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?