Strategic Planning

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management. United Biscuits corporate objectives in their annual report of 1985 were; 'The most important objective remains the achievement of a minimum return of 20% on average capital employees, with a target return of 25%'.2 Unit objectives relate to the specific objectives of individual units within the organisation, such as a division or one company within a holding company. The unit objectives for costain group plc in their annual report of 1986 were; 'In the UK costain Homes is budgeted to sell 2'500 homes in 1987, - a figure that will put it among the top ten house builders'.3 Before the corporate and unit objectives are incorporated one must start with the mission, and the basic concepts which involve vision statement, mission statement, goals and objectives. The first thing is to establish the long-term strategic aims of the organisation, otherwise known as corporate planning. A vision statement would be drawn up first and is simply a vague sentence expressing the ...

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productivity. Therefore such goals can be taken for granted and so tell us little about the emphasis placed on the various activities of the organisation in meeting those goals. On the other hand one can say how vitally important they are. They provide a basis for planning and management control, guidelines for decision making and justification for the actions taken. The goals that the company set out in their report will be different to that received by the individuals, groups or departments of that same company. The goals will help to develop commitment of these people and so focuses attention on purposeful behaviour providing a basis for motivation and rewards.

Fig 1: FORMAL ...

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