corporate planning and strategy

9
RISHITA SHARMA 1011316 1 Corporate planning in construction

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Page 1: Corporate Planning and Strategy

RISHITA SHARMA

1011316

1

Corporate planning in construction

Page 2: Corporate Planning and Strategy

CORPORATE PLANNING:

It is the continuous process of making present risk taking decisions

systematically and with the greatest knowledge of their futurity; organizing

systematically the efforts needed to carry out these decisions and measuring

the results of these decisions against the expectations through organized

system feedback – Peter drucker

corporate planning is the process of managing the future of

organization.

Page 3: Corporate Planning and Strategy

3

Corporate planning is a systematic approach to strategic decision making.

Long range planning and corporate planning Long range planning in most cases assumes that the current

environment in relation to the organisation will continue as in the past.

Long range planning is simply a forward projection of existing operations.

Page 4: Corporate Planning and Strategy

Failure of corporate planning

Strategic plan usually introduced by CEO who might have had exposure to it in a management development programme(MDP).He hands over the task to a planner and does not get involved

Some companies prepare a strategic plan and circulate it among senior managers and externals consultants for their comments. This approach fails since most of the time senior managers neither have time nor the skills to look at the future. Most of the time, they are found to be good at budgeting but are unable to make an assessment of external environment.

Many organisations emphasise on hard data. In a strategic planning exercise, it is difficult to provide hard data in every situation. This results in doubts being raised by senior management in the organisation

Page 5: Corporate Planning and Strategy

Failure of corporate planning

Top management becomes so engrossed in current problems that it does not spend enough time on strategic planning process and the process gets discredited among the other managers and staff.

Failure to modify the strategic planning system as conditions within the company change.

Failure to create an appropriate climate for the success of strategic planning.

Chief executive may spend too little time on planning. Corporate planner tries to do all planning by himself or he

may be of a low calibre Company tries to move into an advanced management area

before it is ready

Page 6: Corporate Planning and Strategy

In construction industry

Rise in interest rates hits realty sector The uncertainity in property market is giving jitters to

property funds. Property funds have increased their IRR expectations from

(20-22)% to (27-30)% EU and US investors were happy with (5-6)% yields, now they

want (8-9)% DLF,Unitech announce US $4 billion fundrising through PE in

this FY

Page 7: Corporate Planning and Strategy

Parsvnath to venture into retail, plans to open 10 stores in this FY ,21 commercial projects of area 4.77 million sq ft, appoints new director and concessional pacts with DMRC to develop properties

Unitech to open 15 malls in the coming years with Rs 20,000 crore of investment

Purvankara to setup fully owned subsidiary Provident housing and infrastucture Ltd,for affordable housing segment with investment of about Rs 8,000 crore,also to invest Rs 1,000 crore for hospitality.

Puvankara arm goes PE route to raise Rs 750 Crore to aquire land for its affordable housing project

Page 8: Corporate Planning and Strategy

GMR acquired 50% in the Netherlands based Intergen GMR energy has earmarked Rs 13 K Crore for generating

3300 MW of power, plans to raise Rs 2.6 K Crores from private placement of the equity

Ansal API to raise Rs 2,500 crore through PE investors to develop SEZ and IT parks.

Raheja plans Rs 4,500 crore SEZ World`s largest cement maker Lafarge have brought L&T`s

RMC business as a part of its expansion plans

Page 9: Corporate Planning and Strategy

JK Lakshmi cement to put in Rs 1,000 Crore for 5 RMC plants through internal accruals

PremjiInvest,PE fund to pick up the stake in construction companies

‘Swiss challenge’ ruled out in airport PPP projects Property firms fast-track projects to beat slowdown (30% in

last six months)