PLANNING TOOLS AND TECHNIQUESGroup 6 :Benaya Pradipta-F0319029Reza May Kissany-F0319116
PLANNING TOOLS AND TECHNIQUESManagers use Planning tools and techniques to help their organization be more efficient andeffective.There are three module of Planning tools and techniques.Techniques For Assessing The EnvironmentTechniques For Allocating ResourcesContemporary Planning TechniquesTechniques for Assessing the EnvironmentWe discussed the importance of assessing the organization’s environment. Three techniqueshelp managers do that: environmental scanning, forecasting, and benchmarking.Environmental ScanningThe screening of information to anticipate and interpret changes in the environment. It helpsorganizations to develop their strategies accordingly.Competitor intelligence- gathering information about one’s competitors. It helps to answerMay questions: who are competitors? What are they doing? How they doing? A variety ofsources of information is easily accessible.reverse engineering- analyze a competitor’s product becomes illegal corporate spying whenproprietary\ownership materials or trade secrets are stolen fine line between what is legal andethical and what is legal but unethical internet opened vast sources of data.Global scanning- screening of information on global forces that might affect an organizationthat has global interests. Requires more extensive procedures than those used for scanning thedomestic environment it might require subscription in different international journals,information basis, periodicals.ForecastingThe second technique managers can use to assess the environment is forecasting. Forecasting isan important part of planning and managers need forecasts that will allow them to predictfuture events effectively and in a timely manner. Environmental scanning establishes the basisfor forecasts, which are predictions of outcomes. Virtually any component in an organization’senvironment can be forecasted. Let’s look at how managers forecast and the effectiveness ofthose forecasts.Forecasting TechniquesForecasting techniques fall into two categories: quantitative andqualitative.
Quantitative forecastingapplies a set of mathematical rules to a series of past data to predictoutcomes. These techniques are preferred when managers have sufficient hard data that can beused.Qualitative forecasting, in contrast, uses the judgment and opinions of knowledgeableindividuals to predict outcomes. Qualitative techniques typically are used when precise data arelimited or hard to obtain.TechniqueDescriptionApplicationQuantitativeTime series analysisFits a trend line to amathematicalequation and projectsinto thefuture by means of thisequationPredicting next quarter’ssales onthe basis of 4 years ofprevioussales dataRegression modelsPredicts one variable onthe basisof known or assumedothervariablesSeeking factors that willpredict acertain level of sales(e.g., price,advertisingexpenditures)Econometric modelsUses a set of regression