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Lesson 1 Plans & Budgets. Li, Jialong 2011-2-26. Kinds of Plans. Strategic Plans Tactical Plans Operational Plans Budgets. Strategic Plans. These plans look at the future direction of the business and the organisational priorities, missions, and long term objectives.
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Lesson 1 Plans & Budgets Li, Jialong 2011-2-26
Kinds of Plans • Strategic Plans • Tactical Plans • Operational Plans • Budgets
Strategic Plans • These plans look at the future direction of the business and the organisational priorities, missions, and long term objectives. • An example of a Strategic Plan might be a business identifying an opportunity to capture 30-50% of an existing market.
Tactical Plans • These plans are the translation of the strategic idea of where the business wants to be in the future (strategic idea) and how the business can achieve that goal. • An example of a tactical plan is a new airline has to plan to buy a certain number of planes to fit the market size estimated to be gained.
Operational Plans • Operational plans are related to the day to day and week to week activities of the business. • An example is you are studying every day to complete your study objective.
Budgets • BUDGETS ARE PLANS WITH NUMBERS. • Definition: A budget is a quantified, planned course of action over a definitive time period. • It is an attempt to estimate inputs and the costs of inputs along with associated outputs and revenues from outputs.
Creating a budget is important. because it: • Forces an organization to carefully consider the expected demand for its products and services and the resources required to meet that demand • Translates the organization's higher priorities into the appropriate resources required to achieve those priorities • Highlights potential problems in sufficient time to take corrective actions • Creates a baseline against which actual results can be compared.
Student Activity 1.1: Develop a Financial Plan for a student (you) tocomplete study at college or school. In groups of 3-4 students discuss your goals and plans for your study at your present educational campus and develop a budget for your study here. Each group will present to the class a budget for a student studying at your educational campus. The presentation could be a power point presentation or manually prepared and each member should present some of the information. Duration of the presentation should be not more than 5 minutes.
Student Activity 1.1: Develop a Financial Plan for a student (you) tocomplete study at college or school. Things that could be included in the presentation are:- • your strategic plan • your tactical plan • your operational plan • the length of the course is you have applied to do • the fees • text books • travel to and from the campus • other costs associated with coming to your study • total costs
Student Activity 1.1: Develop a Financial Plan for a student (you) tocomplete study at college or school. Questions to ask yourself about your plans include: • Why are you studying? • What do you hope to GAIN from coming to class? • Is a pass enough for you? • Will a credit pass be better? • Will only a distinction will be acceptable to you? • How does a pass in this class help with the greater goal of a Diploma or further study? • How does a pass in this class help with the greater goal of a better job than you have now? • Do you know how much money and time it will take to achieve your goals? • Do you have a plan for passing?
