Quiz 4: Strategic and Operational Planning

Business

Strategic planning helps to develop a long term strategy for a firm to achieve its goals and objectives. Operational planning helps in implementing and controlling the day to day operations to achieve the goal. Importance of Strategic and Operational Planning: • Helps the top management and the other employees to keep their focus undeterred. • Reduces uncertainty, ambiguity and risk. • Helps manager to prioritize work, take better decisions about allocation and use of resources. • Integrate the human side of the resource with that of technology, raw materials and others to bring out the efficient result. • Help managers in controlling activities. First set a goal and then judge in terms of the achievement of goal. • Helps to keep a close watch on the competitor's activities and design strategies accordingly to sustain in the market place for a longer time.

Strategic planning is the process of developing a mission and long-range objectives and action plan to achieve it. It involves top and mid-level management. Planning for 2020 is a long-range planning and top management is involved in it. Thus the correct option is a Operational planning is the process of setting short range objectives and action plan to achieve it. It involves mid and front level management. Thus option 'b' is not correct.

Part 1 1. To improve our company image by the end of 2014. Criteria not met: Single, specific measurable result. Improved Objective: To make our company number one in brand recognition by the end of 2014. 2. To increase the number of customers by 10 percent. Criteria not met: Target date Improved Objective: To increase the number of customers by 10 percent by 30 th June, 2012. 3. To increase profits during 2013. Criteria not met: Single, specific measurable result and target date. Improved Objective: To increase profits by 50% by 30 th June, 2013. 4. To sell 5 percent more hot dogs and soda at the baseball game on Sunday, June 14, 2012. Criteria not met: Single, specific measurable result Improved Objectives: - To sell 5 percent more hot dogs at the baseball game on Sunday, June 14, 2012. - To sell 5 percent more soda at the baseball game on Sunday, June 14, 2012. Part 2 Educational Objectives 1. To complete my M. Phil. by March, 2014. 2. To finish the book 7 Habits of Highly Effective People by 31 st July, 2013. 3. To complete my Ph.D. by March, 2017. Personal Objectives 1. To buy Renault Duster car on the occasion of Diwali, 2013. 2. To buy a 3BHK flat by the 31 st December, 2015. 3. To visit Goa on 15 th Jan, 2014. Career Objectives 1. To become Area Manager in my company by 31 st March, 2014. 2. To earn $15000 by 31 st March, 2014. 3. To be retire in the age of 45 years. Apply it One will learn how to make objectives in personal life and professional life. In future depending on the resources and available time, one will be able to update his objectives to extract maximum results of his/her activities and achieve better balance between work and life.