An example of formulating derivative plans is when a business decides to increase sales of a product. The plans supporting this main goal, such as recruiting and training employees and launching marketing campaigns, are derivative plans.
Derivative plans are the supporting plans formulated for executing a primary plan. Once the main strategic direction (the primary plan) is decided, the subsequent logical step involves developing these detailed, operational plans that ensure the primary goal can be achieved.
Understanding Derivative Plans
Derivative plans flow directly from the primary plan. They translate the broad objectives of the main plan into specific, actionable steps. Without well-defined derivative plans, a primary plan often remains just an idea without a clear path to implementation.
How Derivative Plans Support Primary Goals
Think of a primary plan as the destination you want to reach. Derivative plans are the detailed maps, steps, and preparations needed for the journey.
- Primary Plan: The overall goal or strategy.
- Derivative Plans: The specific actions, resources, timelines, and responsibilities required to achieve the primary plan.
Example of Formulation Based on Reference
According to the provided reference:
"...e.g. if the basic plan is to increase the sale of a product, the derivative plans would be to recruit and train employees, launch an..."
This example clearly illustrates the relationship:
- Primary Plan: Increase the sale of a specific product.
- Derivative Plans:
- Recruiting and training employees (e.g., sales staff, customer service).
- Launching... (likely marketing campaigns, promotional activities, etc., based on context).
These actions (recruiting, training, launching campaigns) are necessary steps taken because the company has a primary plan to increase sales. They are derived from and support the main objective.
Breakdown of the Example
Let's look closer at why these are derivative plans in this context:
- Recruiting and Training Employees: If the plan is to boost sales, the company might need more salespeople, or the existing team might need new skills to sell the product effectively. This plan is a direct result of the sales goal.
- Launching Marketing Campaigns: To increase product sales, potential customers need to know about the product, its benefits, and perhaps special offers. Marketing activities are formulated specifically to drive sales numbers up.
These are just two examples, and a comprehensive set of derivative plans for increasing sales could also include:
- Developing new sales channels.
- Adjusting pricing strategies.
- Improving product features or quality.
- Enhancing customer support processes.
- Managing inventory levels to meet increased demand.
Each of these activities is planned after and because the primary plan to increase sales was set.
In summary, the formulation of derivative plans involves breaking down the overarching primary goal into concrete, supportive tasks and initiatives.
