Planning is a prerequisite for any business to thrive and grow. Plans ultimately provide the organization with a sense of direction. On the basis of appropriate planning, the proprietor(s) decide on the line of business they must get into, the technologies they would use and the levels of production. There are several types of corporate planning generally used in a company.
These are also known as "Start-up Plans" and are drawn by the entrepreneur whenever he is about to venture into the business. He makes a synopsis of what he intends to do, what are his goals and aspirations for the company. This plan helps him evaluate the viability of the intended business. Once he decides to go ahead with the business, he details out what the products he would manufacture, his finances and his team of employees. He details his intended sales and profit projections for the next year.
Once the business has commenced, the management makes strategic plans. These plans help the company apportion their resources most optimally. The plans evaluate the pros and cons of choosing one method of allocation over another. The company sets attainable goals and targets for itself. Later, its performance is gauged on the basis of these targets.
These plans are made whenever the organization has an idea of diversifying into newer territories of trade. These plans help the organization evaluate its strategies, finances and resources and targets before the start of the new venture.
As the name suggests, these plans are made to analyze how best the organization must utilize its money. These plans help the organization decide on whether they must procure loans from the market or issue additional equity to raise money. Also, the company is able to evaluate what all investments it must make today for maximum profitability.
These plans help the company allocate its manpower in the most ideal manner. The company contrasts the skills required for the job and the proficiencies of its employees. It is then able to distribute the manpower most perfectly.
These plans are specific to each department in the organization. These are also called departmental plans. The departmental sets targets and timelines for each of her subordinates.