Category: Planning

Planning principles

Planning Principles has been defined by the Land and Environment Court as “a statement of a desirable outcome from a chain of reasoning aimed at reaching or a list of appropriate matters to be considered in making a planning decision”. The principle in this planning principle has been derived from Latin word Principium which means beginning, origin or source which has been generally assumed by Dr. John Roseth as the basis for forming the chain of reasoning. He has further mentioned that the planning principle applies to a situation that arises frequently and can be applied to assist in reaching a decision in a particular case. (SC Roseth, Feb 2005) Further, the website of Woollahra Municipal Council has taken Planning Principles as a set of guiding considerations that are arose from the judgements taken from the Land and Environment Court.

Planning principles are not legally binding and they do not overcome over councils’ plans and policies. They are applied to certain cases to promote consistency as doing so can be more beneficial in long term. The LEC website states that the planning principles are applied while making certain planning decisions that includes decisions having void in policy, the policies expressed in qualitative terms allowing for more than one interpretation and in cases where policies lack clarity.

There are five themes according to SC Roseth which advises and are predominant in the planning principles. The first theme is that there is more to impact assessment than quantitative criteria like development standards being applied and then ticking off each problem based on whether they meet the requirements or not. The second theme is about the equal importance of change in impact as that of the magnitude of impact. The third one explains how balancing the magnitude of impact with the necessity and reasonableness of the proposal is important while assessing the impact. The fourth one tells about the level of design skill that has been applied to a proposal as it is also a major factor of assessments of its impacts. In such cases small impacts due to poor design are also not accepted. The fifth theme says that the impact that has been risen from a proposal not complying with planning controls is much difficult to justify than the one that has risen from a complying proposal because the people especially the neighbors who are affected by the impact of development has the expectation that it would fulfill the planning requirements. Along with this it is also necessary to be aware that the impacts also depends on the time and place. The impacts that are not acceptable now in a particular place can be acceptable in future and in different place. (SC Roseth, July 2005)

In the paper “The relevance of the Court’s Planning Principles to the DA process”, SC Moore has discussed about the development of the planning principles in appeals under ss96 and 97 of the EPA act 1979 which are the merit review proceedings to class 1 of the Court’s jurisdiction. (SC Moore, May 2009). Moore has described that planning principles are developed through the court dealing with an abstract issue rather than the merits of a particular case which is achieved through a collegiate process in the presence of the commissioners of the court and also the judges of the court at certain time to time. In this many discussions are carried out amongst the commissioners whether or not the planning principle is desirable in the identified topic. From this process a consensus is emerged initially before principles are published. And in conclusion, the judgement not only deals with the merits of the case but also sets the principle that has emerged from the consultation. The principles are designed so as to provide guidance on the particular topic as a response to collective views of the commissioners. (SC Moore, Oct 2013) The principles totally depends on the commissioner who determines the matter and the refusal is based in the fact that the principle does not cause any difficulties for a subsequent decision maker dealing with the same site.

The court has till date published more than planning principles and they all seem to fall under one or two categories. The first one being the descriptive and prescriptive category which is outcome oriented and the second one process oriented category. The first prescriptive planning principles is not based on undertaking an assessment process but is based on the outcome that is to be derived from the assessment process. (SC Moore, Oct 2013) The court ends up the case by describing the possible result, when a planning instrument intends that an undefined performance standards must be attained. For example, planning principle dealing with the access of sunlight. (SC Moore, May 2009) The second process oriented planning principles is based on how a person should carry out the proposal assessment for considering a particular issue covered by the principle. This does not speak about the outcome of the assessment. (SC Moore, Oct 2013) In this the steps to be taken in merit assessment is described which provides the necessary guidance in decision making. It also speaks about considering issues with no detailed approach in relevant planning instrument. For example, planning principles dealing with issues of views or view sharing. (SC Moore, May 2009).

To explain more about the process oriented planning principle which is broad and facultative of the assessment process, let’s consider three land and environment court cases that would explain about the process involved in the proposal assessment.

1. Tenacity Consulting v Warringah Council (2004) NSWLEC 140 at 25-29 dealing with the impacts on views.

The tenacity case includes four steps for the assessment process and suggested aspects considering each steps. This intend to describe whether a view impact is reasonable or not. While doing so the first step was the assessment of views affected by the proposal which in turn established a valued system of assessing different views on the basis of nature and their value like water view, land view, iconic views, whole view, and partial view. The second step was considering the reasonableness of the views to be retained like protection of views at side boundaries are difficult than that of front and rear, the position in which the view is enjoyed. The third step was the assessment of the extent of the impacts which had to be done for the property as a whole and not only for the view affected. In this the impacts are considered based on the rooms from where the views are being observed such as view from living and bedrooms have more value than that from kitchen. The fourth step was the assessment of the reasonableness of the proposal that has caused the impact. In this the development complying with all the planning controls are considered over the one than does not comply. In this the design is also taken into considerations to check if any possible design can solve the issue. While completing all these steps, the last principle also considers if the objectors are reluctant to accept.(SC Roseth, Feb 2005)

In this was following the four steps the assessment of the proposal is carried out and the outcome is based on the answers of each steps. In this case the result is dismissed and did not have any specific outcome so the principle that was used to follow is the process-oriented.

2. Super Studio v Waverly Council (2004) NSWLEC 91 at 5-7 dealing with the use of landscaping to protect privacy.

In this case, three planning principles were considered. The first was the acceptability of the impact depending on the extent as well as reasonableness, necessity of the impact, and the development causing it. This holds the matter of privacy for example, privacy impact can be acceptable if it was a window but a balcony cannot be accepted. The second was to give minor importance if the proposed landscaping act as a main safeguard against overlooking. The use of landscaping as a privacy screen cannot always be justified. The third principle was to relate the outcome of the proposal approval to other applications with similar cases but with different aspects. (Caselaw 2004)

In this case not all but certain part of the proposal was allowed but the assessment had three steps followed for the process and there was no any specific descriptive or perspective outcome due to which this has followed process-oriented planning principle.

3. Veloshin v Randwick Council (2007) NSWLEC 428 at 32-22 dealing with the assessment of height, bulk, and scale.

In this case, the first thing that was assessed following the process was the appropriateness of the proposal’s height, bulk, and scale in relation to the planning controls of the area. The impacts of the attributes are assessed and checked if they can be reasonably expected under the planning controls. The second thing assessed was if the proposal preserve the existing character of the area and is fit to be in the area. The other thing considered was the desirability of new character that can be intended by the planning controls. While doing so, if there is no planning controls with regards to bulk and character, then the assessment should be carried out based on the preservation of existing character or development of new one. These questions’ answers acts as steps to consider for the planning process and is process-oriented planning principle as there cannot be any specific outcome.

Introduction:

Planning is nothing but thinking about the actions and establishing the events to accomplish the wanted goals.

Planning is like charting a direction to attain the anticipated aims, you can continuously track the progress towards your objective/goals and how much is to be attained to reach your end point. Your choices of upcoming movements can be determined only when you distinguish between your position and where is your destination.

Planning Process:

Planning is the main function of management that heads all other functions. It involves the choice of what is to be done and how can it be done. This function of management is one of the most decisive ones. It includes setting the goals of the business and then handling the resources to attain goals.

An organized planning process includes the below stated points to achieve the goals.

Representation of objectives:

View of chances isn’t carefully a piece of the arranging procedure. Be that as it may, this attention to circumstances in the outside condition just as inside the association is the genuine beginning stage for arranging. It is critical to investigate conceivable future chances and see them obviously and totally.

All chiefs should know where they remain in the light of their qualities and shortcomings, comprehend the issues they wish to settle, and recognize what they gain. Setting destinations relies upon the mindfulness. Arranging requires practical conclusion of the open-door circumstance.

Establishing Goals/objectives:

This is the second step in the arranging procedure. The major hierarchical and unit targets are set in this stage. This is to be accomplished for the long haul just as for the short range. Goal determine the normal outcomes and show the end purposes of what can an individual do, the essential accentuation is to be set and what is to be cultivated by the different kinds of plans.

Authoritative destinations provide guidance to the real plans, which by mirroring these goals characterize the goal of each real division. Significant goals, thus, control the targets of subordinate divisions, etc down the line. As such, destinations from a chain of importance. The destinations of lesser offices will be increasingly exact if subdivision supervisors comprehend the general venture targets and the subsidiary objectives.

Planning Infrastructure:

After assurance of hierarchical targets, the subsequent stage is building up arranging premises that is the conditions under which arranging exercises will be attempted. Arranging premises are arranging suspicions the normal natural and interior conditions.

Along these lines arranging premises are outer and inside. Outside premises incorporate complete factors in undertaking condition like political, social, mechanical, contenders, plans and activities, government approaches. Inside components incorporate association’s strategies, assets of different kinds, and the capacity of the association to withstand the natural weight. The plans are planned in the light of both outer and inward factors.

The idea of arranging premises varies at various degrees of arranging. At the top level, it is for the most part remotely engaged. As one descends the authoritative chain of command the creation of arranging premises changes from outer to inward. The real plans both old and new will physically influence the future against which the administrators at lower units must arrangement.

Identifying Alternatives:

The fourth step in arranging is to distinguish the options. Different choices can be distinguished depending on the hierarchical destinations and arranging premises. The idea of different choices proposes that a specific goal can be accomplished through different activities.

For instance, if an association has set its targets to develop further, it tends to be accomplished in a few different ways like extending in a similar Field of business or product offering broadening in different zones, holding hands with different associations, or assuming control over another association, etc. Inside every classification, there might be a few options.

The most widely recognized issue isn’t discovering options however lessening the quantity of options with the goal that the most encouraging might be examined. Indeed, even with scientific methods and the PC, there is a farthest point to the quantity of options that can be completely inspected. The organizer should normally make a primer assessment to find the most productive potential outcomes.

Assessment of Alternatives:

The different elective game-plan ought to be examined in the light of premises and objectives. There are different strategies accessible to assess options. The assessment is to be done in the light of different elements. Model, money inflow and surge, dangers, restricted assets, expected compensation back and so forth., the choices should give us the most obvious opportunity with regards to meeting our objectives at the least cost and most elevated benefit.

Choosing best Alternative:

This is the genuine purpose of basic leadership. An examination and assessment of elective courses will unveil that at least two plans are fitting and useful. The fit one is chosen.

Preparation of Back-up plan:

In the wake of planning the essential arrangement, different arrangement is determined in order to help the primary arrangement. In an association there can be different subordinate plans like getting ready for purchasing gear, purchasing crude materials, enlisting and preparing individual, growing new item and so on. These subsidiary plans are planned out of the fundamental or primary arrangement and constantly required to help the essential arrangement.

Setting up Order of Activities:

In the wake of figuring fundamental and subordinate plans, the succession of exercises is resolved so those plans are placed without hesitation. After choices are made and arrangements are set, spending plans for different periods and divisions can be set up to give designs progressively solid importance for execution.

The general expenditure plans of an endeavor speak to the whole of pay and costs, with resultant benefit or excess, and spending plans of real monetary record things, for example, money and capital uses. Every division or program of a business or other venture can have its own spending limits, ordinarily of costs and capital consumptions, which tie into the general spending plan.

Whenever progressed admirably, spending plans become a method for including the different plans and furthermore set significant norms against which arranging progress can be estimated.

Levels of planning:

1. Strategic planning
   1. Long term and provides broad goals and direction for the entire business.
2. Operational Planning
   1. Short term and identifies specific activities for each area of business.

Strategic planning: Strategic planning show shapes a key angle in deciding how well an association can prevail in the market. It is a sort of arranging that offers direction to associations on the best way to continue as needs be with their activities, allot assets and meet objective objectives.

Arranging as the underlying stage results to foundation of the goals that describe the market and, in this way, proactively decide how they would be routed to get an upper hand. To add to that, it builds up the systems that would be pursued for an organization to accomplish its targets. It is maybe the most basic stage as it sets the stage for all the last procedures

Corporate Planning:

An association’s general vital course is regularly arranged at the corporate level. Planning at the corporate level is completed by a senior authority within an association.

This clarifies why this degree of arranging is generally alluded to as a fantastic procedure remembering that it comprises that degree of basic leadership which manages the exercises of the various levels. A pioneer for this situation gives a crucial a dream which is properly required in the association towards achieving the set objectives and targets.

Functional:

The practical degree of arranging centers around help capacities which are controlled by a business enterprise. Such bolster capacities incorporate HR, assembling, promoting and fund offices. At the useful level, techniques are characterized, a thought which that supports by and large corporate and business methodologies. People in an association depend on objectives and exercises arranged by their pioneers to adjust to and make commitments towards the accomplishment of achieving set targets.

What’s more, the useful degree of a business association is without a doubt accused of the duty of guaranteeing that every single part of an association is kept running in the most expert way. Regardless, this degree of activity is known to release the order of guaranteeing that the different divisions of an association are lined up with one another as far as the set points and goals which must be accomplished in a given timeframe.

Operational Planning:

• An explicit arrangement for the utilization of the association’s assets in quest for the vital arrangement.
• Details explicit exercises and occasions to be attempted to execute techniques.
• Is an arrangement for the everyday administration of the association.
• Operational Plan DOES show exceptionally nitty gritty data explicitly to direct individuals to play out the everyday undertakings required in the running the association.
• The Operational Plan gives the what, who, when and how much
  • what – the systems and errands that must be attempted
  • who – the people who have duty of every one of the systems/assignments?
  • when – the courses of events wherein systems/errands must be finished
  • how much – the measure of money related assets gave to finish every technique/task
• The reason for the Operational Plan is to give association faculty an unmistakable image of their errands and obligations in accordance with the objectives and targets contained inside the Strategic Plan.
• Basically, the Operational Plan is an arrangement for the usage of methodologies contained inside the Strategic Plan.
• It is an administration apparatus that encourages the co-appointment of the association’s assets (human, money related and physical) with the goal that objectives and targets in the vital arrangement can be accomplished.

Planning Tool:

Planning tools are characterized as the strategies for accomplishing expected results that already have not been utilized, arranging devices are a lot of apparatuses and systems used to help adequately design and oversee different sorts of business tasks, these devices are proposed to manage in the arranging, examination and basic leadership forms.

Below listed are some examples of planning tools:

Affinity diagram: A liking chart is the sorted-out yield from a meeting to generate new ideas. It is one of the seven administration apparatuses for arranging. The chart was made during the 1960s by Kawakita Jiro and is otherwise called the KJ strategy.

The reason for a liking outline is to create, arrange, and combine data concerning an item, process, complex issue, or issue. Building a fondness graph is an innovative procedure that communicates thoughts without measuring them.

Interrelationship diagram:

An Interrelationship Diagram indicates graphically the circumstances and logical results connections that exist among a gathering of things, issues, issues, or openings. It is especially valuable in recognizing the potential causal connections that may lie behind an issue that keeps on repeating regardless of endeavors to determine it.

Tree diagram: Graphic instrument which deliberately separates, and after that maps out in expanding point of interest, all segments or components of a condition, marvel, procedure, or circumstance, at progressive levels or stages. If there should be an occurrence of a ‘dissimilar tree,’ it starts with a solitary section that has at least one ways (branches) driving out from it, a few or all of which subdivide into more branches. This procedure is rehashed until all conceivable outcomes are depleted. If there should be an occurrence of a ‘united tree,’ this procedure works backward. Family (genealogical) and association graphs are the regular instances of a tree chart. Additionally, called chain of causes or dendrite outline.

Matrix diagram: The framework chart demonstrates the connection between two, three or four gatherings of data. Contingent upon the sort of framework, it might outline supporting data about the relationship, for example, the relationship quality, the jobs played by different people or estimations.

Matrix data analysis: The motivation behind lattice information investigation chart is to introduce numerical information around two arrangements of elements in a framework structure and break down it to get numerical yield. The components frequently are items and item attributes. The reason at that point is to break down the information on a few attributes for various items and utilize the data to land at ideal qualities for the attributes for another item or to choose the solid purposes of an item and utilize the data for structuring a technique for the advancement of the item.

Arrow diagram: is a device graphically depicts the connection between arranged exercises, which make up the execution of a specific undertaking. It graphically (outwardly) speaks to an intentional arrangement of work, focusing on the basic activities and stock time. This strategy is identified with basic way investigation

Organizing

Organizing is the function of management which follows planning. It is a capacity where the synchronization and blend of human, physical and money related planning takes place. All the three assets are imperative to get results. In this manner, authoritative capacity helps in accomplishment of results which in certainty is significant for the working of a concern. As per Chester Barnard, ‘Getting sorted out is a capacity by which the worry can characterize the job positions, the occupations related and the co-appointment among power and obligation. Thus, a director consistently needs to compose so as to get results.

A manager performs arranging capacity with the assistance of following advances: –

Identification of Activities – All the activities which must be performed in a concern must be recognized first. For instance, planning of records, making deals, record keeping, quality control, stock control, and so forth. Every one of these exercises must be gathered and ordered into units.

Departmentally sorting out the authority – In this progression, the chief attempts to consolidate and assemble comparable and related exercises into units or divisions. This association of partitioning the entire worry into free units and offices is called departmentation.

Characterizing the position – Once the offices are made, the director likes to order the forces and its degree to the supervisors. This action of giving a position so as to the administrative positions is called chain of importance. The top administration is into detailing of arrangements, the center level administration into departmental supervision, and lower level administration into supervision of foremen. The explanation of power help in acquiring proficiency the running of a worry. This aides in accomplishing proficiency in the running of a worry.

Co-appointment among power and obligation – Relationships are built up among different gatherings to empower smooth connection toward the achievement of the hierarchical objective. Every individual is made mindful of his position and he/she knows whom they need to take orders from and to whom they are responsible and to whom they need to report. A reasonable authoritative structure is drawn and every one of the representatives are made mindful of it.

Importance of Organizing:

Specialization – Organizational structure is a system of connections where the work is separated into units and offices. This division of work is helping in acquiring specialization different exercises of concern.

All around characterized occupations – Organizational structure helps in putting right men on right employment which should be possible by choosing individuals for different divisions as indicated by their capabilities, expertise, and experience. This is helping in characterizing the occupations appropriately which explains the job of each individual.

Explains authority – Organizational structure helps in explaining the job positions to each administrator (existing conditions). This should be possible by explaining the forces to each administrator and the manner in which he needs to practice those forces ought to be explained with the goal that abuse of forces don’t happen. All around characterized occupations and duties joined aides in bringing proficiency into directors working. This aides in expanding efficiency.

Co-appointment – Organization is a method for making co-appointment among various divisions of the undertaking. It makes obvious connections among positions and guarantee common co-activity among people. Congruity of work is brought by more significant level directors practicing their power over interconnected exercises of lower level administrator. Authority obligation connections can be productive just when there is a proper connection between the two. For smooth running of an association, the co-appointment between power duty is significant.

Viable organization – The association structure is useful in characterizing the employments positions. The jobs to be performed by various supervisors are explained. Specialization is accomplished through division of work. This all prompts productive and viable organization.

Development and broadening – An organization’s development is absolutely dependent on how effectively and easily a worry function. Proficiency can be achieved by explaining the job positions to the administrators, co-appointment among power and duty, and focusing on specialization. Furthermore, an organization can broaden if its potential develops. This is conceivable just when the association structure is well-characterized. This is conceivable through a lot of formal structure.

Suspicion that all is well and good – Organizational structure explains the activity positions. The jobs appointed to each supervisor is clear. Co-appointment is conceivable. In this way, clearness of forces helps naturally in expanding mental fulfillment and consequently a conviction that all is good in a worry. This is significant for occupation fulfillment.

Degree for new changes – Where the jobs and exercises to be performed are clear and each individual gets autonomy in his working, this gives enough space to a supervisor to build up his gifts and prosper his insight. A chief prepares for taking autonomous choices which can be a street or way to selection of new methods of creation. This degree for carrying new changes into the running of an endeavor is conceivable just through a lot of authoritative structure.

Summary:

This report consists of the problems or crisis of jet Airways Airline and how that could be addressed, or which models are implemented in order to operate the airline successfully. The jet Airways went to financial losses this year 2019 due to improper management plan and rises in fuel prices lead to delay in its debt. Lack of skilled staff and centralization of decision making are the result to poor management planning. The company was unable to pay its interest and principal amount to the creditors and it has been announced to stop the jet Airway’s operations and services. In terms of the success of jet Airways the effective management strategies need to implement which will be described in this project efficiently. This project will outline some other problems which are related to the major problem (improper management plan) and the causes of these issues. The analysis of the chosen problems and possible solution to overcome these difficult situations will be explained within this project. Moreover, cost benefit analysis, best alternative options, reasons to choose the alternatives, risk associated while using the potential options, recommendation have been elaborated for clear understanding of the project objectives.

Introduction:

Management plan plays a key role in every business decision and their operations. If the inappropriate planning is done by the management, it causes of low profitability and insolvency of the business. The jet Airways maintained the poor planning to run its business. Goyal the founder of Jet Airways wanted to control on all the decisions and company has lack of professional management which is important to make effective and valuable decisions (economic times, 2019). It is argued that the decision of acquiring Air Sahara Airline was the wrong decision made by jet Airways because after that its financial position went down and faced legal or human related problems. Furthermore, it failed to pay the debts on time because of wrong investment and unplanned strategies adopted such as it has more offices in various countries than its destinations resulted to financial crisis. During the time of its financial losses, the price of fuel increased, and jet Airway keep continuing low cost approaches for increasing the passengers which turned the Airline into deficiency and loss. Therefore, the improper management plan and their wrong decisions made the Jet Airway insolvent.

History:

Jet airways was incorporated on May 1993 as private Indian company with limited liability under companies act and full-service airline operates in 76 destination including Europe, North America, Middle East, and Asia. At that time Mr. P.V.V. Chalam and Mrs. Anita Goyal were shareholder of this company. These shares were transferred to Tail winds on May 12, 1994, and Mr. Naresh Goyal hold them on the behalf of tail wind in terms of RBI approval letter. Jet airways launches its first inter-connectional flight by linking Mumbai with London Heathrow by non–stop day flight. In 2006, jet airways signed special code sharing agreement with American airlines which was world ‘s largest carrier for INDIA- USA flights. In 2008, jet airways launched its daily direct flight between Mumbai and Bangkok and for this, jet airline wins best cargo airline of central Asia award. In 2013, Jet Airways started joint ventures with Etihad Airways and combined their network with 130 destinations (ndtv, 2019). In 2007, the profitability of jet Airways fell down and went into loss.

Problem statement:

The major problem of the Jet Airways was poor planning made by the management. Firstly, the Goyal was the sole planner and strategist of jet Airways and control all over the activities which led to wrong decision making. The fund distribution was not made at appropriate place which tend to liquidation of the Jet Airways. The company was unable to pay its creditors and struggling with financial losses. Fuel prices, operating cost of airline were at higher cost and did not come to cheap. In that situation, the company continuing adopted the full -service strategy and own low -cost brand with cheap flight rate which is the result to losses (Lakshya, 2019). Unfortunately, company tried to increase the share capital by decreasing the value from Rs. 2200 crore to Rs. 2000 crore. The other related problem was that management took bad decision of acquiring Air Sahara Airline in 2007 which was already struggling to pay its debts and the burden of debts of both jet and Sahara Airlines put the jet Airways into financial losses (Lakshya, 2019). Demand fell down because the poor services and other rival Airlines were providing impactive services and better aircraft designing and planning were taken into consider.

Key Stakeholders:

As the jet Airways had improper management planning which causes of various above-mentioned problems and the key stakeholders in this regard are the management of jet Airways involve Naresh Goyal, the partner company Sahara Airways, the Indian government and the shareholders are the stakeholders. However, the management is the key stakeholders in this project of Jet Airways.

Analysis of Problems:

· Alternatives:

There are some possible alternative concerns of Jet Airways which were the consequences to finish or insolvency of jet Airways. The company made wrong decisions tend to create various alternative problems. The company lay off 1900 employees instead of reducing the operating cost of the Airline because they had to pay debts which turned to low rate of passengers, as the employee fired the services provided to passengers were poor (Beresnevicius, 2019). Moreover, they were operating in many countries where they have no destinations, and this increased the cost and debts of company. Last but not least, the acquisition of Sahara Airline (debt-ridden) was another problem for the jet Airways.

· Preferred Solutions:

The best possible solution can be applied on the basis of above-mentioned problems of the jet Airways. Here are some preferred models or strategies need to be applied:

1. The proper management planning is the foremost model for jet Airways company and the Goyal (founder of JA) need to approach the decentralization in planning and decision-making process which will give the advantageous result.
2. Appropriate distribution of funds is the key solutions for paying its debts on time. If the management, make decisions properly how to invest the outside funds at right place then there will be no place of financial crisis. Like jet Airways, invest on buying Sahara Airlines the debt-ridden Airline.
3. Using the people-oriented model and friendly approachable behaviour with team members and employee. The Goyal fired employees and did not pay their salaries which was unfavourable for the company. Implementing this approach would be helpful because the Costumers’ experience comes from the attitude of the employees. Moreover, flexible policies should be implemented for customer satisfaction such as ticket cancellation policy. Passengers can cancel their ticket before 30 minutes of the departures.
4. Expanding the destinations can be great decision to increase the revenue.

· Reasons of choosing solutions:

The main reason of approaching these strategies is that these are based on management planning and their structure. If the management take valuable decisions then all the problems would be solved as, all decisions are made by the management and one right decision will change the whole scenario of Jet Airways.

· Cost-benefit Analysis:

The cost of choosing these models will be overcome by implementing them. Because the benefits associated with the models undermine the cost. The company need to hire professionals for proper management planning which will require more funds. However, the government, public and private shareholders, merge with profitable company would be the greater sources of finance.

Risk and Assumptions:

The following models have risks and assumptions that can generate after implementing them.

1. Lack of human resources management
2. Shortage of time and resources at given period
3. Rises the price of resources (fuel, aircraft materials, and taxes, etc.)
4. Financial risk associated with increasing the prices of resources

The management should consider these risks while planning and implementing the strategies. The management need to be planning for future uncertainties and keep reserves to tackle with that problems.

Recommendations:

The main issue of the jet Airway was that struggling to pay its debts because of financial crisis. The reason is the poor management planning thus, they need to make efficient planning when it further tries to renovate its business and require calling the decentralization in decision making. The company will have to choose the best routes and flights to improve better network. On the top, taking the right partnership for increasing the profitability is very important decision for jet Airway. Furthermore, it is recommended that using the new innovative technology to improve their efficiency and to satisfies the passengers and employees as well.

Conclusion:

From the discussion in this project, it can be concluded that Jet Airway undertook various mistake that result to insolvency of the company. As the company did not organise the funds distribution appropriately lead to struggling of paying the debts. The major reason behind all the concerns occurred within jet Airway was management misfunctioning and no strategic planning taken into account. Because the management take all the valuable decisions and responsible for all complications and liquidation of Jet Airway.

References:

1. Lakshya Singh. (2019). 5 Reasons for the Shutdown of jet Airways, India beloved Airline. Retrieved From: https://startuptalky.com/case-study-jet-airways-crisis/
2. NDTV Profit. (2019). Jet Airways: Reports, Company History, Directors. Retrieved From: https://www.ndtv.com/business/stock/jet-airways-_jetairways/reports
3. Rytis Beresnevicius. (2019). Why did jet Airways fail? Retrieved From: https://www.aerotime.aero/rytis.beresnevicius/23007-jet-airways-crisis-explained?page=1
4. The Economic Times. (2019). The rise and fall of India’s private oldest Airline. Retrieved From: https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/jet-airways-naresh-goyals-folly-how-to-crash-a-business/articleshow/68930916.cms

Introduction

Project planning and scheduling is a mechanism of communications what tasks need to be done and which specific organization resource is allocated for the job and in what time frame. Planning is the coordination of all the support that needs to be put in place or to be used in achieving the organizational key goal project schedule on the other side is a document that collects all the works that are needed to deliver the project which has been planned over a given period (Aulin et al., 2016). For most organization project planning often involve the development of a project schedule document. This often guides how a given task is done within an organization, and the actual goal or mean of achieving the goal. For Glasgow Queen Street an effective project planning and scheduling will lower the cost of redevelopment that it is scheduling to accommodate for the increased passages population (Pitroda et al., 2018)

Construction of platform and changes

Due to the current nature of the area, modern infrastructure will be constructed to be able to while to accommodate more people. The fields will be expanded to make it more accessible and safe. The double carriage that exists at The Square will be expanded to meet the current requirement able to handle over 2000 people at the same time. This will reduce the congestions that often occurs in the same area (Pitroda et al., 2018). Besides, the areas will be expanded with the construction of other public facilities such as food paths and escalator increased in the fields to be able to enhance the productivity of the area. To achieve this, the project will include the development of a critical platform where passengers will be able to sit as they wait for the train to arrive. This, I believe, will reduce the instances where individuals are often injured as people scramble for the train.

Importance of planning and scheduling for the railway company

Baseline for success

One of the essential aspects of project planning is the due fact that it offers the base for the standards of productivity and hence success. Without setting a clear plan in place for any activity of the desired outcome defined by the completion date, an organization is not in a position to know or even meet its goals. For the Glasgow queen street railway company, the development of a clear and achievable goal is only possible with adequate planning and scheduling (Pitroda et al., 2018). This is often seen in the revenue goals, and the goals permeate every aspect of the business.

Revenues planning

All the revenues are usually as a result of the other activities such as marketing and advertisement strategies put in place got the fulfilment of capabilities. The organization is likely to succeed in the implementation of its redevelopment of the activities through the development of the project baseline through the element of planning and scheduling. This is because project scheduling offers a clear and definite goal that has been set by the organization. Project scheduling for the railway service will make this achievable (Pitroda et al., 2018)

What went wrong or right

The other importance of any project planning and scheduling is the project’s understanding. The project planning and scheduling make it possible for the project planner to be able to understand clearly what wen right in the project and what went right. This makes it possible for the project planners to be able to change the course of their project in terms of redirecting their activities to achieve the best but most importantly being able to make the future project even better by examining the successes and the elements of the previous failure.it is more straightforward for the organization to redirect its key strategies that are not working in a shorter period than to wait for an entire year to elapse for it to be able to pass and realize where the project goals were missed. An effective project planning and scheduling make it possible for the project planner to set the deliverable and the means of achieving each aspect of the project developable. For example, in the case of the Glasgow Queen street railway. The redirecting of the project will only be possible through the development of effective planning and project scheduling.

Project deliverables

Community involvement

Any project normally involves a given community. Such a project is often best dealt with when the project is clearly articulated or carried out with the community in mind. For the Glasgow, Queens street project collecting the conflicting view of the local community will help in achieving the best project in terms of quality and the aspect of viability. Besides, the community involvement in the project during the planning time sure better planning as the various needs and concerned by the community who better understand where the fundamental flaws will help in improving the project. The element of local community involvement is key in ensuring that the project is developed in the interest of the majority compared to when the project is developed by the

Stakeholder engagement

All the various stakeholders in mind should equally do project planning and scheduling. For the Glasgow, queens street’s planning various people other than the local community are affected by the project. The project also includes; the train management, passengers, and the government and non-governmental agencies, which would help in ensuring the project is more successful in planning and the aspect of the scheduling. The effectiveness of the project will significantly rely on the element of the project’s essential stakeholder’s involvement. All the stakeholders’ opinions are much considered in the development of the new plan or during the plan of project planning. Overall a well-panned project often succeeds and becomes more successful in almost all elements (Samsel et al., 2020).

Establishing a coding system

A coding system for all the identified deliverables during the project planning is critical in ensuring the project remains successful. A project coding system is a key to the development of project information flow. A better project planning and scheduling start with the best project shared. Besides coding system helps in the event of a method for project development standardization. This is often based on the aspect of key projects, key stakeholders’ activities. In receiving historical data for the initials state of the project, the project coding system will help in the development of effective project cost planning and the element of the overall budget. It is the role of the project planning manner to ensure that the project is best developed in the interest of cost and time. The project coding system also provides that all the critical changes in the project that needed improvement during the planning process are effectively developed (Kumar et al., 2019).

Project scheduling

Project scheduling involves planning the project key deliverable on the aspect of time. For a project planning process, the management or the key project planning officer need to budget on the aspect of time. The scheduling involves identification of the key deliverable such as the project overview, constructions, assessment, and evaluation. All these are often planed on the aspect of time. The project planners need to identify the key stages which each deliverable identified have. The time is then allocated for each of the deliverables. At the same time, the project key cost is monitored against each element.

Advantages of planning

The element of time management is corporate to reduce the impact or the risk, which are often associated with poor project budgeting.

• Scheduling during planning reduce the cost overrun
• It reduces the negative impacts of the risk associated with a project cost
• Programming reduce poor project development

Project risk ad mitigation

Each project has a problem risk. In the process of propjet planning and scheduling, the element of the project, associated risk must often be factored. The risk must be identified, and the critical mitigation measures put in place. For Glasgow Queens street, it is critical for the project planners to effectively identify the principal risks, which can include the project’s cost risk, injuries during the constriction, and the risk associated with time. The project can go beyond the budget. A risk mitigation plan is designed to eliminate or minimize the impact of the risk events—occurrences that hurt the project. Mitigating risk strategies include risk avoidance, acceptance, transference, and limitation. Avoid: In general, risks should be avoided that involve a high probability impact for both financial loss and damage (Samsel et al., 2020).

Conclusion

The planning and scheduling of large projects require the integration of all the processes of project management. Project scope management is a balancing game of time, cost, and quality. The human element is ever-present in dealing with the procurement, risk, and communications aspects. Project planning and scheduling determine the success of a project in various ways. For the Glasgow project key planning element such as the construction and involvement of the local community and other relevant stakeholders is critical in the overall project success.

References

1. Kumar, B. A., Santhosh, S., Balaji, G., & Kumar, T. R. (2019). OPTIMIZED PROJECT PLANNING AND SCHEDULING OF MULTI STOREY BUILDING.
2. McElroy, J. W., McElroy, S. P., & Samsel, K. (2020). U.S. Patent Application No. 16/533,277.
3. Viradia, P., & Rao, B. P. (2018). Planning, scheduling, and delay analysis of a building. International Journal of Civil Engineering and Technology, 9(5), 665-671.
4. Liu, N., Kang, B. G., & Zheng, Y. (2018). Current Trend in Planning and Scheduling of Construction Project Using Artificial Intelligence.
5. Harsh, S., Rajgor, M., & Pitroda, J. (2018). Planning, Scheduling, and Tracking of Industrial Project Using Primavera P6 Software.
6. AlNasseri, H. A., & Aulin, R. (2016). Understanding Management Roles and Organisational Behaviour in Planning and Scheduling Based on Construction Projects in Oman. Journal of Construction in Developing Countries, 21(1).

Role of Planning Strategies

• Complacency and low aspirations among members of the organization
• Inconsistency between the way organizational insiders and outsiders view the organization
• A lack of shared perception of organizational priorities or goals
• Individuals and groups focused on priorities that detract from the mission of the organization as a whole
• An evolving political or economic landscape from which the organization has become disconnected
• An absence of a clear or shared set of criteria or measures of progress or success for the organization
• A need to redirect the organization toward new opportunities_ new programs, initiatives, or areas of focus
• Insufficient attention being devoted to innovation, change, and out-of-the-box thinking

The Components of Strategic Plans in Higher Education

Various strategic planning approaches used in higher education may differ in some respects and a common characteristic is that they encourage an institution, department, or program to consider. It also clarify issues related to the mission, vision, and values and then to develop and implement plans and strategies that translate these organizational attributes into a well-defined blueprint for collective action.

The following components are to be planned to change in higher education may be implemented through a variety of different strategies.

1. Mission, vision, and values
2. Stakeholders’ perspectives
3. Environmental scan and benchmarking
4. Goals
5. Strategies, priorities, and action plans
6. Plan creation/ implementation
7. Outcomes and achievements

For all these reasons, strategic planning typically begins by drafting, refining, or reviewing existing documents that address the issues of mission, vision, and values.

1. Mission, Vision, and Values Statements:

Thoughtful mission, vision, and value statements remind members of the organization and other stakeholders of the core purpose of the organization, identify aspirations, and specify key principles and priorities. They provide an important communicative function for internal and external audiences and can offer a useful guide for day-to-day behaviours and decision-making within the organization. Of particular importance to leaders in higher education is the role these statements play in anchoring, linking, and guiding programs and services. Mission, vision, and value statements also facilitate communication with various stakeholder groups [3].

A mission statement provides a description of an organization’s primary purpose and reason for its existence. It focuses on the current state and articulates what others can expect from the organization such as the services and programs provided by the institution, department, or program.

A vision statements describe the aspirations of the institution, department, or program, and are generally considered to be drafted, refined, or reviewed after the mission statement.

While value are not always included as a part of planning framework, a statement that includes such principles can be an important element not only as a foundation for planning but also a guide for the day-to-day activities of the program, department, or institution. Some organization may also have statements of values or principles. If so, they should be considered this stage in the planning process.

2. Stakeholders’ Perspectives:

Achieving clarity on the list of those who benefit from and collaborate with any program, department, or institution is important for organizational practice in general, and also another valuable foundational step in the planning process. This deliberate and explicit prioritization of key stakeholders can be very helpful for defining aspirations, developing plans, and establishing specific goals and strategies. Leaders and colleagues within colleges and universities can similarly benefit from clarifying who their key stakeholder groups are and what needs and expectations exist for these groups as they relate to potential departmental, program, or institutional priorities [3].

3. Environmental Scanning and Benchmarking:

Environmental Scanning is another critical step in strategic planning. Also known as a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, this stage in planning calls for a careful consideration of the social, economic, political, regulatory, technological, and cultural environment in which an organization functions, focusing particularly on those factors that could influence on potential plans or the planning process. Depending on the planning context, and the time and financial resources available, the extent and sophistication of data collection and analysis can vary considerably [3].

In combination, environmental scanning and benchmarking are key elements in strategic planning. Each contributes to a leader’s knowledge of the potential challenges and opportunities facing the unit, department, or academic institution, and can also encourage the adoption of innovative ideas from other organizations and sectors.

4. Goals:

Goal setting is a core activity in strategic planning, and it is often the point at which people are tempted to begin the process. However, without a clear sense of purpose, aspirations, stakeholders, and comparative perspectives, goal setting could easily proceed in less-than-useful directions.

Goal should be broad and far-reaching in scope and should describe what the organization needs to do to achieve its high-level aspirations. In establishing goals, it is important to resist pressures to create a catalogue of projects that might be undertaken. While creating an expansive list of suggested projects may seem like a good place to start, it is important to first clearly formulate and articulate goals that represent the critical needs of the organization [1].

5. Strategies, Priorities, and Action Plans:

Strategies or statements describe how the goal(s) will be realized. Action plans specify what will be done, by whom, and when. Strategies and action plans together provide the details as to how the goals will be addressed. This is the stage where the many project ideas that often surface in earlier discussions can be considered. The challenge of planning is determining which of the many possible ways to achieve the organization’s goals are likely to have the greatest significant impact. The action plan should be manageable to implement and are likely to provide the greatest potential return on time and resources.

6. Plan Creation:

The aim is to design a document that clearly articulates the organization’s plan, and thereby serves to inform, influence, anchor, and guide the organization’s future. The plan should be a visible and public document, a communication device, and the most tangible record of the effort. Because of its physical and public nature, it is likely to be the focus for judgments of the success of the planning effort. In selecting content and format for the planning documents, people involved in the planning efforts must consider the plan’s primary users, expectations for how the plan will be used, and the role the document is expected to play in facilitating the sharing of information with multiple users. Once the planning document is completed, it is a leadership responsibility to disseminate plan progress reports and promote the value and importance of its content within and beyond the program, department, or institution.

7. Outcomes and Achievements:

Achieving and sustaining the desired outcomes is the overriding purpose of strategic planning and the fundamental goal for organizations and leaders alike. Higher education organizations’ plan, it is in measuring and documenting the achievement of stated goals, tracking progress over time, and making the necessary adjustments to ensure the intended outcomes during the implementation of the plans.

Although listed as the final step in the planning process, considerations relative to this stage should begin early and continue throughout the implementation and follow-through stages. The critical activities include maintaining focus on the institution’s aspirations and plans and tracking progress relative to each goal, strategy, and action plan. This approach requires leaders to identify the critical indicators of success for the plan as well as the planning process, to determine the appropriate methods for monitoring progress at each stage, to decide how information regarding progress outcomes will be organized and shared, and to develop and approach to using that information that will assure follow-through for the plan.

Strategic Planning in Higher Education

In recent years, strategic planning has become an increasingly popular tool for college and university leaders who are confronted with the types of situations described previously.

In many higher education settings, two of the most common obstacles leaders face are the lack of a clear and shared sense of where the project, program, centre, department or institution should be headed and a genuine commitment to the collaboration and coordination necessary to achieve the desired outcomes. One of the attractions of strategic planning is that it may be implemented as a standalone activity or in conjunction with other institutional opportunities or requirements, such as preparation for accreditation [4].

Developing a strategic institutional plan

A strategic institutional plan is designated as core because they are fundamental for professional operations and embody core values and practices. The primary goals of this guide are to explain the importance of institutional planning and plans, outline the contents as strong plan, and provide resources to assist in the creation of the plan.

Figure 1. shows the proposed designing a strategic plan in an institution. A strategic institutional plan is a procedure that is multi-year, aligned with the mission, and contains measurable goals and methods which can be evaluate. A plan should be current and aligned with the mission. A strong plan includes prioritized action steps, establishes timelines, and assigns responsibilities for implementing the plan. It also assesses and addresses resources needed to see the plan to fruition. It is often supplemented by an implementation or an operating plan that puts the decisions made in the institutional plan into practice.

Inflation is the change in overall costs for merchandise and services. The most commonly used measure of inflation is the Consumer Price Index (CPI), which tracks the weighted average of prices of many consumer goods and services. Economists have found that if the rate of inflation increases, nominal interest rates will usually increase correspondingly. Therefore, economists generally use real (inflation-adjusted) rates and greenback amounts in analyses. The standard presentation of the normative life cycle model has each quantity and rate in inflation-adjusted terms, because the theoretical basis of the theory is maximization of the utility of real consumption over one’s lifetime. The best % of financial gain to avoid wasting during a specific year ought to rely on the important pattern of financial gain within the future, present assets, and real interest rates, not on the rate of inflation.

If inflation remains low, it will not be too challenging to think about amounts in nominal dollars 10 years in the future, but for a young worker, nominal amounts during retirement would be difficult to comprehend. For very long time periods, the nominal accumulations possible with financial investments are misleading to average people, for instance,

The periods of very high inflation have been related to wars and energy crises: World War I, World War II, the Vietnam War, and energy shocks in the 1970s. In most of the past 50 years, there have been some countries experiencing very high inflation and other countries experiencing deflation. In 2007, annual inflation rates in the World Bank database ranged from -10% to 35% (World Bank 2015). Expectations for future inflation are influenced by recent patterns. In a metropolis survey of economic planners Associate in Nursingd educators found general agreement that an rate of inflation of four-dimensional per year ought to be used for retirement coming up with, a rate roughly equal to the 5 year moving average at the time of the survey. It is plausible that the same survey in 1983 would have had a far higher agreement rate of inflation, perhaps near the five year moving average of 9%. Since the year 1992, the inflation rate has been below 4%, and the five year moving average as of 2015 was 1.7%.

What factors are related to the inflation rate?

Over the long run, a nation’s inflation is the result of political decisions, and one motivation to push the inflation rate higher is the belief that somewhat higher inflation can increase employment. In addition to the thought that additional inflation would possibly stimulate the economy, the existence of an oversized national debt could lead on to pressures to let inflation increase. To the extent that an income tax system is not indexed to inflation, increases in the inflation rate will bring in more revenue without a direct increase in income tax rates. For instance, with low inflation rates, taxes received from capital gains are relatively low, but with high inflation, capital gains will be much more heavily taxed. A country might also let inflation increase to ease the burden of paying down the national debt, especially if a high proportion of the debt is held by foreigners. Inflation rate to 5% per year of U.S. could help reduce the burden of the federal debt, at the expense of holders of the debt in China, Japan, and other countries. There are long term costs to such policies, and perhaps it is unlikely that political turmoil in the United States would lead to inflation rates being persistently higher than the 2% to 3% range of the 1995 to 2016 period, but it is possible. Analysis of inflation rates around the world (World Bank 2015) shows that of 180 countries with inflation rates reported for the period 1995 to 2014, over 24% had mean inflation rates for that period of 10% per year or higher. The maximum 20 year mean was 412% per year, and even some countries in Europe had mean rates over 25% per year.

The effect of changing demographic on retirement planning

Among the factors associated with retirement planning plans, age, education level, gender, and house financial gain area unit characterised as vital demographic factors toward individual retirement preparation.

1-Age

Age has emerged as an important and consistent factor in human behaviour towards retirement planning. Age can help to guide pre-retirees and individuals in ground work process of planning lead to attitude and perception changes on retirement and also help to raise retirees and individual retirement confidence. Besides, concluded that individuals are more motivated to take action for retirement as their age and income increases. The planned retirement age is guided by reinforcement given from constant visit or review on the information needed for planning. It can be concluded that age and other demographic variables such as educational level, household incomes and size are inter-related to guide pre-retirees in groundwork process of planning. The average individual tends to retire 3 years before the expected age and the different between expected and preferred retirement age are: chronological age, work condition variables, perceive of income adequacy as well as attitude towards retirement.

2-Education Level

The sources of information will influence individual’s attitude, decisions and intention towards retirement planning and the information of education can also help individuals to explore more regarding their retirement planning. In addition, the effect of education level can be serving as a motivator or guidance for individuals to start the retirement planning preparation. Individual tend to be more driven to concern on retirement coming up with preparation yet as take action for his or her retirement once increase in the age and also the education level. Furthermore, people might expertise and come through higher confidence level in their retirement coming up with life after they have teaching level. Men WHO had received teaching level attended be a lot of assured and do higher in their retirement coming up with compared to people that had received lower levels of education level. Hence, the amount of education and confidence found to be absolutely connected. On the other hand, in general, because of limited education which had been given to them in the past, older women are found less likely to have higher education. The result of education on ladies’s retirement makes women to be having less information and fewer monetary literature on retirement and conjointly retirement coming up with. Women now participation in retirement planning preparation increases as they receive higher education. People who extremely educated have a tendency to possess and receive more finance information on retirement coming up with compared to those that area unit less educated.

3-Gender

Instead of age and education level can moving on retirement coming up with. Gender distinction is additionally a major predictor in retirement planning studies. The major prestigious issue for early preparation in retirement coming up with thanks to men and girls are typically can suppose and act otherwise in term their views and expectations. Men are found to be better prepared and ready for their retirement planning compared to women. They generally found to be a lot of economically and psychologically weak in retirement planning and area unit influenced by many factors like restricted economic accessibility, pension scheme, low wage, gender prejudice yet as choice of career possibility in their intention towards effective coming up with. Several previous findings discovered that people in spite of men or women WHO area unit a lot of financially literate, richer tend to be more tolerance to risk as well as attitude towards retirement area unit among vital factors in affecting a personal call in coming up with for retirement and obtain skilled help in retirement coming up with. Gender difference do not bring any effect to the decision making but the likelihood of both genders’ behaviour on professional retirement help-seeking are the same, however, women involvement rate in seeking help from professional are slightly higher compare to men if they are given a chance. They a lot of seemingly to hunt monetary recommendation from consultants and skilled and people ladies WHO have higher monetary information and literature tend to try to to higher and a lot of prospering in their retirement planning. Majority of the women do not have any idea and plan to do their retirement planning and most of them only depend on the support from their friends and family throughout retirement age due ladies area unit less equipped with monetary information and financially literature compared with men. On the other hand, gender difference and marital status have significant relationships when come to investment decision on retirement planning. These factors can generate totally different level of assets distribution among ladies and men in retirement coming up with. Men and women do not think, perceive, and act for retirement planning in the same way. Men are likely to go for their own individual choice perspective while women tend to adopt life course perspective when it comes to retirement planning. Besides, men suppose and understand retirement as another stage of life within the future whereas ladies build less prediction on future life stages.

4-Income

Income level is perhaps another important variable. Income is important in the sense that one’s must have enough money or wealth resources in order to make retirement preparation. Individuals preparation on retirement income varies from one another. Identifying adequacy of income during retirement age is not an easy task. In addition, among other socioeconomic aspects, most of the time the attitude towards help-seeking from professional towards retirement planning is partially influence and control by income factor. The applied mathematics analysis shows that individuals who have higher financial gain square measure additional motivated to seek professionals facilitate concerning investment-related call, but the people who come from lower income group which had less financial gain square measure less likely to look for skilled assistance on retirement investment choices. For this reason, income can be considered very much associated to the retirement income source. Attitude and behaviour towards retirement are influence by income in general. Income is a critical and essential measurement in some matter relating to retirement especially when in retirement education program and professional financial help-seeking Income will definitely impact on the financial education schemes topic that employees square measure trying to find. This study known that employee tend to pursue differently in varieties money education out there supported monthly financial gain. Workers who come from higher income group are more preferable on financial education on estate planning while workers with lower levels of income more preferable on financial education on debt clearance, mortgage purchasing and budgeting.

The mission of s strategic planning is to drives organisations and businesses forward. A good strategic plan reflects the values of the organisation, and assist organisation to explains how to win in the market. Strategic plan assists businesses to define clear organisation objectives, including action to be followed with the intention to achieve the bigger goal. In essence strategic planning clearly defines the criteria’s to be followed to achieve success and guides the decision-making processes (Olsen, 2012:6). Strategic planning and implementation require effective management participation. Strategic planning failed in most organisation due to lack of management support and participation, especially during the execution or implementation stage (Olsen, 2012:6). Good strategic plan increases good opportunity business opportunity (Reeves, Hanaes & Sinha, 2012:36). The study adopted the definition of Smallbiz (2018:10) who mention that strategic planning is the process of documenting and establishing a direction of the business by assessing who should be involved, how to organise and what to be changed within the organisation change.

Benefits of Effective Strategic Planning

Increase Operational Efficacy

Companies and organisations need to be efficient and effective. The mission of operational efficacy is to identity problems and create solution. In a business context operational efficacy is defined as the ratio between an output gained from the business (Barry, 2019:20). When the operational efficacy of the business improves also the input of the organisation improves (Biron & Bamberger, 2010:01). Productivity and operational efficacy can be used interchangeably (Klassen, Tze, Betts & Gordon, 2011:11). The greater the operational efficacy the more profitable an organisation can invest (Barry, 2019:20). Increased operational efficacy is mainly achieved by streamlining and evaluating the core organisational processes with the intention to efficiently respond to the ever-changing market forces in a cost-effective manner (Slack & Hall, 2012:20). In order for organisation to achieve this operational efficacy, organisations are encouraged to implement strategic planning. Strategic planning will assist organisation to identity unwanted process and minimise wastages and redundancy while leveraging the resources that most contribute to the success of the organisation (Klassen, Tze, Betts & Gordon, 2011:11). During strategic planning, organisations are obliged to identify best workforce, resources such as technology and relevant business process. The reduced of internal cost as a result of good strategic planning will enable the company to achieve higher profit margins or to be even more successful in the more competitive world (Biron & Bamberger, 2010:01).

Increase Market Share and Profitability

Market share and profitability are critical in business strategic management worldwide. There is a growing demand in organisations to make right decisions on how to increase market share and to make profit. Increasing market share and profit is the objective for every organisation (Alabi, 2016:04). However, organisations need to spend money in order to increase their market shares and profit. Increased market share point organisation at the vantage stage and increase its competitive stage (Sipemann; 2013:61). The some of the advantage of the improved market share of the organisation is that it improves posture the company to a better price from suppliers and increase the organisation buying power (Etale, Bingilar & Ifuruze, 2016:103). Organisation improves their profit and market shares through various ways, such as strategic planning, innovation, resources, strengthens customers relationships and acquiring competitors. A higher or increased market share puts the organisation at the competitive advantage (Weetman, 2010:14). Companies need to consider various factors. Market share and profitability as be expressed as market power advantage. This happen when organisations are able to raise its price or offer inferior products because its rivals are not able to offer customers a reasonable alternative. Market share will enable organisation to make higher profit.

Establish Direction

Organisation need to clearly define their organisational goals which will define the direction of the organisation. Having a clear organisational direction is crucial for building organisation momentum. Lack of clear organisation direction or guidance can create confusion within the organisation (Romano, 2017:66). Clear organisational direction could be established through strategic planning and implementation. Organisational direction is equated to the something as organisational objectives. Organisational direction is a key activity within any strategic planning processes. The board of directors together with management and supervisor are the once responsible for guarding, defining and setting the direction of the organisation (Zabihi & Hashemzehi, 2012:01). They are responsible for clearly-setting values which will also decision process of the organisation (Romano; 2017:64). Furthermore, management has a key role in drafting the organisation mission statement that will define its fundamental purpose.

Establishing a clear organisational direction drive the organisations to achieve greater organisational goals (Biron & Bamberger, 2010:03). Clear organisational goals lead to greater success which also on the other hand improve the performance of the organisation. In general, the criteria to establish organisational direction is taken from the organisations strategic planning. The basic objective is that all the criteria must be aligned within the organisational strategy. This will ensure that executives developing the strategic plan understand the organisations capabilities and how it contributes to accomplishing the organisations strategy (Romano, 2017:66).

Increase Job Satisfaction

Job satisfaction is important part in any organisation. It plays a critical role in the individuals well-being. The individual’s level of satisfaction varies from one person to the next. Happy employees are productive once. When employees are not satisfied about their jobs, then the productive of the business will suffer (De Pablos 2017:155). When employees are not happy about their job (De Pablos 2017:149). Job satisfaction is crucial for the success of the organisation. The relationship between job satisfaction, the organisational culture and the organisations leadership is important for organisational success and performance (De Pablos 2017:155) as well as improving workforce morale. A motivated workforce will lead organisation to reach its long-term goals and objectives. (De Pablos 2017:155). Organisational culture and job satisfaction go hand in hand. It has been stated that there is a positive relationship between job satisfaction, job performance and the organisational culture (De Pablos, 2017:155).

Strategic Planning Challenges Faced by Organisations

Strategy planning and implementation are very important components in the organisation. Strategy has been practiced for a long time. Strategic planning organises resources, plan time frames to carry the planning, while taking into account the probable capabilities and behaviour of competition. Maotwanyan (2017:62) strategy planning and implementation is a process which require experiences and expertise. Below are the challenges that might be faced during strategy planning and implementation.

Right People Not Included

Most companies and organisations are in the process of restructuring and reshaping their businesses. However, it is critical for organisations to ensure that resources are given to right people, with required skills and capabilities. Right people need to be included in the strategic planning process as well as in the implementation stage (Senthilkumar, Durai, Sharmila & Poornima, 2014:348). Management, board directors as well low-level employees are required to be involved during strategic planning and implementation (Maotwanyane, 2017:63). Having the right people during strategic planning is very important for achieving desired results (Senthilkumar, Durai, Sharmila & Poornima, 2014:348). Responsibilities and resources should be assigned to the right people with right skills and expertise. Strategic planning demands all employees to be committed accountable, this will lead to great achievement.

A Lack of Communication

Good communication is about understanding instructions, acquiring knowledge and adopting right resources (Mazanec, Daly, Ferrell & Maryjo, 2011:617). Effective communication is a good tool in achieving higher productivity and maintaining lasting and strong leadership. It is the essential skills of today, hence poor communication can destroy organisation as well as its processes (Banaeianjahromi & Smolander, 2019:20). Poor communication lead to poor strategic planning and also bring frustrations in the workplace. Lack of or poor communication lead to poor teamwork, low morale and poor service delivery. Lack of communication can cause employee to question their job and their responsibilities. It is essential for organisation to communicate all the processes of strategic planning (Drucker, 2017:20). Ineffective communication creates misunderstandings, loss of opportunities and raise business conflicts. Good strategic planning needs to be clearly communicated and cascaded to the right people. the level (Drucker, 2017:20). Though strategic plan can be good, however it needs to be generated in to good intentions and to the right people. This will lead the organisation to produce greater results. Commitment, good communication process and right skills makes a good strategic planning.

Core Competencies

Every organisational require skilled employees to carry out its organisational objectives. Core Competencies are the actual skills of the employees working for the organisation (Batko & Szopa 2016:114). Core competencies, skills form the greatest part of strategic planning. Skilled also referred to as the core competencies are seen as a competitive advantage in an organisation (Banaeianjahromi & Smolander, 2019:20). Skills and competencies show the individuals innovation and proactiveness. (Batko &Szopa 2016;114). Employees capabilities are a crucial asset of the organization. One of the tools that can be used by organisations to determine who is the correct person to employ.

Ignoring Marketplace Reality

Market place and customers need to be considered during the strategic planning and implementation (Batko & Szopa 2016:114). Strategic planning is viewed as a step to improve the processes implementation with the aim of meeting customers’ needs and satisfaction (Hollingworth, 2008:30). Strategic assumptions represent the shared values, beliefs and vision of the management team (Piercy, 2012:350). The truth of the matter is that making sound choices, leading to sustainable strategies has become more important than ever (Piercy, 2012:350). It is critical for organisations to keep in mind their target market during the strategic planning. Ignoring the reality of the marketplace, is very dangerous because it can lead to organisational failure. Companies has to realize that the consumers are increasing in sophistication and keep making new demands. Consumers are turning to value-driven strategy and turning away from brand and relationship marketing. Shifting the outlook of the future and how clients look at organisations (Piercy, 2012:351).

Lack of Accountability

Strategic planning and implementation require commitment and accountability from both employees and management. Stanleigh (2011I:45) emphasised that lack of management and employee’s commitment lead to strategic planning and implementation failure. It is critical that all employees be committed to the processes during strategic planning (Drucker 2017:20). Strategic planning an implementation has many benefits over all types of industries, formal or informal, private or state owned. Strategic planning requires good planning to avoid wastage of time, money and lack of progress (Wilhite, Brierton, Schilling & Tomal, 2017:94). For a strategic planning and implementation to succeed those involved has to be held accountable.

Appropriate Strategic Implementation Strategies

Strategy planning and implementation are very important components in the organisation (Alkhafaji, 2013:01). Strategic planning and implementation require commitment and accountability from both employees and management. Stanleigh (2011I:45) emphasised lack of management and employee’s commitment and support will lead to strategic planning and implementation failure. It is critical that all employees be committed to the processes during strategic planning (Alkahafaji, 2013:1). Formulation of strategy is the process of developing long-term plans to deal effectively with environmental opportunities and threats. Strategy formulation should be done by keeping in mind the mission and vision statement of the organisation. Various challenges could be encountered during strategic planning process.

Poor Planning

Planning is a critical step in strategic planning. Poor planning lead to misunderstanding and poor organisational performance. Hence it should be properly planned (Hainess, 2016:76). During the planning stage, it is imperative that all employees are involved. During the planning stage, employees and employers are oblige to access the organisation needs, objectives and intentions (Hainess 2016:99). Furthermore, identify the skills and teams to drive the strategic implementation.

Organisational Processes

Organisations need to ask themselves the question of what is the requirement for success? This will help the organisation to determine the necessary procedure, process to follow. Father again, considering the budget, skills and competencies of employees (Bryson, Sharon Anderson & Alston, 2011:19). Organisational processes and layout should be clearly (Konovalov, 2016:112). When designing organisations processes various factors need to be considered such as the unit size, action plan, performance control and liaison devices

People with Right Skills

Right people with right skills are crucial for the success of the organisation. It is crucial for organisation to identify the right people with right capabilities to carry the implementation and the execution of strategies that has been developed by the management and employees (Bryson & Alston, 2010:110). In addition, it is recommended that organisation appoint a leader or small team to produce the actual plan and get the necessary reviews. Give an outline and information on process to inform stakeholders of the plan, the review process and its adoption. Ensure the resources needed for implantation are identified and whether or not they are assured (Bryson & Alston; 2010:110).

Conclusion

Strategic planning outline how the company transforms and also define new processes that will be implemented in order to meet customer’s needs. Ordinarily, management and executives use this stage, to determine the objective, target to formulate time frames which the project is supported to run and lastly indicating the methods of monitoring the processes.

Hardly a day in the life of two people is as important as their wedding. A day that will be remembered for years to come. Marrying is ‘in’. No one is indeed being abused today for living together in unmarried partnerships and raising children together. Nevertheless, as a couple or a family, pairs often do not feel completely connected until an official ‘yes’ to each other is said. Marrying someone isn’t just about saying ‘yes’, it is also connected to a lot of work and organization. As Jessica Gomez in her book ‘The Realist Bride’ stated: “Organization is the key to planning your wedding”. Therefore, the bride and groom need to plan this day carefully. There are too many details that must be taken into account for an unforgettable day. As a wedding is usually planned by people only once, it goes without saying that one does not always know exactly what is important. At most weddings, small planned things do not work out well, but also large organizational failures happen. The process of planning the perfect wedding requires focusing on and following 6 major phases of planning: budget, location, photographer, singer, wedding dress and wedding rings, as well as seat and table arrangement.

Initially, budget planning is crucial for a wedding. The wedding is associated with high costs, which is every bride and groom clear in any case. Even if the celebration takes place only on a small scale, costs arise. Therefore, it is important to think carefully about how much budget is available for the wedding. Without thinking of details, the bride and groom should sit together and determine exactly how much financial scope is available. As not everyone will have enough savings on account, there are also opportunities in banks to take special wedding loans. Simply ask the house bank for this. But be aware! While this is about planning the dream wedding, one should not plan beyond own financial resources. If necessary, choose only one loan amount, where the monthly loan amount is affordable. It may therefore also make sense to compare several offers from banks. One or the other bank finally gives the bride and groom significantly better conditions than others do. Whether with loans or with self-saved, on a wedding budget, a couple should set it based on which it can then make further planning. In any case, plan a certain amount of room to work with at the wedding.

In the second phase, a couple should find a suitable location, which, in most cases, represents a great challenge for many. On the one hand, a place must be found where one can imagine celebrating with family, friends, and acquaintances, on the other hand, it must also be a place that should fulfill several different criteria. Accessibility is an important factor. For the wedding guests, but also the bridal couple, it is not advantageous if the wedding location can only be reached after hours of driving. In addition, depending on the choice of location, it must also be clarified that the wedding guests have accommodation. This is especially beneficial for guests arriving from further afield. As a note, when it comes to a wedding location, a couple should also think about a guest list in advance. This does not have to be perfect at this point, but to find a suitable location, a pair should know an approximate number of guests.

Once the location is determined, a photographer is needed to capture all moments. When planning a wedding, finding a wedding photographer poses a serious problem for many wedding couples. After all, the market for photographers is very large. Either one knows someone who has already married and recommends his wedding photographer or a couple has to find a suitable photographer on one’s own. Before the search has started, one should first think about what is wanted, what should the wedding photos look like, and should it be dreamy or brightly colored. Every bridal couple has to make these decisions for themselves. Again, there is no perfect solution. One thing, however, should be clear to the bride and groom. The more the photographer is supposed to deliver, the more it affects the wedding budget.

The fourth phase is to find and choose your perfect band or DJ for the wedding. As music is something that has the highest effect on the atmosphere, it is important that a bridal couple also thinks about the musical arrangement of the evening. The bridal couple has the opportunity to get involved in a wedding band/singer or a wedding DJ. A wedding band and a DJ can always respond to the wishes of the guests. Not infrequently some have experienced that a quiet wedding celebration has turned into a fantastic wedding party. Many singers/bands have on their homepage a large selection of their repertoire which they can play. 81% of guests at a wedding say that entertainment is remembered the most, so more time should be spent to carefully plan this phase.

After the music is arranged, a wedding dress and rings have to be found. For almost every woman, buying a wedding dress is a unique moment. Accompanied by the maid of honor, best friends, and the mother, many brides make their way to the bridal shop. The choice here is very wide and for almost every price range there are appropriate clothes. It is important that if the bride has a specific motto planned for the wedding, it should be told immediately. So, the vendors can show the dresses for a vintage wedding or show some clothes for a boho wedding. If the bride opts for a dress from abroad, one should do so very early. The wedding dress will be tailored based on the mass one specifies and must then be sent to the bride by post. If the bride does not like it, or maybe it should not fit, enough time is still left to buy another dress. For a wedding, wedding rings are a crucial factor. Without them, no marriage can take place. The rings stand for a couple’s eternal covenant and accompany them for the next years. Not without reason, ones should, therefore, take the time when buying it. By setting up the wedding budget, the bride and groom would be able to determine the costs for rings. The value of the rings in the market has no limit. From gold to white gold, from silver to platinum, everything is possible.

Lastly, a couple has to make seats and table arrangements. This can usually be determined shortly before the wedding, but should still be well thought out. Especially if one should invite a lot of people, a couple should think carefully about which people can sit together and which not. With a large guest list, so-called family, friends, acquaintances, and work colleagues’ tables are suitable. It is important, above all, to ensure that people sitting together who already know each other, or if they do not know each other, will feel comfortable at least. A pretty simple to do which can have a lot of influence on the mood of the wedding.

In conclusion, to have a perfect wedding with beautiful memories, a couple should first determine the budget. The budget should be decided carefully and it should not go beyond a couple’s financial capabilities. If needed, take special wedding loans from the bank. The location of the wedding should be accessible and an accommodation should be provided in case some guests come from abroad. To find a photographer, firstly, it is necessary to know what is wanted, which quality, and what type of pictures. Keep in mind that the more is wanted, the more costly will it be. A band or DJ for music arrangement is a perfect solution because they can respond to any requests of guests. A wedding dress should match the motto of the wedding. If a dress from abroad is needed, buy it on time in case the dress does not fit the body. While buying wedding rings, a couple should be aware that they will wear the rings for a long time, so it has to be comfortable and at the same time affordable. Seat and table arrangements should be made to avoid a possible bad atmosphere. Carefully select who can sit with whom. Keep in mind that no wedding is perfect because perfection is not reachable, but striving for perfection should be a must.

Organizations exist to achieve some purpose or goal, someone has to define that purpose or goal and find ways to achieve it. A manager is that someone and does this by planning. Planning includes defining goals, establishing strategy, and developing plans to coordinate activities. Setting goals, establishing strategy, and developing plans ensures that the work to be done is kept in proper focus and helps organizational members keep their attention on what is most important.

Planning is a very essential function since it is the earliest of the basic functions of management which are planning, organizing, leading and controlling (Satyendra, 2015). Planning is called as the primary management function because it establishes the basis for all the other things managers do as they organize, lead, and control. Planning is first process in management and planning also the most important function in management. The processes is to decide what is to be done, when is it to be done, how it is to be done and who is going to do it. In planning, the organization will set the best alternative in order to carry out the managerial functions to achieve the predetermined goals. Without goals and the process to achieve the goals, there will be nothing to direct, organize and also to manage in the business.

Same goes to Etiqa, they also have their own vision and mission, objective and goal that need to be achieved. Etiqa plan to strengthen their position in local and international market by improve their service. Since Etiqa is insurance and takaful company. There were two type of product provided, which were personal and business. Example personal products are car insurance, education insurance, health insurance and etc. While for business product are divided into which is Group Medical insurance and Asset and Liability Protection. They set out their mission is “helping people to protect their assets, maintain their lifestyle and build a better future”. Etiqa’s brand promise that being Fast and East is not only as a tagline, but as a guarantee that Etiqa able to deliver a Fast and Easy in term of purchase, receive payouts and submit claims. Etiqa have to improve their service to ensure that they able to deliver a fast and easy in term of purchased, received payouts and submit claims to the customer. Furthermore Etiqa had expanded their branch into Singapore, Philippine and Indonesia and they will continue to look for such opportunities in the region.

Usually, managing is about influencing action. It is about helping organizations and units to get things done. Etiqa is a company that provides Insurance and Takaful for personal and business. According to Mintzberg’s Managerial Roles, as Technical Manager at Marine Cargo and Hull department, Mrs. Raja Lilis Suriani develops an information role. Information role involve receiving, collecting and disseminating data or information. For example she received or collecting the information from top management, customer or third party then she disseminating the data to her employee. Furthermore, Mrs. Raja Lilis Suriani also has a conceptual skill, where Mrs. Raja Lilis able to anlyze and diagnose complex situation. For example his manage to handle her employee until all her employee managed to meet their Key Performance Index (KPI). Furthermore, she also managed their customer well because every year, their customer will increase. Other than that she also has an interpersonal skill, where she able to work with, be a mentor, understand, and motivate other, both individually and group.

According to Balance Scorecard Institute (2019), strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes or results, and assess and adjust the organization’s direction in response to a changing environment. There are several steps Etiqa follow to make a planning in order to achieve their goal. First steps, they identify what are their current mission, goal and strategies. Their current mission is helping people to protect their assets, maintain their lifestyle and build a better future. While their goal is provide the fast service when customer needed and strengthen their position in local and international market.

Second steps, Etiqa doing an external analysis and an internal analysis. By doing external analysis, they know what the competition is doing, what is the current technology use, or what is current economic growth. For example, because of decreasing percentage in economic growth in 2015 and 2016, they have to think the new strategy to reduce the cost incurred and at the same time to care about their customer needs. For example there is an aircraft company claimed insurance because one of its airplane crashed or damage, they need to pay huge amount of sum insured for the claim made by the aircraft company, because of that they need to change their current strategy to the new strategy whether to collaborate with other insurance company. Furthermore with the population of its home market becoming more technologically savvy, it needs to update its offering to stay ahead of its peers. It include to provide a hassle-free and speedy claims process for their customers, the company has a dedicated claims care line which operates during office hours by staff trained in managing claims. While by doing internal analysis, Etiqa knows what were their strength and weakness. For example, over the years, Etiqa managed to earn recognition for excellence in providing insurance products and services. Etiqa had received numerous awards, the most recent being the Motor Insurance Award 2018 and the Motor Takaful Award 2018 by iBanding. By this strength they have opportunity to attract customer to use their product and the same time increase profit. The internal analysis also concerned people development. When they got the external analysis, they need to ensure that their people are ready to gear up towards the goal, mission and strategy.

Third steps, after doing external analysis and internal analysis, they formulated the strategy and implemented the strategies. Etiqa used the growth strategy and competitive strategy. Growth strategy is when organization managed to expand their product or number of market in the same business or new business. Etiqa Company grows using concentration, where they focused on its primary of business, increase the number of product and increase number of broker and agent. For example, with annual revenue RM3.36 billion on 2014 has used concentration to become one of the top conventional insurers in Malaysia. Furthermore, in horizontal integration, Etiqa Company grows by combining with the competitors. For example, in order to lower the risk of paying a large amount of insured claim made by customer, they combining the project with other insurance company such as AIG Malaysia Insurance Berhad and Prudential Insurance. Even though the profit gain is not too high, but the risk to pay a huge amount of claim is low. Etiqa Company has been so successful at this strategy. Furthermore, Etiqa Company also used competitive strategy where competitive strategy is an organizational strategy for how and organization will compete in its business. For Etiqa Company strengthen their position to compete with other insurance company such as Allianz or Prudential.

Final steps, are evaluating results. Top management assessed the result of the previous strategies, determined what changes were needed. For example on that year they unable to achieve their goal, which is to increase their revenue, they have to make a changes such as cutting job by remove all the staff and hire only skilled staff to minimize the expenses or reorganizing management structure.

Planning is the management function that involves setting goals and deciding how to achieve it. Setting goals and developing plans helps the organization to move in a focused direction while operating in an efficient and effective manner. There are planning process that Etiqa Company followed in order to make a planning to achieve their goal, mission and objective such as identifying their goal, doing analysis and formulated strategies. Etiqa Company used growth strategy and Competitive strategy and have been so successfully. In 2018, Etiqa received Best Takaful Company Awards at the International Takaful Awards 2018 in London. While in Malaysia, Etiqa’s General Takaful Business was given the title of Malaysia’s Best Islamic Takaful Institution at the Asset Triple an Islamic Finance Award 2018 was proven that they good in their planning process. Clear written goals, mission, objective and strategies will motivated that company to perform better in future.

Abstract:

Volkswagen is a German car manufacturer based in Wolfsburg, Lower Saxony (Germany). Volkswagen is the original and best-selling brand of the Volkswagen Group, Germany’s largest automaker and the world’s second-largest automaker.

In the text “Volkswagen: a drive down memory lane” is noticeable the worry about the “millennial fever” from social experts. They consider that this “millennial fever” has a result of driving consumer behavior in different ways because of the impact of the environmental forces on consumers and marketers.

Business world is forcing to a threat caused by the changes in today’s consumer. Nowadays, people are overworked, overstimulated and overwhelmed by all involves the Information Age. As result of these changes, people feel a yearning to turn back to simpler times. Therefore, today’s consumer feel a massive nostalgia wave to that old time without so much overwhelming technology and information.

Due to that important change, what should companies do? Firms should make efforts in innovation and apply a new product development strategy. Thus, companies go from a threat like changes in , today’s consumer to an opportunity like recreating products that help take consumers back to “the good days” according to current needs.

This essay explains the Volkswagen case. Following a timeline since 1950 until nowadays, it is interesting to analyze how Volkswagen adapts to these new changes according to nostalgia from today’s consumers and try to offer a new product that assists the new current need.

As a consultant illustrate how the information system integration could be aligned with information technology in reality at Volkswagen?

As it is mentioned in the summary of the Volkswagen Case, it is a fact that today’s costumer is changing due to a constant evolution in the technology area and the Information Age. Furthermore, in order to set a successful marketing strategies, firstly the company should focus on defining what are the most important consumer trends.

In the text “Volkswagen: a drive down memory lane” is noticeable that the most important consumer trend for Volkswagen is nostalgia. Consumers feel better when they think in those days without too much Information. Consumers can relate those days to the design of cars offered by Volkswagen, as for example the Volkswagen Beetle characterized by a simple design and considered a low cost car. However, the company saw that association as an opportunity. That was the reason in order to focus on nostalgia and emotions, and they made a development of a product and proposed a New Beetle, totally similar to the old model but with modern features. In this case, “modern features” are also important to mention: these features like high technology and multi-stereo speaker, airbags, power outlets for mobile phones, etc. are also relevant for today’s consumers, so it is possible to say that another point in consumer trends would be the interest for electronic and safety appliance that Volkswagen cars should have in. In a future, Consumer trends will tend to focus on technology regarding electronic cars, quality, safety or performance. So, the trends for the cars industry will be focused on high tech, and this is an important thing to take in mind in the future of this area.

As conclusion, the consumer trends can be identified as, on the one hand, nostalgia and emotions (regarding nostalgia as what case study explained) and on the other hand, the trends to innovation and digital features, as for example, proposal regarding electronic cars.

However, in order to get successful marketing strategies, there is four step process to address trends (Burton, 2017). In this question, it is going to be explained every step in detail in order to offer a current consumer trend and can set marketing strategies following a series of criteria for a strategic success.

4 Step process to address trends (Burton, 2017):

1. Identify trends that matter: Due to the evolution of the information since a lot of years, people are starting to be overloaded of this trends. As I explained in the summary, there is an increase of the feeling to come back to the “good days” without information. This yearning to return to simpler times has produced a change in multiple area of consumer life (Ripple Effect). This excess of technology has a strong impact in the consumers, being the nostalgia an emotion of more and more consumers (impact and scope). Today’s consumer demand coming back to those days and remember the good times. Due to this fact, the technology expansion is not going to stop or even decrease, it seems that this nostalgia trend will last in a long run term (endurance).
2. Conduct two separate explorations: the main goal of customers is to be less overworked and overstimulated by the Information Age. Although they hail the benefits of the hired 90s, consumers are tired and overwhelmed of so much Information. However, due to this nostalgia trend, Volkswagen proposes a New Beetle as they already introduced it in 1950. In 1950, Volkswagen produced a Beetle with a simple, bug like design and low cost engineering, which it was totally contrary to the American car proposal. Moreover, this model had something that competitors did not: endearing qualities. Due to the success of this old Beetle in 50s, now Volkswagen repeated the same strategy: as the most important consumer trend is focused on nostalgia, they have produced a New Beetle that resembles the original outwardly and has a pull that is purely emotional, according to the new current needs.
3. Compare results: Due to the New Beetle is really similar to the 1950 model, consumers can identify this car to this current emotion: come back to those days. Although the new model seems like an old one, New Beetle owns to fourth generation VW Golf with modern features: high tech multi-speaker stereo, airbags, power outlets for mobiles phones, etc. This is totally a good idea in order to respond to the currents needs: customers do not only want to have an “old” car reminiscing those good days, but a car that is good equipped with safely structure as well. Thus, consumers can relate the key aspect of consumption to this new proposal of New Beetle from Volkswagen.
4. Isolate Potential Strategies: After Volkswagen has gained perspective on how important concepts pertaining to your category interact with vital trend-related changes in consumer attitudes and behaviour (Burton, 2017) it can determine which of three innovation strategies to pursue:
   1. basic value propositions remain meaningful
   2. growing disconnect between your category and consumer
   3. Aspects of category clash.

In this case, Volkswagen should focus on aspects of category clash, because they introduced in 1950 a model which had the same values. Now they are presenting a new model similar to the 50s one, so they should reaffirm core values.

Once the most important consumer trend has been defined, I am going to explain which criteria Volkswagen should follow in order to set marketing strategies.

1. First of all, they should fit to market environment. As I have mentioned before, currents needs are related to nostalgia. Then, they propose a new model than can relate to those emotions.
2. Secondly, timing. Volkswagen is offering this model according to the requirements of this time. Innovation is central and they have developed it for a long period of time (since 1950 until nowadays)
3. Thirdly, effectiveness. They are responding to the current needs, so they have a high satisfaction from customers. This is very important to survive and grow.
4. Finally, organizational effectiveness. They have explained the core competencies that they have. In addition to this, they possess technical and market skills as they have shown with the introduction of this new model.

Discuss the impact of Information Technology (IT) change in perspective of procurement strategy, car manufacturer’s business processes, and overall organization at Volkswagen?

The marketing environment consists of the actors and forces that affect a company’s capability to operate effectively in providing products and services to its customers. It is possible to study the marketing environment through the following classification: On the one hand micro environmental, which it is focused on: suppliers, intermediaries, competitors and the last one, customers. On the other hand, the macro-environment, which consists of: demographic, economic, socio-cultural, politic-legal and technological forces.

In order to offer the product, required companies should not only consider consumer trends, but also take in mind the forces of marketing environment too. Thus, firms can take advantage of emerging opportunities and minimize potential threats in order to develop successful consumer relationships.

In the following lines, it is going to be defined every single part from every analysis: micro and macro environment:

Micro environment:

One of the goal of companies is to build relationship with customers by creating value and getting a high satisfaction from them. In order to get this objective, some analysis from the microenvironment is required.

• Supplier:

Suppliers are needed in order to get resources necessary to produce goods. In this part, company should analyze what it would be better: purchase resources to suppliers or make its own. In case the company decides to buy, it is really important to minimize the problems with them. Marketing can be affected since they form an important link in the company’s overall customer value delivering system.

• Intermediaries:

Intermediaries can include: resellers, physical distribution firms, marketing services agencies or financial intermediaries. All of them can be chosen by the company in order to provide a distribution service. This kind of company help to deliver the products to final buyers. This concept is similar to suppliers: they are really close to marketing due to the component of value delivery system. So in this case, companies should partner effectively with intermediaries to optimize the performance of the entire system.

• Competitors:

Companies must provide better customer value than competitors. Companies should not just focus on offer products to the target market, but they should also gain competitive advantage and get a better position in the market than competitors.

• Customers:

It is really important for companies to be flexible and can adapt to changes from customers. If there is any fail in that, firms can loss customers due to the low satisfaction offered. Customers’ needs change constantly. Companies must put efforts to understand their customer’s needs through research and monitoring. Understanding customers helps an organization to develop products and services that satisfy customers, then this part is one of the most activities of Marketing.

· Macro environment

Building a good relationship with customers and offering a high satisfaction is necessary to study the consumer trends as well as micro environment analysis. It is also important to analyze the macro environmental part or external environmental forces. The macro environment is formed by: demographic, economic, socio-cultural, political-legal, technological forces and natural. This is also called DESTEP Model.

• Demographic:

Demographic forces is focused on the study of human populations: size, density, age, gender, occupation and statistics. This is an important point for marketing due to changes in terms of rapid world population growth or in demography and all that mean change in the market. Thus, the need for adjusted marketing strategies is required. In a general way, the most important demographic trends that affect market can be summarized in: world population growth, changing age structure, changing family structures and geographic shifts in population.

• Economic:

Economic conditions play a significant role in the marketing because for example, a high economic growth gives as result a higher level of employment and income affecting to marketing in a positive way. Within the economic forces can be included: purchasing power and spending patterns. However, Marketing environment is also influenced by many other important economic factors such as: Interest rate, money supply, price level, exchange fluctuations, currency devaluation, prosperity, recession or inflation, etc.

• Socio-cultural forces:

This force is related to factors that affect society’s basic values, preferences and behavior. Regarding the Marketing world, new demands are created and old ones are lost, so it is essential for the marketing management to prepare marketing plans according to changes in the needs of the society affected by these socio-cultural forces. The main aspects of social environment can be explained as: changes in the life style and social values, major social problems and the last one, growing consumerism.

• Politic and legal environment:

Marketing decisions are strongly influenced and affected by developments in the political environment, for example: government monetary and fiscal policies, import and export policies, legislation controlling natural environment, etc. Therefore, before entering into a new market (or country), companies should study the government policies and laws in order to set successful marketing plans and strategies.

• Technological forces:

Technological forces are related to factors that create new technologies and thereby create new product and market opportunities. In this case, this force and marketing are concepts really close. However, technology is constantly changing and that has an impact in the marketing plans. Change in technology means change in production and production possibilities, cost, quality, manufacture process, etc. However, on the other hand, technological changes can also affect to the life style and consumption patterns, and then have an impact in marketing activities like distribution system, research, packaging, pricing, advertising, etc. All companies should take in mind the technology force in order to respond to these changes quickly and keep themselves in the market.

• Natural Forces:

Natural forces are natural resources which are needed as inputs by organizations. The marketing activities should focus on customer’s interest and society’s interest too. Nowadays exists a high worry for the environment, therefore it would be recommendable to take some measures to protect it like for example: check the environmental consequences of the product (packaging or production process), raise price to cover environmental cost, introduce the environmental criteria while the ingredients products, design or packing are being decided, and also develop ecologically superior products.

This is the marketing environment that companies should consider in order to successfully develop and maintain relationships with their consumers. As I have explained along question two, every force from micro and macro environment analysis has an impact in the marketing activities. So Marketing departments must take in mind this analysis in order to offer a good value consumer and high consumer satisfaction.

Volkswagen, despite high reputation of the company and being one of the most important manufacture car on the world, there are some facts that show Volkswagen did not pay too much attention to some variables of the business environment. The more noticeable fact was the scandal regarding cheating emissions, where in 2015 the company was accused by the Environmental Protection Agency (EPA) that many VW cars being sold in America had a ‘defeat device’ – or software – in diesel engines that could detect when they were being tested, changing the performance accordingly to improve results. The German car giant has since admitted cheating emissions tests in the US (BBC News, 2017).

However, in order to define correctly how Volkswagen has responded to their environment in the last ten years, every force is going to be explained carefully.

Regarding to micro environment: Volkswagen made some mistakes regarding to the suppliers. As I have mentioned in the supplier part, some failure in this part can delay the process and then offer a bad delivery system, and that was exactly what happened to Volkswagen. They had some problems with the suppliers and they lost a lot of money. Finally, some days after that, they could reach an agreement (Justin Huggler, 2017). Volkswagen also has important competitors: Toyota, Seat, Skoda and Ford. However, Volkswagen has a strategy well defined in order to get a high position in the market in comparison to its competitors. Volkswagen define its strategy like: Volkswagen cars are made for the road. This is why our engineers developed all of our engines with a prolonged service interval of 15,000km which guarantees our customers more time for driving our cars and less time in the workshop – hence less money for service costs. Due to our low fuel consumption we make sure that the total cost of ownership is kept at a minimum level. (Volkswagen-me.com, 2017). Finally, the last point, customers, they tried to focus on responding to its customers’ needs regarding low fuel consumption, however, they should put more efforts in getting a high position and respect in that point since they were accused by the “Volkswagen scandal”. Due to this big mistake, they have lost a lot of customers due to the low customer satisfaction. Customers feel angry and cheated because they bought a car for a high price to respect the environment and the result was just the opposite.

On the other hand, with regard to macro environment, there are many points to take in mind in order to define the DESTEP Model since they did some mistakes in some points of this model. Starting with economic forces, Volkswagen and, in general, the manufacture car industry is not in at its best moment caused by the economic crisis. In this case, people have not enough money to buy a car. Volkswagen responded to that trend offering a high line cars (with high prices) and low class cars (with low prices). In this economic part, it is also important to mention that Volkswagen has assumed different interest rate and exchange rates since they sell to countries outside the European Union as US. Secondly, socio-cultural forces, society for Volkswagen is big and different from place to place. People have preferences and values that can be changed, and companies have to be quick and adapt to the consumer changes. In this case, as it is explained in the text, Volkswagen saw that customers wanted to come back to those days without too much information, and then offered to customers the ‘New Beetle’ car that they were looking for. However, as they did a good adaption to the current needs, they also did a big mistake when they said that offered a good car for environment and that was not true since they did a cheat in emissions in tests. Regarding to another point of environment, politic and legal forces, Volkswagen did not respect the politics and regulations related to the level of contamination, as I explained before, they did a cheat in the emissions levels. Related to that point, natural forces have been affected due to this mistake because Volkswagen did not respect the environment doing that, since they contaminated more than allowed, getting bad consequences for environment and low customer satisfaction. In a demographic way, it is important to say that involve all people with income and families in general, but a common feature is related to the worry of environment. As they did not respect this important points, demographic force can be considered damaged also.

Finally, the last force to mention is technological force. In this case, Volkswagen develops its product with a high technology and also innovation. This force is fulfilled and respected by the company since they offer good cars as people demand.

As a conclusion of this question, Volkswagen has responded to the business environment making some big mistakes in the last ten years, being the most important one the scandal related to cheating emissions which affected to many environmental forces.

Describe the ways Volkswagen tried to cut down expenses, increase productivity, better coordination and attainment of competitive edge?

A costumer led organization is focused on needs and not in products (Burton, 2017). As we can see on the case study, the new product offered by Volkswagen recently is related to current needs from customers. Customer have nostalgia from days where they were not overworked. In this case, as the company responds to those needs and focus on current needs, I would say that Volkswagen is a customer led organization.

The evidences are related to what I have already explained along the paper: customers feel nostalgia and they express their wish to come back to the days with any models, cells or pagers. The proposal of Volkswagen was a new product development: offer a New Beetle similar to that introduced in 1950. With this similar product, they tried to take advantage of the strong emotions and memories of that times gone. This new model is purely emotional and in this case, Volkswagen has correctly developed a product according to currents needs.

My opinion about Volkswagen being a consumer led organization in this case is also supported by marketing strategies. Marketing decisions taken by Volkswagen are directed to customer with a strong feeling of nostalgia. It is possible to see that different advertisements for the New Beetle make reference to the old Beetle. Some of that advertisements could be: “If you sold your soul in the ’80s,’ tweaks one ad, ‘here’s your chance to buy it back” or “Less flower, more power’, and ‘Comes with wonderful new features. Like heat”.

Conclusion

Volkswagen is an important and successful company within the manufacturing car industry. As it is explained along the essay, there are some positive points for Volkswagen, however, on the other hand, there are some other negative points which have seriously affected to the company.

Starting with positive points for Volkswagen, as the text explains, Volkswagen could identify the real needs of the customers, trying to increase the customer value proposing a product responding to current needs. The current needs from customers are related to nostalgia. Then Volkswagen proposed a car which is really similar to a model which was introduced in 1950. The new car is called: New Beetle and makes reference to that car proposed in 50s. Although the car is like the old one on the outside, the model has a lot of modern features. With this New Beetle tries to respond the new demand from customer according to their longing for nostalgia.

On the other hand, there are some mistakes made by Volkswagen that could damage its image. As it is explained, the “Volkswagen scandal” had a really bad repercussion, affecting many environmental forces above all. Cheating the emissions in the tests, resulted in a high contamination of the environment. As a final result, Martin Winterkorn, Volkswagen director, apologized to all customers and tried to survive of this situation. Some measures he proposed after the scandal was to change the slogan from “Volkswagen. Das Auto” to only “Volkswagen”.

Nowadays Volkswagen puts efforts in continuing with the production respecting the marketing environment forces and take in mind the current needs from customers as well, in order to offer the correct product to the right people in every moment.

References

1. Anon, (2017). [online] Available at: https://www.linkedin.com/pulse/20141002172925-63199408-nostalgia-marketing-reaching-back-to-move-forward [Accessed 26 Jan. 2017].
2. BBC News. (2017). Volkswagen: The scandal explained – BBC News. [online] Available at: http://www.bbc.com/news/business-34324772 [Accessed 29 Jan. 2017].
3. Burton, H. (2017). Customer Led Business.
4. Burton, H. (2017). So who is Todays consumer?
5. BusinessDictionary.com. (2017). What are consumer trends? definition and meaning. [online] Available at: http://www.businessdictionary.com/definition/consumer-trends.html [Accessed 26 Jan. 2017].
6. Claessens, M. (2015). The Macro Environment – Six Forces (DESTEP). [online] Marketing-Insider. Available at: https://marketing-insider.eu/macro-environment/ [Accessed 29 Jan. 2017].
7. Contributor, P. (2015). Political Factors Affecting Business. [online] PESTLE Analysis. Available at: http://pestleanalysis.com/political-factors-affecting-business/ [Accessed 29 Jan. 2017].
8. Justin Huggler, (2017). Volkswagen settles supplier dispute that brought factories to a halt. [online] The Telegraph. Available at: http://www.telegraph.co.uk/business/2016/08/23/volkswagen-settles-supplier-dispute-that-brought-factories-to-a/ [Accessed 29 Jan. 2017].
9. Kotler, P. and Armstrong, G. (2006). Principles of marketing. 1st ed. Upper Saddle River, N.J.: Pearson Prentice Hall.
10. Volkswagen-me.com. (2017). Volkswagen Competitive Advantage – Fleet – Volkswagen Middle East. [online] Available at: http://www.volkswagen-me.com/en-vwme/volkswagen/fleet/volkswagen-competitive-advantage.html [Accessed 29 Jan. 2017].