Management. PLANNING Internal and External Organization Environment SWOT analysis

Transcription

1 Management PLANNING Internal and External Organization Environment SWOT analysis

2 Planning 1. Definition 2. Contributions 3. Types of plans 4. Draw up the plan 5. Principles of planning

3 Planning Planning - activity focused into the future, it is the task of setting objectives, specifying how to achieve them, implementing the plan and evaluating the results. Plan is output of planning process. Core of all types of plans are the following questions: 1. Where are we? 2. Where are we going? 3. How do we get there?

4 Planning The contributions of planning Control over the future. Plans give direction to members of an organisation. Adaptation to changes in the organisation environment. Planning reduces risk and uncertainty. Planning facilitates control. leads to improvement in productivity, quality and financial results.

5 Types of plans 1. Strategic plan 2. Tactical plan 3. Operational plans by time: Short-term plans Long term plans by functional areas: Marketing Plans, Production Plans, Organizational Plans, Financial Plans, Quality Management plan, R & D plan

6 Types of plans The plans shall be linked to other plans in these aspects: Time perspective Functional perspective The perspective of organizational levels

7 How to draw up the plan 1. Intent specification 2. Collecting the necessary information resources 3. Draft of the plan 4. Submitting a draft of the plan to the particular departments of organization. 5. Gaining a view of particular departments 6. Correction of the proposal 7. Final form of the plan

8 Structure of organization plan 1. Intent specification 2. Brief introduction to the organisation activity 3. Analysis of internal and external factors of organization 4. SWOT Analysis 5. Setting objectives 6. Determination of Strategy 7. Development of strategy into tactical and operational plans 8. Financial Plan 9. Approval of a plan 10. Implementation and follow-up

9 Internal and external organization environment. SWOT analysis

10 Internal and external analysis Analysis of internal and external factors of business Where are we? What is our current state? What are the positive and negative factors of our performance? What are our strengths and weaknesses? What can be the threats and opprotunities coming from surroundings?

11 Analysis of internal environment a. Internal analysis Analysis of positive and negative factors which are a part of organisation. The output of internal analysis is the list of strength and weaknesses: Strength an aspect that organisation does well, which improves the performance of a company. Weakness an aspect that organisation does not well, it cuts its performance, it can be also the lack of certain resource.

12 Analysis of internal environment The strengths and weaknesses can be revealed in the area of: Production, organisation output Resources (employees, financial resources, material or immaterial sources technologies, equipment, ) Processes etc. The methods of internal analysis: BCG matrix 7S Analysis 4P marketing mix Benchmarking.

13 Analysis of external environment b. External analysis Analysis of positive and negative factors from the organisation surroundings. The output of external analysis is the list of opportunities and threats. Opportunity factor of external environment which effects positively the organisation performance. Opportunities can be exploited. Threat - factor of external environment which effects negatively the organisation performance. Aspects that the organisation faces.

14 Analysis of external environment The opportunities and threats can be revealed in the area of: Microenvironment aspects nearby organisation: Suppliers Customers, consumers Competitors Macroenvironment - general environment of the company including: Political environment and legislation Economic situation (macroeconomic indicators) Social, demographical aspects Technological environment

15 Analysis of external environment The methods of external analysis: Porter s five forces analysis SLEPT analysis

16 SWOT Analysis SWOT analysis a way of summarizing the organisation s main strenghts and weaknesses relative to external opportunities and threats. SWOT evaluates: the current state of the company (internal environment) and the current situation in the environment of an organisation (external environment) SWOT analysis is used to create a strategy.

17 SWOT Analysis STRENGTHS Loyal and motivated staff Product of a high quality High quality of deliveries Modern technology equipment Efficient carriage OPPORTUNITIES Market growth potential New markets abroad New suppliers VAT decrease WEAKNESSES Price level high prices Low motivation of sales team Capital spending restrictions Weak information systém Lack of warehouses THREATS Rapid technological innovation Big competitors (lower prices) New competitors Changes in Labour Code Economical instability

18 Literature BENSOUSSAN, B. E., FLEISHER, C. S. Analysis without paralysis: 10 tools to make better strategic decisions. Upper Saddle River, N.J: FT Press, ISBN DUBRIN, A. J. Essentials of management. 7th ed. Mason, OH: Thomson/South- Western, c2006. ISBN FLEISHER, C. S. a B. E. BENSOUSSAN. Strategic and competitive analysis: methods and techniques for analyzing business competition. Upper Saddle River, N.J.: Prentice Hall, c2003. ISBN MARTIN, J. T. Strategic management. 6th ed. Andover: Cengage Learning, ISBN