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Differentiate between strategic planning and operational planning.

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QUESTION 1 (A) Differentiate between strategic planning and operational planning. ANSWER 1(A) Definition of strategic planning: Strategic planning is defined as plans that are organization-wide, establish overall objectives, and position an organization in terms of its environment. (Robbins and Coulter, 1996, p. 213) Definition of operational planning: Operational planning is defined as plans that specify details on how overall objectives are to be achieved. (Robbins and Coulter, 1996, p. 214) There are three main differences between the strategic plans and the operational plans and there are: 1.A.3.1 Time frame 1.A.3.2 Scope 1.A.3.3 Whether a set of organizational objectives are included. (Robbins and Coulter, 1996, p. 214) The figure below shows the involvement in planning from the manager's level in the organization. Usually operational planning are done by lower level managers or normally known as first-level managers. As the hierarchy move up top executives will be involve and concentrate in mostly strategic planning. Planning in the Hierarchy of Organizations Strategic Planning Top Executives Middle- Level Managers Operational Planning First- Level Managers (Robbins and Coulter, 1996, p. 217) Operational plans are basically plans that focus and cover the day-to-day, week-to-week and monthly operation and running of the business. It is particularly used to cover shorter periods of time and have specific details of how the overall objectives are to be achieved. When designing a set of operational plans there should have a built in flexibility so that it can quickly response to any changes in the business environment or competitors actions. Operational plans are carried out by middle- level managers and first- level managers as they are the first to see changes and in a good position to comment. Strategic plans are design and mean for long term usually for three years or more. Strategic plans involve a more in-depth and broader view of the overall organization (The need to consider more factors). Strategic planning considers both environmental factors on the outside and organization factors on the inside. ...read more.


As Mary's Fashion have financial back up the company will have the ability to employ expertise and top professionals to run the business. From decisions and knowledge of the professionals Mary's Fashion will be able to come out with plans for future expansion. An important point to note is that Mary's Fashion have already reach $3 million turnover in just three years, not forgetting that the growth is achieved without the assistance of financial back up, expertise and professionals in the company. This shows that there are huge potential for growth if all the advantages are blended in, there is certainly a growth in the near future for Mary's Fashion. All types of business ownership will have fair share of advantages and disadvantages. The disadvantages of a Private Limited Company are as follows: Firstly, disagreements and differential: If Mary's Fashion is to be turn into a Private Limited Company then she might face problems like the company actually spend more time and effort to resolve certain issues and sometimes might even lead to voting, that will express the will of the majority. Secondly, involve in more rules and regulations: Company might be involved in stricter rules and regulations when running the fashion business. Thirdly, higher tax rates: Private Limited companies are required to pay higher tax rates which will be seen as a additional cost to company's expenditure. Lastly, unlike sole proprietorship, the Private Limited Company is required to maintain proper accounting records and to summit financial statements of its annual returns to the Registry of Companies. QUESTION 2 (A)'In a public limited company, there is often a divorce between ownership and control'. Explain this statement fully. ANSWER 2(A) Ownership: When someone invest in the shares of the public limited company, he or she will be consider as one of the owner of the company, even if he or she is to buy only one share of IBM or GM stock. ...read more.


Companies that continue to ignore the green consumer or to address green issues only in a superficial way will increasingly find their sales threatened by a more environmentally aware consumer. (Lancaster and Massingham, 1994, p. 353) There are no denials that a company that shows concern, moral value and responsibility gains respect from the public, consumers and the government. The government will certainly not let off those companies who are involved in irresponsible social activities. So being green and socially responsible does pay off and with concern for environmental issues growing the importance in defining the controversial relationship between business and the environment has become even more essential. In time to come, it will be another way of running the business and capturing of new market and consumers. REFERENCES 1. Biddle, David, Harvard Business Review on Business and the Environment, HBS Press, 2000 2. Gabriel, Vincent, Management (second edition), Longman Singapore Publishers, 1989 3. Kielburger, Graig, Free The Children, Harper Perennial, 1998 4. Kotler, Philip and Armstrong, Gary, Principles of Marketing (international edition), Prentice Hall International, 1999 5. Lancaster, Geoff and Massingham, Lester, Essentials of Marketing (second edition), McGraw- Hill Book Company, 1994 6. Marconi, Joe, Crisis Marketing- when bad things happen to good companies, (second edition), NTC Business Books, 1997 7. Mobius, J. Mark, On Emerging Markets (second edition), Pitman Publishing, 1996 8. Robbins, Stephen P and Coulter, Mary, Management (sixth edition) Prentice Hall International, 1996 9. Roddick, Anita, Business as Unusual, Thorsons, 2000 10. Sawyer, Ralph D., The Seven Military Classics of Ancient China, Westview Press Inc, 1993 11. Springer, Jane, Listen To Us, The World's Working Children, Groundwood Book, 1997 12. The Straits Times, "Gates Picks The Talents Himself", August 27,1998 13. Thompson, John L., Strategy in Action, Chapman and Hall, 1995 14. Williams, Mary E., Child Labour and Sweatshops, Greenhaven Press Inc, 1999 CONTENTS PAGE 1. Question 1(A) - page 1 2. Question 1(B) - page 3 3. Question 1(C) - page 6 4. Question 2(A) - page 8 5. Question 2(B) - page 10 6. ...read more.

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