CORPORATE PLANNINGCorporate PlanningThe concept of corporate planning has in recent years gained wide currency in managementliterature. Its connotation is somewhat overlapping with the concept of strategic planning.It is, therefore necessary that the scope of corporateplanning and strategic planning should be clearly understood.Simply stated, corporate planning is a comprehensive planning process which involvescontinued formulation of objectives and the guidance of affairs towards their attainment.It is a systematic of the objectives of an organization or corporate body, determinationof appropriate targets, and formulation of practical plans by which the objectives couldbe achieved. Existing product line do not adversely affect the earnings of the firm. Thus, operationalplanning involves study of the market conditions for the existing rangeof products to maintain and improve the position of the firm in the face of competition. It isessentially a short-term exercise and deals with the existing product, market and facilities.The degree of uncertainly in operational planning is of a low order; the time span ofdiscretion is short; choice not alternatives is relatively simple. But the firm can ill-afford toignore long-term changes in the product markets. It has to look for new markets for theexisting product, develop new products, create a market for the same, and utilize theexisting facilities and expertise to meet new requirements.
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February 2023
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