3. Deciding the Planning Period: After formulating planning premises and long-term goals, the manager has to decide the length of business plan period. The plan of the period should be based on the nature of the business, the vision and mission of the company. Other factors, which influence the planning period are:
(a) Lead-time in the development of a new idea business/product.
(b) Time required to get back the original environment.
(c) Length of commitments already made.
4. Finding Alternative Courses of Action: After formulating the strategic plans, the topmanagement should find out the alternative courses of actions available in order to accomplish company’s mission.
5. Evaluating the Alternative Plans and Selecting a Course of Actions: The management has to evaluate the available courses of actions through SWOT analysis (strengths, weaknesses. portunities and threats) and rank the alternatives. After ranking the alternatives, the management has to select the best business plan.
6. Developing Derivative Plans: The management after selecting the best strategic plan, should formulate the other policies and plans, which are the sub-plans to the main plan. Management should involve and consult the lower level managers while formulating the derivative plans.
7. Implementation of the Business Plan: After the development and selection of the plans and derivative plans management has to take initiative steps to implement the business plans.
8. Measuring and Controlling: After the strategic plan is put into action, the management has to measure the progress of the plan and compare it with the standards, observe the deviations, if any and correct the deviations.
Q.7. What do you mean by corporate planning?
Discuss the determinants of corporate goals/objectives.
Ans. Corporate Planning: The CIMA (Chartered Institute of Management Account, UK) management accounting official terminology defines planning as, ‘The establishment of objectives and the formulation, evaluation and selection of the policies, strategies, tactics and actions required to achieve these objectives. Planning comprises long term/strategic planning and short-term operational planning. The latter usually refers to a period of one year!