The Preparation and Implementation of the Plan

The preparation and implementation of the plan

The selected strategy for the long-run will concentrate on the key factors for success and on the major decisions required. In particular, it will be concerned with basic issues such as the selection of the kinds of products or services which should be produced, their markets, the production process and its location, and the asset structure required.

Once the strategy has been selected, it has to be expressed in more detailed plans which then become the basis for action. Responsibility for implementing the plan will fall upon the management personnel in the various divisions and departments of the organization. In this webpage, we shall examine briefly a small aspect of the planning process, namely financial planning. The reader should bear in mind that long-range planning covers every spectrum of the firm's activities, and detailed plans for all these activities will be drafted.

The continuous review and updating of the plan

Corporate planning is a continuous process which responds to feedback information. Updating may occur both on a continuous and on an annual basis. Corporate planning departments will be continually accumulating information and interpreting the significance of that information to the plan. The time-period envisaged by different firms for long-range planning purposes does vary, but it is quite normal to review the plan at the end of each year, and to incorporate those changes which are deemed to be necessary. This allows changes of every kind to be recognized and so introduces a degree of flexibility into the corporate planning process. At the end of each year, the plan must be extended for a further year so that the roll-over maintains a view of a constant time-period associated with long-range planning. The relationship between the long-range plan and the annual budget plan is very significant.

Interested in Realizable Value Accounting

Read on: The Formulation of Strategy

The position audit outlines the array of factors which should be considered when formulating a strategy for attaining organizational objectives and goals. The role of strategy, therefore, is to select the best way of getting from the present position to the goals which have been derived from the organization's objectives. The first stage in the formulation of a strategy is an analysis of the gap between the present position and the desired position, which takes into account the forecasts which will have been made. Gap analysis involves the following questions:

1 What will happen if nothing... see: The Formulation of Strategy