Q.3. What are the differences between business planning and corporate planning?
Ans. Business Planning: Business planning defines the strategies the business will use to meet its goals and missions. Business planning provides details on the business operations, products and services, and marketing strategies as it relates to the inclusive industry. This process expounds the operation strategies from short and long-term views while focusing on the overall activity of the company. The business plan does not identify specific employee strategies but rather provides industry strategies.
Corporate Planning: Corporate planning defines the strategies that the employees will take to meet the business goals and missions. This type of planning, also known as strategic planning focuses on staff responsibilities and procedures. As with business planning, strategic planning requires a close look at the company’s missions, strengths and weaknesses. However, corporate planning identifies the step-by-step process of the business, such as the actual steps the staff will take to counteract challenges, train employees and achieve accomplishments. Corporate planning also provides specific, measurable goals with realistic timelines.
Interdependency: Business planning and corporate planning are interdependent. Although business planning can exist without corporate planning, the goals of the business plan are much more attainable than corporate planning. However, without business planning, the overall goals and missions of the business are not clear. Therefore, the corporate planning becomes incomplete.
Effects: There are many effects of business and corporate planning. Not only does the planning process help businesses to succeed, it helps businesses to determine when new directions and changes are needed. A close analysis can result in early recognition of potential issues and dangers, as well as help the company to quickly adapt to customer demand and needs.
Q.4. What are the five main factors of corporate goals?
Ans. Factors Determining Corporate Goals
1. Industrial Performance: Industrial performance is one of the key considerations for a management to develop its own expectations. Data regarding such performance can be obtained from stock exchange bulletins, industry journals etc. Analysis of performance can centre around the range of performance of different companies and understanding the reasons for their relatively better or worse performance. Management can identify through such analysis, the companies which are more like their own terms of product, process and client group and it is expressed as that performance of their own company that should be comparable to the performance of these companies.