Mar -
- - Aug
University Wide Strategies
 Mar - - - Sept
Budget
 Apr - - - Nov
Cost Centre Operational Plans
 Aug - - - Dec
Cost Centre Budget
 Sept - - - Dec

12. Elements of Plans
Strategic Directions All levels
 Mission  Vision
 Values  Key result areas
 Strategic Themes  Key performance
indicators

13. Strategic Themes
Seek to position the University:
 Innovative and flexible delivery
 Integration of higher education and TAFE
 Distinctive niches
 Equity and access

14. How Strategic & Operational Plans
Differ
 Strategic and operational plans differ in three
major ways..
 1) Time Horizons
 2) Scope
 3) Degree of detail

15. Time Horizons
 Strategic plans tend to look ahead several
years or even decades.
 For operational plans, a year is often the
relevant time period.

16. Time Horizons
 Examples:
 At Federal Express, a strategic plan for new
information delivery services could cover, say,
five years of action.
 On other hand, is Wal-Mart’s “cross-docking”
technique for inventory replenishment ,which
addresses what happens today and tomorrow
and next week.

17. Scope
 Strategic plans affect a wide range of
organizational activities, whereas operational
plans have a narrow and more limited scope.
 The number of relationships involved is the
key difference.
 For this reason,some management writers
distinguish between strategic goals and
operational objectives.

18. Scope
 Examples
 At federal express, a strategic plan would
address the company’s presence in selected
global market-places,its financial goals,and the
necessary size of the work force.
 At small pizzeria,an operational plan would
cover the kinds and amounts of ingredients
that go into each pizza.

19. Degree of Detail
 Often strategic goals are stated in terms that
look simplistic and generic but this breadth is
necessary to direct people at firm to think of
the whole of their organization’s operations.
 On the other hand, operational plans, as
derivatives of strategic plans, are stated in
relatively finer detail.