presented by Gerome Amper in MNG 106 subject

1. CARAGA STATE UNIVERSITY
College of Engineering and Information Technology
Mining Engineering Program
MNG 106
Mine Management
Instructor
Engr. Rebecca A. Santiago

2. CORPORATE
PLANNING
Presentor
GEROME L. AMPER
BSEM-5

3. CORPORATE
PLANNING

4. CORPORATE PLANNING
“Corporate planning is a systematic approach to clarifying
corporate objectives, strategic decision making and
checking progress toward objectives. A corporate plan is a
set of instructions to managers of an organization
describing what role each department is expected to fulfill
in the achievement of organization's objectives.”
(Gubbins, 2003, p. 98)

5. CORPORATE PLANNING
According to Ron Johnson, Corporate planning often ends
with a hastily prepared business plan, prepared to satisfy
debt or equity funding sources. While a plan prepared in
such a way may meet it's immediate objectives, it is near
worthless as a sound operations planning tool.

6. THE NATURE OF PLANNING
There are many instances when managers are
overwhelmed by various activities which are at times
beclouding his judgment. This must be expected since
anybody who is confronted by several situations happening
simultaneously will loose sight of the more important
concerns. To minimize mistakes in decision-
making, planning is undertaken

7. THE NATURE OF PLANNING
A plan, which is the output of planning, provides a
methodical way of achieving desired results. In the
implementation of activities, the plan serves as a useful
guide. Without the plan, some minor tasks may be
afforded major attention which may, later on, hinder the
accomplishments of activities.

8. THE NATURE OF PLANNING
According to Koontz and O’Donnell, the four basic
principles to be dealt with in understanding the nature of
planning are:
Primacy of Planning: This deals with the importance of
planning for its central role in linking all the other
managerial functions.

9. THE NATURE OF PLANNING
According to Koontz and O’Donnell, the four basic
principles to be dealt with in understanding the nature of
planning are:
Pervasiveness (to persuade planning) of Planning: This
brings out the ideas that planning is a function and
responsibility of every manager, supervisor, and foreman in
an organization.

10. THE NATURE OF PLANNING
According to Koontz and O’Donnell, the four basic
principles to be dealt with in understanding the nature of
planning are:
Contribution to Objectives: Plans are means to achieve
some ends and without planning, we can not achieve goals
and objectives of an organization.
.

11. THE NATURE OF PLANNING
According to Koontz and O’Donnell, the four basic
principles to be dealt with in understanding the nature of
planning are:
Efficiency of Planning: Least costly and more beneficial.

12. PLANNING DEFINED
Planning, according to Nickels and others, refers to “the
management function that involves anticipating future
trends and determining the best strategies and tactics to
achieve organizational objectives.” This definition is
useful because it relates the future to what could be
decided now.

13. THE NATURE OF PLANNING
The definition of Cole and Hamilton provides a better
guide on how to effectively perform this vital activity.
Planning, according to them is “deciding what will be
done, who will do it, where, when, and how it will be
done,” and the standards to which it will be done.”

14. PLANNING AT VARIOUS MANAGEMENT LEVELS
 Strategic Planning
 Intermediate Planning
 Operational Planning

17. Strategic Planning
The term strategic planning refers to the process of
determining the major goals of the organization and the
policies and strategies for obtaining and using resources to
achieve those goals.
The top management of any firm is involved in this type of
planning.

18. Strategic Planning
In strategic planning, the whole company is considered,
specifically its objectives and current resources. The
output of strategic planning is the strategic plan which
spells out “the decision about long-range goals and the
course of action to achieve these goals.”

19. Strategic Planning
MANAGEMENT LEVEL PLANNING HORIZON
Top
Management
•Chief Executive
Officer ( CEO )
•President
•Vice President
•General Manager
Strategic Planning
(one to ten years)

20. Intermediate Planning
Intermediate planning refers to “the process of
determining the contributions that subunits can make with
allocated resources.”
Under intermediate planning, the goals of a subunit are
determined and a plan is prepared to provide a guide to
the realization of the goals. The intermediate plan is
designed to support the strategic plan. This type of
planning is undertaken by middle management.

21. Intermediate Planning
MANAGEMENT LEVEL PLANNING HORIZON
Middle
Management
•Functional Managers
•Product Line
Managers
•Division Heads
Intermediate
Planning
(six months to two
years)

22. Operational Planning
The term operational planning refers to “the process of
determining how specific tasks can best be accomplished
on time with available resources.”
This type of planning is a responsibility of lower
management. It must be performed in support of strategic
plan and the intermediate plan.

23. Operational Planning
MANAGEMENT LEVEL PLANNING HORIZON
Lower
Management
•Unit Managers
•First Line Supervisors
Operational Planning
(one week to one
year)

26. The Strategic Planning Process
1. MISSION AND OBJECTIVES
The mission statement describes the company's business
vision, including the unchanging values and purpose of the
firm and forward-looking visionary goals that guide the
pursuit of future opportunities.
Guided by the business vision, the firm's leaders can define
measurable financial and strategic objectives.

27. The Strategic Planning Process
2. ENVIRONMENTAL SCAN
Includes the following components:
a. Internal/External Analysis of the firm
b. Analysis of the firm's industry
c. External macro-environment

28. The Strategic Planning Process

29. SWOT Analysis
A scan of the internal and external environment is an
important part of the strategic planning process.
Environmental factors internal to the firm usually can be
classified as strengths (S) or weaknesses (W), and those
external to the firm can be classified as opportunities (O) or
threats (T). Such an analysis of the strategic environment is
referred to as a SWOT analysis.

30. SWOT Analysis
The SWOT analysis provides information that is helpful in
matching the firm's resources and capabilities to the
competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection.

31. SWOT Analysis
Strengths
A firm's strengths are its resources and capabilities that can
be used as a basis for developing a competitive advantage.
Weaknesses
The absence of certain strengths may be viewed as a
weakness.

32. SWOT Analysis
Opportunities
The external environment analysis may reveal certain new
opportunities for profit and growth.
Threats
Changes in the external environmental also may present
threats to the firm.

33. SWOT Analysis
To see example of SWOT Analysis, click link below:

34. SWOT Matrix
A firm should not necessarily pursue the more lucrative
opportunities. Rather, it may have a better chance at
developing a competitive advantage by identifying a fit
between the firm's strengths and upcoming opportunities. In
some cases, the firm can overcome a weakness in order to
prepare itself to pursue a compelling opportunity.

35. SWOT Matrix
Strengths Weaknesses
Opportunities S-O
Strategies
W-O
Strategies
Threats S-T
Strategies
W-T
Strategies

36. SWOT Matrix
S-O strategies pursue opportunities that are a good fit to the
company's strengths.
W-Ostrategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths
to reduce its vulnerability to external strengths.
W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external
threats.

37. PEST Analysis
S-O strategies pursue opportunities that are a good fit to the
company's strengths.
W-Ostrategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths
to reduce its vulnerability to external strengths.
W-T strategies establish a defensive plan to prevent the firm's
weaknesses from making it highly susceptible to external
threats.

38. PEST Analysis
PoliticalP
EnvironmentalE
SocialS
TechnologicalT
A scan of the external macro-environment in which the
firm operates can be expressed in terms of the following
factors:

39. PEST Analysis
Political Factors
Political factors include government regulations and legal
issues and define both formal and informal rules under which
the firm must operate. Examples:
Tax policy
Employment laws
Environmental regulations
Trade restrictions and tariffs
Political stability

40. PEST Analysis
Economic Factors
Economic factors affect the purchasing power of potential
costumers and the firm's cost of capital. Examples:
Economic growth
Interest rates
Exchange rates
Inflation rate

41. PEST Analysis
Social Factors
Social factors include the demographic and cultural aspects of
the external macroenvironment. These factors affect consumer
needs and the size of potential markets. Examples:
Health consciousness
Population growth rate
Age distribution
Career attitudes
Emphasis on safety

42. PEST Analysis
Technological Factors
Technological factors can lower barriers to entry, reduce
minimum efficient production levels, and influence outsourcing
decisions. Examples:
R&D activity
Automation
Technology incentives
Rate of technological change

43. The Strategic Planning Process
3. STRATEGY FORMULATION
Given the information from the environmental scan, the firm should
match its strengths to the opportunities that it has identified, while
addressing its weaknesses and external threats.

44. The Strategic Planning Process
4. STRATEGY IMPLEMENTATION
The selected strategy is selected is implemented by means of
programs, budgets and procedures. Implementation involves
organization of the firm's resources and motivation of the
staff to achieve objectives.
The way in which the strategy is implemented can have a
significant impact on whether it will be successful.

45. The Strategic Planning Process
5. EVALUATION AND CONTROL
The implementation of the strategy must be monitored and
adjustments made as needed.
Evaluation and control include the following steps:
1. Define the parameters to be measured.
2. Define target values of those parameters.
3. Perform measurements.
4. Make necessary changes.

46. 2 b continued…
THANK YOU !