COPLEY MANUFACTURING

COMPANY
Strategic Planning
 Analysed By:
} Rohit Chandnani 15

} Nikhil Chandra 16

} Samadhan Damdhar 20

} Joanne D’Souza 26

} Umakant 27

} Vineet Dubey 28
 Introduction
} Manufacturer of cutting tools and other industrial
parts

} Established in 1919

} Rapid progress in 1960 and 1970

} 8 Divisions with considerable autonomy

} Initiated formal planning in 1977

 Timeline of Events
Time
KEY EVENT KEY
Perio
d
 Timeline: 1977 to 1980
Russel Wilde initiates Growth through M&A
1977
Formal Planning Objectives &
Potential
Stanley Burton asks Analysis useful as
Mid for 10 yr financial indicated large cash
1977 forecast (ROI , Sales, flows, Mature
Profit, Cash Flow) markets & cyclical
sensitivity.
Late Director of Corporate Structural change.
1978 Development-Charles Sagan concerned with
Sagan, reports to Growth through
Burton M&A.
Sagan begins Structural change.
Late reporting to Albert. Sagan & Albert agree
1980 Chairman, Samuel Planning as way of
Savage, asks for 5 yr life. Unnecessary
 Review
} No defined corporate goals

} Unnecessary voluminous data asked for

} Inconsistent leadership

} Planning Range 10 years: period too long

 Timeline: Early 1981
Corporate Planning Guide move
Committee with towards formal
Feb Sagan as Chief planning.
Coordinator. Well represented
1981
Weekly meetings to committee, insights of
define “Process of technology, economic
Formal Planning” & trends and finance.
“Corporate Goals” Critical issues
Memo from Albert to tackled.
Clear
division heads stating communication to
Mar plan of action. various divisions
Survey divisional explaining need &
1981
history & attitude to future course of action
aid in preparing
“Provisional Plans”
 Timeline: 1981contd.
Visit to divisions to Consistent Effort to
introduce concept of introduce concept.
Mid formal planning by Divisions to decide
1981 Albert & Sagan. role of staff in process
Divisions to submit 5- & format of 5 yr- No
yr plans by Oct 1981. clear directions.

November - Planning Lack of Uniformity,

Review Meetings to Lack of Consistency
evaluate plans. in attendance, Lack
Late December – Planning of representation
1981 Response Meetings to from other divisions.
comment on plans. Unable to effectively
Mixed Responses. mould attitudes.
 Review
} Corporate Goals still not developed

} Formal Planning Structure beginning to form

} Timely communication

} Lack of uniformity

} Unable to create a consensus

 Timeline: 1982
Corporate Planning Organizational
Early moved up, Creation of Changes that
1982 new staff functions, impacted planning
Creation of additional process- “were
divisions, designations temporarily
disruptive”.
Numbers Orientation Further Changes in
Marc to Strategic Concepts. process,
h 3 Phase Planning Clear
Cycle Communication
1982
Strategy about planning cycle
Development, & objectives of
Completion
Quantitative,ofAction.
Phase Reduced efforts.
process.
July
1. Discontinuation of
1982 Business Downturn Cycle.
Staff depts to
 Review
} Corporate Goals still not defined

} Lack of commitment towards plans

} Uncoordinated structural changes

} Irrelevant to have planning process in staff

departments before line departments
Timeline: 1983
Committee Inactive- Further changes in
efforts to formulate leadership &
1983 “Corporate Goals”. structure of
Sagan working with planning activities.
Albert, while planning No Goals defined.
influenced by Tyler.
Revised formats for
Product Group
strategy and review
meetings.
Pre Meeting to New format to ensure
explain strategy & congruence in
1983 review Product Line planning. But
Study. strategy revealed for
Presentation of the first time in pre
divisional plan. meeting
 Timeline: 1983
Sagan working with Further changes in
Albert, while planning leadership & structure
Early influenced by Tyler. of planning activities.
1983 Revised formats for Efforts to formulate
Product Group “Corporate Goals”.
strategy and review
meetings.
Pre Meeting to New format to ensure
Late explain strategy & congruence in
review Product Line planning. But
1983
Study, followed by strategy revealed for
divisional plan the first time in pre
presentation. meeting
Dec 2-day conference to Goals formulated.
1983 review divisional FINALLY!!!
plans.
 Review
} Corporate Strategy communicated just before
presentation of divisional plans

} No goal congruence created

} Positive Indicators:
†More precise data
†Structured format
†More emphasis on analysis & discussion
†Gradual shift to emphasis on Line Management
 History in Numbers

7 Number of Years where Goals were Undefined

4 Number of Plans

4 Number of Changes in Structure

3 Number of Revisions in Planning Process

Appraising the Formal
Planning Efforts
 Problems in the
Process
} Undefined Corporate Goals

} Redundant & Ineffective Data Collection

 Problems in the
Process
} Inconsistencies in Processes

} Lack of Commitment
 Problems in the
Process
} Lack of Goal Congruence

} Limited Focus on Line Functions

 Problems in the
Process
} Numerous Organisational Changes
Sa muel K Sav ag e
(Chairman of the Board)

Stanle y B urto n
(President)

Cha rle s N Sa gan Albe rt

(Director Corporate Development) (Vice President)

Tyl er
(Cutting Tool Division Head)
 Problems in the
Process
} Organisational Change: 1980
Sa mue l K Sa vage
(Chairman of the Board)

Stanle y
Burto n

Albe rt
(Vice President)

Ch arle s N S agan Ty ler

(Director Corporate Development) (Cutting Tool Division Head)
 Organization
Structure Sa
1982
mue l K Sa vage
(Chairman of the Board)

Albe rt
(President)

Ch arle s N Sa gan Tyle r Two VP’s

(Six Divisions)
(Director Corporate development) (Vice President)

Inclusion of seven persons into new corporate executive Positions proved

out to be disruptive to planning effort
 Organization
Structure Sa
1984
mue l K Sa vage
(chair man of the Board)

Albe rt Fred Fishe r

(President) (Director Corporate development)

Tyle r
(Exec. Vice President)

A B
(Division GM) (Division GM)
 Problems in the
Process
} Other Issues:
†Unprepared for Business Fluctuations
†Frequent Changes
†Time Consuming Efforts
†Unnecessary Paperwork
†Unclear Leadership
†Problems due to organisational changes:
Assimilating acquired company
Organising split of Cutting Tools Division

LONG-TERM
VISION????
 What They Did Right
} Formulated organisational goals

} Reduced & precise data collection

} Encouraged discussion for evaluation of plans

} Use of strategic analytical tools eg: SWOT

} Increased involvement of line departments

 Evaluation: Post 1984
Formulated
corporate goals & Developed a
strategies based schedule for
on divisional communicating &
plans evaluating plans

Strategy Performance

If processes are
followed, organisation
structure is maintained
Organisational and MCS enforced –
Structure put in Strategic Planning can
place firmly be a success.
Recommendations
Recommended
Process

STRATEGY Goal
FORMULATIO Strategy
N
Policies

MANAGEMEN
T CONTROL Implementation of Policies

TASK Efficient and Effective

CONTROL Performance of Individual Task
 Process of MCS
Corporate
Goals

Strategic
Formulation
If Dissatisfactory

Strategic Planning

Controllability

Reward Satisfactory

Budgeting Performance Measurement

 Process of MCS
Corporate
Should be developed by
Goals
Top Management along
with Divisional Heads
Strategic
Formulation
If Dissatisfactory

Strategic Planning

Divisional Goals

Reward Satisfactory

Budgeting Performance Measurement

 Strategic Planning
} Written Descriptions of Organisational Goals &
Strategies

} Systematic & Process Oriented

} Less Paperwork, More Discussion & Analysis

} Developing Alternatives rather than Making

Projections
 Strategic Planning
} Involvement of Line Functions in Planning

} Staff Functions as Catalysts & Advisors

} Commitment of Top Management

} Clear Leadership & Organisational Heirarchy

Thank You!