Question

Explain the three levels in the planning process and give an example for each. Also mention how they are linked with each other and why planning is important for each of the three levels of management.

Answer 1

Answer:-

1. corporate level strategy-selection of business in which the company shouldcompete.

2. business level strategy- developing and sustaining a competitive advantage for thegoods and services that are being offered.

3. functional level- level of operating divisions and departments.

three steps in planning process:

1. determining the organization's mission and goals through analyzing informationgathered during an environmental analysis. managers can determine the direction inwhich their organization should move and function

.2. formulating strategy- analyze current situations and develop strategies. it requiresa series of steps performed in sequential order. Steps must be followed through inorder to build upon one another.

3. implementing strategy- putting plans and strategies into action in order to meetthe company's goal.

In large organizations planning usually takes place at three levels ofmanagement: corporate, business or division, and department or functional.

The corporate-level plan contains top management's decisions concerningthe organization's mission and goals, overall strategy, and structure.Corporate-level strategy specifies in which industries and nationalmarkets an organization intends to compete and why. Corporate-levelplanning and strategy are the primary responsibility of top or corporatemanagers. The corporate-level plan provides the framework within whichdivisional managers create their business-level plans.

At the business level, the managers of each division create a business-level plan that details (1) the long-term divisional goals that will allow thedivision to meet corporate goals and (2) the division's business-levelstrategy and structure necessary to achieve divisional goals. Business-level strategy outlines the specific methods a division, business unit, ororganization will use to compete effectively against its rivals in anindustry.

A functional-level plan states the goals that the managers of eachfunction will pursue to help their division attain its business-level goals,which, in turn, will allow the entire company to achieve its corporategoals. Functional-level strategy is a plan of action that managers ofindividual functions can follow to improve the ability of each function toperform its task-specific activities in ways that add value to anorganization's goods and services and thereby increase the valuecustomers receive. At the functional level, the business-level planprovides the framework within which functional managers devise theirplans.In the planning process, it is important to ensure that planning across the threedifferent levels is consistent-functional goals and strategies should be consistentwith divisional goals and strategies, which, in turn, should be consistent withcorporate goals and strategies, and vice versa.