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12. Planning.

Company planning as a key activity of top management. The main steps in planning. Types of plans. The purpose of corporate plan. SWOT analysis.

Company planning as a key activity of top management

Planning is the process of determining in advance what should be accomplished and how it should be done.

The top management of a company have some unique responsibilities. One of the key tasks is to make major decisions affecting the future of the company. These strategic decisions determine where the company is going and how it will get there.

Before doing any kind of strategic planning, the manager must decide what is the mission and purpose of their business. They also need to decide what it should be in the future.

Before deciding strategies, the planners have to look at the company’s present have to look at the company’s present performance and at any external factors which might affect its future.

To do this it carries out an analysis, called a SWOT analysis (strength, weakness, opportunities and threats).

First, the organization examines its resources, financial, human, products, facilities. It looks at performance indicators like market share, sales revenue output and productivity. Next, the company looks at the external factors, from the point of view of opportunities and threats. Having completed the SWOT analysis, the company can evaluate its objectives and perhaps work out new ones.

The main steps in planning the company’s future:

1) Do a strategic profile;

2) Study what is going on in the environment that is a key to your business;

3) make strategic predictions (forecast);

4) Perform a resource audit (SWOT analysis);

5) Define the strategic options;

6) Negotiate the choice;

7) Make a strategic choice.

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