Operational planning.
Immediate plans (months/year).
Guides daily/weekly/monthly operations.

C. Based on Use

Single-use Plans:
- One-time situations/events. Not repeated.
- Forms: Budgets, Programmes.
Standing Plans:
- Ongoing, used repeatedly.
- Guide routine activities, provide consistency.
- Types: Policies (general guidelines), Procedures (step-by-step methods), Rules (specific instructions).

D. Based on Flexibility

Formal Planning:
- Written, structured, well-organized.
- Specific format, rules, procedures.
- Detailed, covers objectives, strategies, policies, budgets.
Informal Planning:
- Not written, in manager's mind.
- Flexible, changes easily.
- Used for small, daily decisions.

2. STRATEGIC MANAGEMENT

2.1 Concept

Continuous process of formulating, implementing, and evaluating strategies to achieve organizational goals. Ensures adaptation to environmental changes & competitive advantage.

2.2 Types of Strategies

Corporate Level Strategies:
- Growth/Expansion (diversification, M&A)
- Stability
- Retrenchment (divestment, turnaround)
- Combination
Business Level Strategies:
- Cost leadership
- Differentiation
- Focus (niche)
Functional Level Strategies:
- Marketing strategy
- HR strategy
- Financial strategy
- Production strategy

2.3 Elements of Strategic Management

Vision & Mission
Environmental Scanning (Internal: SWOT; External: PESTLE, Porter's 5 Forces)
Strategy Formulation
Strategy Implementation
Strategy Evaluation & Control

3. DECISION-MAKING

3.1 Concept

Process of choosing the best option from available alternatives. Essence of planning.

3.2 Process of Decision-Making

Identify the Problem: Recognize the gap between current & expected situation.
Analyze the Problem: Gather facts, data, reasons why problem exists.
Develop Alternatives: Identify possible solutions (creativity, brainstorming).
Evaluate Alternatives: Compare options (cost, feasibility, risks, benefits).
Choose the Best Alternative: Select most suitable & practical option.
Implement the Decision: Put into action, allocate resources, assign responsibilities.
Review the Results: Monitor outcomes, make adjustments if ineffective.

3.3 Simon's Model of Decision-Making

Introduced bounded rationality (managers cannot make perfectly logical decisions due to limited time, information, resources).

Stages:

Intelligence: Recognize & diagnose problem, collect information.
Design: Develop alternative solutions, evaluate feasibility & consequences.
Choice: Select most suitable alternative based on analysis.
Implementation (later added): Put chosen alternative into practice, evaluat