Business planning. Concept of planning (most important)

Lecture notes, cheat sheets
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Business planning. Concept of planning (most important)

Lecture notes, cheat sheets

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1. CONCEPT OF PLANNING

Planning, being the norm of any entrepreneurial activity, is necessary to anticipate the future situation and to effectively achieve the goal. The planning process involves analysis and decision making and takes time and mental effort. Time is a special irreplaceable kind of resource.

Planning has developed methods, uses a scientific approach, improves and applies new methods and improvements, therefore planning is a science.

Due to the fact that specialists use different methods, forms, types and elements of planning, depending on the specific situation, their knowledge, personal qualities, style and approach, planning is an art.

Planning as an activity is the process of developing actions to achieve a goal.

Planning answers the following questions:

▪ What to do and for whom (product)?

▪ How to do it (technology, action program)?

▪ When to do it?

▪ How much to do?

Planning also helps to evaluate the actions already taken (answers questions: what has already been done, what resources are already available, etc.).

The main objectives of the planning process:

1) optimization of all types of costs;

2) coordination of team actions;

3) anticipation of events in order to reduce risk and unreasonable losses;

4) readiness to quickly respond to environmental changes.

Planning can be carried out with a different time span - planning horizon, which happens:

▪ long-term - 5-10 years;

▪ medium-term - 2-5 years;

▪ short-term - up to 2 years.

Planning must adhere to certain principles:

1. Continuity. It is necessary to constantly plan and adjust plans, as goals and situations can change.

2. Coordination and integration. Coordination covers the interaction of all organizational units of the same level, and integration is necessary for the coherence of actions between units of different levels.

3. Consistency. The enterprise in the external environment should be taken into account in the complex.

4. Scientific. It is necessary to apply scientific methods in planning.

Planning stages:

1) definition of the mission - the main focus of action;

2) forecasting - assessment of the future state of external and internal factors;

3) formulation of goals (desired results). The goal should be clear, specific, measurable (the answer to the question "what"). The ideal is an unattainable goal;

4) programming - creating action plans, programs, work schedules - plans in time sequence (answering the questions "when", "how");

5) budgeting - determining the scope of work and the distribution of resources by type of work (the answer to the question "how much");

b) formation of enterprise policy - drawing up general rules for the activity of the enterprise;

7) formation of action procedures (business processes).

>> Forward: The subject of planning. The essence and structure of planning objects in the organization

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