Rational Planning Model [Rpm]

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The rational planning model is a model commonly uses for the business evaluations and strategic decision making purposes. Specially in CIMA examination focus rational planning model as a critical subjects for management students.

But there are only few points to be remembering for rational planning model. The subject of Enterprise strategy [E3] and enterprise management [E2] are mostly focus on rational planning model.

Its containing of

Mission and Objectives
Position Audit
Environmental Analysis
Co-operate appraisal
Strategic option generation
Strategic option evaluation and choice
Strategic implementation
Review and control

From review and control again continues with position audit and the environmental analysis.[its repeat the same process again and again] Mission and Objectives

The mission and objectives are related to create the mission and objective of the organisations. When making the mission and objective the following should be considers,

Importance of Stakeholders and stakeholders power and interest

Key players, keep satisfied, keep inform, minimal efforts.

Cooperate social responsibility[CSR polices ],
Critical success factors [CSF].
Setting objectives for profit making organisations and non profit making organisations.

Environmental Analysis

The environmental analysis is analysis of the environmental factors how it’s help or affect the business environment. This is fully depending on the risk profile of the organisation.

Importance of business environments

PESTEL or PEST approach and Michel porter 5 Force theory,

Competitor analysis and reactions,
Environmental uncertainty,
Domestic and international environmental affects.

Position Audit

SWOT analysis,

Strengths, weaknesses, opportunities and threats.

Value chain analysis,

Primary activities and the secondary activities, how its help to identified the position of...
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