#MANAGEMENT PLANNING TOOLS SERIES#

Shetty, Aiming High: Competitive Benchmarking for Superior Performance, Long Range Planning. Making Forecasting More EffectiveUse simple forecasting methodsCompare each forecast with its corresponding no change forecastDont rely on a single forecasting methodDont assume that the turning points in a trend can be accurately identifiedShorten the time period covered by a forecastRemember that forecasting is a developed managerial skill that supports decision makingīenchmarkingThe search for the best practices among competitors and noncompetitors that lead to their superior performanceBy analyzing and copying these practices, firms can improve their performanceĮxhibit 8.2 Steps in BenchmarkingSource: Based on Y.K.

#MANAGEMENT PLANNING TOOLS SERIES#

OUTLINEEnvironment Assessment TechniquesEnvironmental ScanningForecastingBenchmarkingBudgetingSchedulingBreakeven AnalysisLinear ProgrammingContemporary PlanningProject ManagementScenario PlanningĪssessing the EnvironmentEnvironmental ScanningThe screening of large amounts of information to anticipate and interpret changes in the environmentCompetitor IntelligenceThe process of gathering information about competitorswho they are, what they are doing, and how their actions will affect the organizationIs not spying but rather careful attention to readily accessible information from employees, customers, suppliers, the Internet, and competitors themselvesMay involve reverse engineering of competing products to discover technical innovationsĪssessing the Environment (contd)Environmental Scanning (contd)Global ScanningScreening a broad scope of information on global forces that might affect the organizationHas value to firms with significant global interestsDraws information from sources that provide global perspectives on worldwide issues and opportunitiesĪssessing the Environment (contd)ForecastingThe part of organizational planning that involves creating predictions of outcomes based on information gathered by environmental scanningFacilitates managerial decision makingIs most accurate in stable environmentsQuantitative forecastingApplying a set of mathematical rules to a series of hard data to predict outcomes (e.g., units to be produced)Qualitative forecastingUsing expert judgments and opinions to predict less than precise outcomes (e.g., direction of the economy) Chapter 8Planning Tools and Techniqueswith Duane Weaver

Management planning tools