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Strategic Planning _Software design scenario

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  • Strategic Planning _Software design scenario

    The most basic and pervasive management function is planning. All managers at all levels plan, and the success of the performance of the other management functions depends upon this activity. Planning is deciding in advance what has to be done, who has to do it, when it has to be done, and how it is to be done. It bridges the gap from where we are to go to where we want to go. Managers plan for the allocation of resources and the work of other people, in contrast to the non-manager, who plans for his or her own activities.

    The growth of planning has shown a tremendous surge due to-

    1. Recognition by professional service firms that they must prepare for, not react to, increasingly rapid changes in the environment.
    2. Growing competition from both domestic and foreign business.
    3. The rapid growth of computer-based information systems as computer power goes up while computing cost go down
    4. Increased complexity of managing because of the growth in size, diversity of businesses, and increasing demands of a broad range of stakeholders i.e. groups impacted by the professional service business.
    5. High risk and high investment requirements of modern business.
    6. Development of planning theory, techniques and tools.

  • #2
    The system approach to planning starts with the strategic plan as the framework. The strategic plan is specific but not detailed because although specific goals may be established for distant future, detailed methods for achieving these goals must be related to current environmental conditions. The long-term goals of the strategic plan provide the constraints for setting intermediate and short-term goals. Thus the strategic plan ties together the development plan i.e. the short-range plan. The development plan focuses on the growth of the company through internal and external expansion. The operational planning linked with the functional planning and the program planning.


    • #3
      The first step in any planning is to determine the relationship of the systems to its environment. The problems that confront managers are how to identify the objectives and goals of the company and how to manage its resources in such a way as to integrate these varied interests, many of which are in apparent conflict. Thus the strategic planning process consists of two steps

      (1) Developing the strategy and (2) formulating the steps, timing, and cost required achieving the strategy.
      The expression of these steps, timing, and costs is called the Strategic Plan.


      • #4
        The strategy is the desired configuration of the firm at a future specified date. The configuration, identity, or posture of the firm may be described in terms of

        1. Scope: products, customers, markets, price-quality relationships of products, and product characteristics.
        2. Competitive edge: special market position or supply position, unique product advantages, special financial strength or credit lines, unique management or technical talents, or capacity for rapid response to competitive moves.
        3. Specification of targets: quantitative statements of acceptable and desired goals such as the size of the company, market share, profitability return on investment, assets, and the trade-off between risk and reward.
        4. Assignment of resources: allocation of long-term capital, investment, and disinvestments, emphasis on particular activities such as marketing, engineering, production, management development, geographic regions and market segments.