Strategic Planning Essay -- Business Planning Essays

Strategic Planning 1.Appraise the formal intend endeavours at the Copley Company for the period 1981 to 1984.INTRODUCTIONCopley Manufacturing Company was primarily a manufacturer of a wide line of cutting tools and related parts and supplies. Late in 1980, Mr. Sagan, director of corporate development and Mr. Albert, executive vice president agreed that systematic formal grooming should become part of managements way of life at Copley. EXECUTIVE SUMMARYIn 1981, Copley Manufacturing Company had begun formal corporatewide planning. The declare planning was ingrained into life at Copley through a series of visits by corporate groups, planning recapitulation meetings, as well as planning response meetings. However in 1982, the planning system was modified where the planning committee separated the formal planning cycle into three phases Strategy tuition phase, Quantitative phase and Action phase. In 1983, the planning process was largely influenced and administered by Mr. Tyler, t he executive vice president. For recent development in 1984, the actual province for planning has been placed directly on the executive vice president, group vice presidents and also division managers.DISCUSSION OF SITUATION IN 1981In February 1981, Mr. Albert form a corporate planning committee as the first step to move toward a regular formal planning process. In the discussion held, the planning committee decided on the process of ingraining the formalized planning into the life at Copley.On 21st March 1981, Mr. Albert requested the division ecumenic managers to sketch out a plan for regular formal planning and schedule for starting such an sweat. The main objective of that effort is to issue guidelines for the expression of divisional provisional plans (Brethauer 1999).On 6th June 1981, the corporate groups, which always included Mr. Albert and Mr. Sagan, had visited to the divisions constantly as an initial concept of formal planning activities. In the prefatorial meetings , Mr. Albert explained the importance of the planning effort, and Mr. Sagan explained the details. On 1st October 1981, the divisions, as well as the corporate staff groups, were asked to produce and submit the five-year plans. In November and December 1981, planning review meetings were held to review the divisional plans. On 28th December 1981, th... ...981 and modified in later years, leading Copley to attain success.MThe top management had been continuously putting effort in making planning a way of life for Copley.WeaknessesMThe 1982 changes in top management were temporarily disruptive to the planning effort.MConsiderable effort was required to assimilate the acquired company and work out the split-up of Cutting Tool Division.MDivision managers had been planning largely to satisfy the requirements but had failed to commit to the plans.OpportunitiesMThe 10-year notion indicated that Copleys profit was sensitive to cyclical swings, and large cash flow could be expected.MCopley was mainly concerned in achieving future outgrowth through skill and merger.MCopley is expected to reach a minimum annual profit growth of 10 percent and a return on equity of 12.5 percent.ThreatsMThe cast down market conditions might result in Copleys extensive loss.MIt was fearful that Copley would revert to a short-term orientation if it continued along the present path.M on that point is a great tendency in American business to over manage, over plan, over staff, and over organize.