Operational Planning
Operational Planning- 4th phase in the planning process. Operational Plan is a detailed plan used to provide a clear picture on how a team, section or department will contribute to the achievement of the organization’s goal.
Once the strategic plan is approved, it must be broken down into operation categories. These set of categories are:
Operational Categories
1. Product planning and development
2. Market planning
3. Production Planning
4. Manpower Planning
5. Organizational Planning
6. Financial Planning
Depending on the size of the company, a given manager may have responsibility of 1 or 2 operational categories.
Product planning and development
1. Phasing-out of products
(the company must ready their customers for their coming new products)
2. Modification of existing products and development of new ones
3. Search for and investigation of prospective companies which can be acquired
(Diversification is a corporate action in which a company purchases a controlling interest in another company in order to expand its product and service offerings).
4. Search for and investigation of foreign firms from which manufacturing licenses of new products might be acquired.
(When a company designs a new product, they can either choose to manufacture it themselves or they can license another company to produce their products)
5. Entry into new markets
(Before a company enters a new market, a thorough analysis of potential competitors and possible customers is very important. Also the timing of the entry, potential risks, etc. All of these must be thoroughly analyzed in order to create a proper entry plan)
6. Cost estimates and manpower requirements.
(the manager assigned to handle the “product planning and Development” must choose the appropriate personnel for each activities above and also create a budget for the whole activities)
Market planning
1. Specify the ff:
Geographical areas
Type of customers
Products to be sold, introduced and
Once the strategic plan is approved, it must be broken down into operation categories. These set of categories are:
Operational Categories
1. Product planning and development
2. Market planning
3. Production Planning
4. Manpower Planning
5. Organizational Planning
6. Financial Planning
Depending on the size of the company, a given manager may have responsibility of 1 or 2 operational categories.
Product planning and development
1. Phasing-out of products
(the company must ready their customers for their coming new products)
2. Modification of existing products and development of new ones
3. Search for and investigation of prospective companies which can be acquired
(Diversification is a corporate action in which a company purchases a controlling interest in another company in order to expand its product and service offerings).
4. Search for and investigation of foreign firms from which manufacturing licenses of new products might be acquired.
(When a company designs a new product, they can either choose to manufacture it themselves or they can license another company to produce their products)
5. Entry into new markets
(Before a company enters a new market, a thorough analysis of potential competitors and possible customers is very important. Also the timing of the entry, potential risks, etc. All of these must be thoroughly analyzed in order to create a proper entry plan)
6. Cost estimates and manpower requirements.
(the manager assigned to handle the “product planning and Development” must choose the appropriate personnel for each activities above and also create a budget for the whole activities)
Market planning
1. Specify the ff:
Geographical areas
Type of customers
Products to be sold, introduced and