Question

Terri Towles bath shop located in old downtown Abbotsford sells locally milled kitchen, bath and summer towels spun from BC hemp fibre. At the start of every year Terri tries to develop some business plans for her employees to follow. However, this has not been going well so she has come to you for advice. Identity and briefly explain the three major forms of planning done by a company (3 marks). Identify which form(s) of planning are most critical to Terri now and explain why (2 marks).

Answer 1

Ans: The three major types of planning that a company does is:

• Strategic Plan - These are designed with the entire organization in mind and begin with an organization's mission and a path to the desired future and long-term goals of the organization. They are mostly designed for a medium to long term period.
• Tactical Plan - These plans support strategic plans by translating them into specific plans relevant to a distinct area of the organization. Tactical plans are concerned with the responsibility and functionality of lower-level departments to fulfill their parts of the strategic plan.
• Operational Plan -  They are the plans that are made by frontline, or low-level, managers. All operational plans are focused on the specific procedures and processes that occur within the lowest levels of the organization.

Terri should be focusing on strategic and tactical planning at this time. Since the sales are low due to the pandemic, Terri needs to manage her limited resources and focus on saving costs. She also needs strategic plans to cover-up the losses incurred during the pandemic.