Strategic planning for Unilever United Arab Emirates Ltd

For the goal of this record of 'Strategic Planning' for the Ed-excel Level 7 Prolonged Diploma in Strategic Management & Control I have chosen Unilever United Arab Emirates Ltd.

The company possessed a turnover of Rs. 23. 3 bn (Euro 309 mn) in 2008, and likes a respected position in almost all of its core Home and Personal Attention and Foods categories, e. g. Personal Wash, Personal Good care, Laundry, Beverages (Tea) and Snow Cream. The business manages through 5 regional office buildings, 4 wholly owned and 6 third party developing sites across Midsection East.

http://www. unileverme. com

TASK 1

(A) TOOLS TO ANALYSE THE CONSEQUENCES OF CURRENT BUSINESS PLAN, (B) TOOLS TO BUILD UP STRATEGIC OPTIONS FOR THE BUSINESS, (D) OPTIONS TO CREATE BASIS OF FUTURE ORGANIZATIONAL STRATEGY.

George (1997) Pursuing is the five step model to analysis effects of business plan, develop future strategic options and options to form basis of future organizational strategy. This five step model was offered.

1. Measure the external framework, in conditions of opportunities and threats (e. g. from

environmental check, institutiogramme, coverage matrix and/or stakeholder analysis)

2. Prioritise and cluster opportunities and threats

If you have more than 15 of every, prioritise (e. g. through voting)

Brainstorm which opportunities and hazards can be related to each other

Who should participate in the next step? It is often hard to use step two 2 with

a group of 15 or more people, although that is ideal. Otherwise a main team

of 1-5 people can do step 2 2. However, a process facilitator shouldn't do it

alone in a rest.

3. Develop proper options. Formulate proper options that:

React to one or more opportunities and/or threats

Are activities (or results) related to end result, input, mission, perspective and/or relations

Are easy (clearly relate with opportunities and/or threats), but

Are usually creative (there may be more than the most evident response. And you

may consider new solutions that respond to new movements, opportunities, and dangers)

You may develop several options relating to the same opportunity or threat

For each hazard or opportunity try to formulate at least one proper option

4. Rate your options in conditions of relevance to (remember that this is merely a preliminary

selection) in the SOP matrix

The conditions in your BQ, and/or

The mission and aspiration of the organisation

5. Follow-up

Implement interior organisational evaluation of critical elements

Proper orientation (SOR), the ultimate collection of a (set of) proper options

TASK 2

(A) ANALYSE THE NEEDS AND EXPECTATIONS OF STAKEHOLDERS OF AN ORGANIZATION.

Each stakeholder brings different things to an organisation in search of their own passions, takes dangers in doing so and obtains certain benefits in return but is also free to withdraw support when the conditions are no longer favourable.

Shareholders expect increasing value of their investments.

Customers expect high quality and reap the benefits of product or service they receive in return of what they spent on it.

Employees desires good pay and conditions, good command and job security but are absolve to withdraw their labour if indeed they have a legitimate grievance or may seek occupation somewhere else if the leads more favourable.

Suppliers expects payment on time, repeat orders and esteem but may refuse to supply or cease source if the terms and conditions of sale are not honoured.

Society provides a licence to operate in return for benefits to the community as a whole and a value for ethical prices, people and the environment.

(B) propose a suitable composition for a stratefy plan that ensures appropriate involvement from all stakeholders of an organization.

The substance of organizational design is the manipulation of a series of guidelines that determine the section of labour and the achievements of coordination. By on a regular basis remember the organizational requirements of the Unilever UAE I'd like to suggest a 'Matrix Organizational Structure' predicated on the grouping by the marketplace & functions.

This proposed composition will provide the Unilever UAE's end marketplaces and because the workflow interdependencies are the important ones to some extent and the business cannot easily handle them by standardization implementing this structure will tend to favour the market bases for grouping to be able to encourage shared adjustments and immediate supervision.

By implementing the suggested organizational composition the Unilever UAE may take benefit of the followings key benefits;

Because key people can be distributed, the task cost is minimized

Conflicts are little, and those necessitating hierarchical recommendations are more easily resolved

There is a better balance between time, cost and performance

Authority and responsibility will be shared

Stress is sent out among the team

Improved ability to gain access to resources over the old efficient and geographic silos.

better coordination on shared technologies over the organization (such as IT)

Faster decentralized decisions

Improved access to a diverse selection of skills and perspectives.

Improved global or local projects

Increased communication and coordination over the business

Reflects the needs of regional customers

Ref; Christian Scholz, Leadership management in Europe, 2008, page 248-249

(c) DEVELOP Standards FOR REVIEWING Probable OPTIONS FOR A STRATEGY PLAN.

An company is feasible if it can survive in a particular type of environment. Although its lifetime is separate, such that it enjoys some type of autonomy, it cannot endure in vacuum pressure. Hence in my opinion apart from the typical SWOT and PESTL analysis, following benchmarking criteria should also be used for looking at potential options regarding a management strategy.

Managerial, operational and environmental types, diffusing via an institutional system tend to equate; they should be designed to achieve this task with minimal damage to people and cost.

The four directional stations carrying information between your management device, the operation, and the environment must each have an increased capacity to transmit a given amount of information highly relevant to variety selection in a given time than the originating sub system has to generate it in that time. Wherever the information continued a channel with the capacity of distinguishing confirmed variety crosses a boundary, it goes through transduction; all of the the transducer must be at least equivalent to the variety of the route.

Further compared to that to review the options for the management strategy and organizational structure we must ensure that the perfect strategy obviously considers the age and size of the business, technical systems, environment and the regulating framework. Because the Unilever UAE has a long existence history and it is operating at a multinational level hence the suggested management strategy should more elaborate its composition; that is' a lot more specialized its jobs and units and the greater developed its administrative components.

The possible strategy must avoid technical uncertainties; it will provide which production and operational technology will prove to be the most effective? It should be free of strategic doubt. It the potential management strategy should be plainly identified and different businesses are groping with different approaches to product/market placement, marketing, servicing, etc, as well as bets on different product configurations or creation technologies.

Unilever's pressure to build up products to meet demand is so great hence the suggested management strategy should make sure that bottlenecks and problems are handled expediently somewhat than therefore of an examination of future conditions. Likewise putting into action new strategy costs thousands and thousands to the organization hence it should make sure that reduce operative cost and increase the efficiency of the organization.

Ref: Tag A. Huselid, The labor force scorecard, 2005, webpage 134

(d) DEVELOP Standards FOR REVIEWING Probable OPTIONS FOR JUST A STRATEFY PLAN.

For the organizational development, Unilever UAE should often go through significant change at various items in their development. Change management requires thoughtful planning and sensitive implementation, and everything the above. Consultation with involvement of men and women influenced by the changes. When the firm power change on people normally problems happen. Change must be practical, possible and measurable. These aspects are especially relevant to controlling personal change. Besides that pursuing dissemination processes may also be beneficial to gain determination;

Alignment - employees should be urged to recognise, admit and buy in to the organisation's eyesight and strategy

Equity - employees should be made to feel a feeling of equality in the manner they are treated, recognised and rewarded

Integrity - the organisation should be seen to be reasonable and respect people, no matter status

Consensus - management should seek to develop relationships based on shared understanding and support

Achievement - folks are motivated by take great pride in and satisfaction in the quality and performance of the work. Achievements should therefore be recognized and rewarded

Rationality - a organized approach to problem fixing and communication in the company encourages an environment where people are genuine, consistent and open up, which creates higher trust and therefore engagement

Development - individuals should be made to feel they operate in an environment which permits them to learn and grow

Teamwork - team heart and co-operation promotes professionals to get the best performance from each group member

Belonging - professionals should aim to be role models who take pleasure in what they and their co-workers achieve along.

Ref; Adam R. Morris, New Authority, 1957, 16 page

Ref; Ricky W. Griffin, Taking care of people and organizations, 2009, webpage 243-244

TASK 3

(A) COMPARE ETHICAL, CULTURAL, ENVIRONMENTAL, SOCIAL AND BUSINESS WITH THE CURRENT BUSINESS OBJECTIVES OF YOUR ORGANIZAITON.

ETHICAL History OF UILEVER UAE;

The Unilever UAE comprises several departmental items. Their ethics part is vital. Regarding Unilever UAE company, they must follow ethics for both individuals and community. As a production firm it will follow communal responsibility. Where, it will ensure that they don't really make damaging process preserving against environment. Even it offers environment effecting wastages or garbage it will recycle or dispose without unsafe. They operate several units. They bring changes in the organization. But change get there, they may have responsibility to job secure of employees. Also there are stresses in general management level. Key aspect of pressure is dissatisfaction of clients. It could cause to lessen revenue and higher cost for the firm. Even if indeed they face increased cost they must follow customer loyalty and pay tax to government properly. Those are key roles in moral qualifications of Unilever. There customer dissatisfaction has been increasing using its product/ service. To be a business organization it should meet its clients' needs.

Cultural record of Unilever

The Unilever has a culture which is participative management style in the business. But each unit has general supervisor. Their management composition doesn't follow functional structure. Here a professional team working going on. Still they found poor personnel morale. In order to find solution, they need to identify the reason why for poor personnel morale.

Environmental background;

Organizational environment consist of all factors that in one way or another are afflicted by the organizational decision.

Unilever Organizational environment identifies the pushes that can make an impact. Forces constructed opportunities and threats. Organizations dose not are present in isolation. It works with the entire environment. These can be split into two main parts as, Internal Environment and Alternative Environment

Internal Environment

Organizations internal environment refers to the elements within the business. Internally, a business may very well be a resource transformation machine that needs inputs (labour, money, materials and equipment) from the exterior environment (i. e. , the outside world), converts them into useful products, goods, and services, and makes them open to customers as outputs.

Management- A supervisor is someone skilled in knowing how to analyze and enhance the ability of an organization to make it through and increase in a complicated and varying world. Which means that managers have a set of tools that enable them to grasp the complexness of the organization's environment. A management system details the organization and the set of significant interacting corporations and forces in the organization's organic and rapidly changing environment that influence its capability to serve its customers. The company must continuously monitor and adjust to the environment if it is to make it through and prosper. Disturbances in the surroundings may spell deep threats or new opportunities for the firm. The successful company will identify, appraise, and respond to the many opportunities and threats in its environment.

Share holders-they are the owners of an organization. A shareholder or stockholder is an individual or company (including a firm) that officially owns a number of stocks of stock in a joint stock company. A company's shareholders collectively own that company they invests there recourses to a business in order to secure a profit.

External Environment

It involves all the exterior institutions and pushes that have a genuine or potential interest or impact on the organization's potential to achieve its goals

Competitive

Technological

Political

Legal

Social track record:

Here they presenting computer technology for minimise the costs for production. Alternatively they intend to redundancy the employees' amount. Where, it causes to poor staff morale with the change of technology and minimum job secure to employees.

Business history;

As a small business corporation, the Unilever UAE should identify the client needs and wishes before source its products. If indeed they achieved it well the customer will meet and maintain with them. But here the customer dissatisfaction has been increased in cases like this. So they want greater strategy to satisfy the customer.

Ref; Karen Sobel Lojeski, Uniting the Virtual Labor force, 2008, webpage 179-181

(B) DEVELOP APPROPRIATE Eye-sight AND MISSION Assertions FOR A BUSINESS.

A vision declaration gives a wide-ranging, aspiration image of the future that an firm is looking to achieve. Vision assertion is more about the organizational worth rather than bottom line methods. Whereas a objective statement is a short summary of a couple of sentences that delivers a bird attention view of the organizational track record and reason for existence.

To create a vision and quest assertion of the Unilever UAE to begin with I investigated into the idea that will make Unilever stand out from its competitors, i quickly indentified the key measures of the success, mixed these ideas and procedures into a tangible and measurable goal and last of all refined the words until the concise and correct assertions were made including all the components of its explanation.

Ref; Karen Sobel Lojeski, Uniting the Virtual Labor force, 2008, webpage 179

UNILEVER'S VISION Assertion;

''Validity reaches the center of everything we do. It's in our brands, our people and our method of business''.

UNILEVER'S MISSION Declaration;

''Unilever's products touch the lives of over 2 billion people each day whether that's through sense great because they have got shiny hair and a brilliant giggle, keeping their homes fresh and clean, or by enjoying a great glass of tea, gratifying meal or healthy snack''.

(C) PRODUCE AGREED FUTURE MANAGEMENT Goals FOR A BUSINESS.

Objectives are those vacation spots which finally satisfies corporate needs. Different organizations have different targets, before starting any business, its targets are described. Though like many other profit making companies, Unilever UAE's ultimate objective is earnings maximization. Aside from earnings maximization, business may have many other objectives. Before defining objectives, the proper management must ensure that objectives are not nearly impossible and mutually agreed upon. The objectives which are centered on results consistent, specific, measurable, related to time and attainable are usually mutually agreed upon. To attain such goals different collections of management strategies are implemented. It really is less or even more true that aims of management strategy are same as that of the organization as a whole. Following is a brief summary of aims by Unilever UAE;

Understand customers, competition and industry, and meet specific customer requirements.

Improve product / service / route / customer congruency.

Grow the company by reaching new marketplaces through new channel partners.

Develop company principles and culture.

Hire the best people.

Some management strategies might succeed better than others. This will depend after the three key success standards that can be used to judge the viability of strategic options. These three key elements of analyzing the strategic options are suitability, acceptability and feasibility.

Suitability; is concerned with whether a strategy/goals address the main element issues that have been identified in understanding the strategic position of the business. In particular this requires an assessment of the extent to which any strategic option would wit with key drivers and expected changes in the surroundings, exploit strategic capacities and become appropriate in the framework of stakeholder anticipations and influence. You will find volume of tools that can be used to gain access to the suitability of proper options, I-e: TOWS matrix, relative suitability of options that counts, ranking tactical options, decision tree and cases etc.

Acceptability; It really is concerned with the expected performance effects of a technique. These can be of three types; dividends, risk and stake holders reactions. Earnings are the benefits which stake holders are expected to receive from the strategy which might be computed by financial evaluation and cost gain examination etc. Risk can be seen similarly by conducting sensitivity analysis, financial ratios, share holders value examination and reactions etc.

Feasibility; this is concerned with whether an organization gets the resources and competence to deliver a strategy. A number of approaches may be used to understand feasibility; I-e: financial feasibility, learning resource deployment etc.

Ref: Thomas L. Quick, Successful team development, 1992, web page 63

TASK 4

(A) EXPLAIN THE NEED FOR EXTERNAL FACTORS Impacting on A BUSINESS.

In examining the macro-environment, it's important to identify the factors that might in turn have an impact on a number of vital variables that are likely to affect the organization's resource and demand levels and its own costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes happening in culture create an uncertain environment and have a direct effect on the function of the complete organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible conditions that might affect a business. A PEST analysis is one of them that is merely a construction that categorizes environmental affects as political, monetary, social and scientific forces. Sometimes two additional factors, environmental and legal, will be put into make a PESTEL examination, but these styles may easily be subsumed in others. The research examines the impact of every of the factors (and their interplay with each other) on the business. The results can then be utilized to take advantage of opportunities and to make contingency programs for threats while preparing business and strategic ideas (Byars, 1991; Cooper, 2000).

(B) ANALYSE THE MAJOR CHANGES TAKING PLACE IN THE Exterior ENVIRONMENT WHICH WILL Have an impact on STRATEGY.

World is apparently integrating economically, politically and culturally. Regardless of the national limitations huge trends in information, communication and technology has occurred. Ownership patters of corporate and business sector all over the world have become more technical like joint ventures, cross-border acquisitions etc. Global strategies have emerged in the development of goods and services, circulation and management of labour. These experienced an immense effect on business activities. The earth economy is now more strongly interlinked and the finance has become a global resource.

In the current economical circumstances organizations are facing large external forces that ultimately make change inescapable. External causes such as new work force demographics; changing targets about quality, output, and client satisfaction; and new systems are dramatically impacting the operating environment in organizations earth sensible. Internally, financial limits, the problem to do more with less, cross-functional groups, mergers and acquisitions and empowered employees all affects organizations' position to contend in the global industry.

(C) REVIEW POSITION OF A BUSINESS IN ITS CURRENT MARKET;

Unilever has gross annual sales of practically 2. 4 billion, the UAE is the next greatest country in Unilever after US.

Employ 179 000 people in 100 countries worldwide.

Invest 1 billion each year on research and development.

In 2005 spent over 78 million on a wide range of community projects

Over half our worldwide sales are produced by our Foods brands, such as Knorr, Flora, Hellmann's, Lipton, Slim·Fast, Bertolli and Walls.

Unilever UAE Foods has total annual sales of almost Ј900 million and utilizes 2 000 people at 11 locations across the UAE.

Unilever has 400 brands internationally. In the UAE we've over 35 brands covering foods, home and personal care.

In Ireland, we contain the no. 1 or no. 2 position inside our nine leading categories (snow cream, tea, savoury, spreads, dressings, laundry, household cleaning, deodorants and epidermis cleansing).

Every day, 150 million people choose our brands to nourish their families and clean themselves and their homes.

35 million mugs of PG tips are drunk every day - enough to fill up six Olympic-sized pools.

77% of most English mustard bought in the UK is Colman's.

Over a million tubs of Flora are made every day.

Launched in 1909, Persil is the UK's leading and longest set up washing Natural powder.

One billion Wall's snow creams are consumed every year.

TASK 5

(A) MEASURE THE COMPETITIVE Talents AND WEAKNESSES OF AN ORGANIZATIONS CURRENT BUSINESS STRATEGY.

STRENGTHS OF UNILEVER UAE:

The size of the company in accordance with others in the industry

Balance Sheet strength

Cash flows

Perception of the business's products

Perception of the company's brands

Advantages of economies of scales that company has over its competitors

WEAKNESS OF UNILEVER UAE:

Poor management.

High labour turnover.

Lack of conformity with the regional legislation.

Health & security issues at Dubai development plan.

Centralized recruitment process for management that lacks regional understanding.

(b) Build AN AGREED STRATEGY PLAN THAT INCLUDES RESOURCES IMPLICATION.

Management strategy is a organized evaluation of the factors from the external and inside environment to provide the basis for rethinking the existing management procedures. Its target is to achieve better positioning of corporate plans and tactical priorities. In case of the Unilever UAE the main element important factors of the proposed mutually arranged strategies are the followings along with their source of information implications;

There must be a workflow process in order to accomplish results in the form of a product or service.

There must be an Authority Process in order to direct behaviour in the pursuits of the organization and its individuals.

There must be a Reward and Penalty Process to generate people to behave in a way required by the interests of the organization and its participants and to behave in a way making associated activity possible.

There must be considered a Perpetuation Process to maintain, replenish, and make enough the quantity and quality of public and natural resources utilized by the organization and its participants.

There must be an Recognition Process to build up a concept of the wholeness, uniqueness and need for the organization. Normally, this is accompanied by initiatives to choose and define plainly understood emotionally well developed symbols, concepts, or other such factors which will help individual individuals identify the uniqueness of the organization as a whole, which automatically really helps to specify the uniqueness of the organization in the larger environment where it is inlayed.

There must be a communication process to provide for the exchange of information, ideas, feelings and beliefs etc employed in all activities.

There must be an evaluation process which establishes requirements for and defines degrees of tool and value for people, materials, ideas, and activities and which rates them and allocates these to these levels.

The key the different parts of a complete Strategic Plan include analyses or discussions of following source of information implication

Human and other Capacity Requirements - The human being capacity and skills necessary to put into action the strategy, current and potential sources of these resources. Also, other capacity needs required such as inner systems, management structures, engaged lovers and Network NOs and POs, and a supportive legal construction etc.

Financial Requirements - The financing required applying the suggested management strategy, current and potential resources of these money, and the most critical resource and financing gaps.

Risk Evaluation and Mitigation Strategy - What dangers exist and how they could be addressed.

Estimate of Task Life expectancy, Sustainability, and Exit Strategy - How much time the strategy will stand executed, after how long and why strategy will demand modifications (if feasible to take action), and exactly how it'll ensure sustainability of the corporate objective achievements.

Management Strategic Plan' may only be looked at complete when these components have been identified, at least in wide terms. As the project moves into Execution, a number of these components are then described in greater detail and tested in reality.

Ref; Harriet Hankin, The new workforce, 2005, site 111-113

(C) develop measures for assessing the strategy plan.

Kindly refer Task 5-E, where monitoring and analysis process has been discussed in detail.

(D) create a schedule for implementing a stratefy plan in an organization.

Following is enough time table for the proper planning execution for the Unilever UAE stating the starting and concluding date;

No.

ACTION

START

FINISH

1

Development of Advice and Expert Forma for Impact Analysis Initial Screening process for the proper change.

1November 2010

7 December 2010

2

Verbal are accountable to table of directors to format the proposals for the way forward also to obtain their views regarding the suggested strategy.

8 Dec 2010

8 Dec 2010

3

Update and quick on the agreed proposals

5 January 2011

5 January 2011

4

Briefing Periods for Minds of Service and local Managers.

14 January 2011

14 January 2011

5

Carry out putting into action the agreed strategy and prioritisation for all corporate and task specific functions, policies and methods.

17 January 2011

4 Apr 2011

6

Reviewing and benchmarking the required and actual status of strategy execution.

5 Apr 2011

13 April 2011

7

Completion of strategy implementation.

30 April 2011

30 April 2011

8

Consultation

1 May 2011

3 May 2011

9

Monitor & Review

3 May 2011

31 March 2012

10

Annual Review

1 April 2012

15 Apr 2012

(E) design MONITORING AND Analysis SYSTEMS FOR THE IMPLEMENTATION OF ANY STRATEFY PLAN IN AN ORGANIZATION;

Monitoring and evaluating the look activities and status of implementation of the plan is -- for most organizations -- as important as determining tactical issues and goals. One advantage of monitoring and evaluation is to ensure that the business is following the direction proven during strategic planning. I would like to suggest Henry Mintzberg's 'six basic monitoring & evaluation mechanisms' for Unilever UAE. According to the model the monitoring and analysis of any proper plan can be conducted by following the six formal basis steps that finally makes certain that goals are being focused and it comes with an ability to recognize any deviation from the desired outcome. Evaluation may be accomplished by standardization in place, automatically, by virtue of benchmarks that predetermine what people do therefore ensure that their work is coordinated.

DIRECT SUPERVISION; immediate supervision in which one individual coordinates by giving purchases to others, will come into play after having a certain number of people must work together. Thus, fifteen people in a warfare canoe cannot coordinate by common adjustment; they desire a leader who, by virtue of instructions, coordinates their work, much as a basketball team requires a quarterback to call the plays

STANDARDIZATION OF WORK PROCESS; this means the specs that is, the programming of the content of the task directly, the strategies to be implemented, as regarding the assemblage instructions that come with many children toys and games.

STANDARDIZATION OF OUTPUTS; this means not of what is to be achieved but of its results. By doing so, the interfaces between careers is predetermined, as whenever a machinist is informed to drill slots in a certain put on a fender in order that they will fit the bolts being welded by someone else, or a department manager is informed to attain a sales growth of 10% so the firm can meet some overall sales focus on. Again, such standards generally emanate from the experts.

STANDARDIZATION OF SKILLS; as well as knowledge, is another, though looser way to attain coordination. Here, it's the worker as opposed to the work or the outputs that is standardized. They're educated a body of knowledge and a set of skills that are subsequently applied to the task. Such standardization typically takes place outside the company for example, in a specialist school of school before the worker takes his or her first job. In erect, the criteria do not result from the analyst; they are simply internalized by the operator as inputs to the job he or she calls for. Coordination is then attained by virtue of various operations having discovered what to expect of every other. When an anesthetist and a cosmetic surgeon meet in the operating room to remove an appendix, they need hardly connect; each knows exactly what the other will do and can coordinate accordingly.

STANDARDIZATION OF NORMS; means that the staff share a common set of beliefs and can perform coordination based on it. For instance, if every person in a spiritual order shares a opinion in the value of attracting turns, then all will work together to do this aim.

MUTUAL ADJUSTMENT; it achieves coordination of work by the easy process of casual communication. Individuals who do the task interact with each other to coordinate, much as two canoeists in the rapids change to 1 another's actions. Shared adjustment is actually used in the simplest of organizations. It's the most evident way to organize. But paradoxically, it is also found in the most sophisticated, since it is the only real means that can be relied upon under extremely difficult circumstances, such as trying to figure out how to put a man on the moon for the first time.

Ref; Michael Armstrong, Strategic Leaders, 2002, web page 123-126

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