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ASEC/SLDI FINANCIAL
MANAGEMENT COURSE
TOPIC:
STRATEGIC PLANNING,
OPERATIONAL PLANNING
AND
BUSINESS PLANNING
MODULE 5
BY: CORAT AFRICA
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
STRATEGIC, OPERATIONAL AND
BUSINESS PLANNING
1. Strategic planning
 This is a high level process which deals
with establishing the vision and mission of
the organization, its values, key objectives
and focus areas, and key performance
indicators
 It is more futuristic and broader in scope
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
Strategic planning cont- It is part of the corporate governance process as
the plan is signed off at the Board level
 The strategic plan process is better accomplished
with the help of a facilitator, particularly if it is
being done for the first time
 It is an organization’s summary of the
development process and the presentation of core
directions
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
2.
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Operational planning
This is more routine to ensure daily
operations are running
It focuses on the day-to-day operations
with no more than a 12 month cycle
This is an annual work plan explaining
how the goals of the strategic plan will be
implemented and what budget and
processes are required
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
Operational planning cont—
 Focuses on adjusting and developing
controls, increasing efficiencies and
reducing time and costs
 The purpose of an operational plan is to
effectively execute the goals identified in
the strategic plan
 An operational plan shows where to focus
attention
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING

Operational plans answer key questions
like who is doing what? What are the day
to day activities? What are the labor
requirements? What are the sources of raw
materials?
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
3.
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Business planning
Business planning is the process which carries
the strategic plan to each level and functional
area of the organization, ensuring alignment with
the strategic plan
If the business plans of the functional areas are
not aligned to the
A business plan which deals with operational
issues will lack the objectives to address the
strategic issues
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING

Business plans have greater descriptive
detail than a strategic plan and may
include the business cases for specific
courses of action
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STRATEGIC, OPERATIONAL &
BUSINESS PLANNING
Business planning cont—
 A business plan will include sections such
as market analysis, competitor analysis,
product plan, strengths, weaknesses,
opportunities and threats analysis, risk
management and other sections unique to
the organization.