Importance of the business planning process

Under it, a variety of alternatives are discovered and the best alternative is chosen. For instance, the activities of managers in an organization generally involve strategic planning requiring an analysis of the internal organizational environment and the external organizational environment, such that the ability of the managers to address issues identified in the internal organizational environment and issues identified in the external organizational environment depends on the ability of these managers to effectively utilize the strategic planning process and developing appropriate solutions and actions to address such issues.

Consequently, wastages moves towards nil, efficiency increases and costs get to the lowest level. In planning we are always thinking in advance and planning is concerned with future only and future is always uncertain.

For instance, large business organizations like Walmart require support from investors in order for importance of the business planning process companies to continue to grow and develop. If government economic or industrial policies are not framed as expected by manager then also plans may fail.

The monitoring of plan is very important because it helps to verify whether the conditions and predictions assumed in plan are holding true in present situation or not. It is crucial to managers of the organization to make sure that the strategic planning process and the resulting strategic plans are as attractive as possible to the potential investors of the business in order to maximize the accessibility of available financial resources that could be used for the support of the growth and development of a business organization.

By keeping these facts in mind and planning the future activities, the possible difficulties can be avoided. For example, if the plan is to increase in sale by increasing the expenditure on advertisement, then to put it into action, the managers must allot more funds to advertisement department, select better media, hire advertising agency, etc.

Prepare to Plan "Planning to plan" is often the most important single component in effective business planning. So planning always proceeds and remains at no.

This activity requires higher level of intelligence. So, it is a cost-consuming process. Similarly, in staffing the employees are appointed.

What is the Importance of Planning in Management?

Should some branch be opened somewhere else for the existing or old product? As a result, it can be argued that the performance of managers in providing the appropriate solutions for the issues encountered in the organization depend on the specific activities involved in the strategic planning process.

So, it is right to call planning an intellectual process. This leads to Unity of Direction also.

The Importance of Business Planning

The planning process provides the information top management needs to make effective decisions about how to allocate the resources in a way that will enable the organization to reach its objectives. The management team sees areas where competitors may be vulnerable and then crafts marketing strategies to take advantage of these weaknesses.

Thus, it is a happy situation for a company which is born through the medium of planning. The planning function is needed only when different alternatives are available and we have to select most suitable alternative.

The Importance of Planning in an Organization

This kind of rigidity in plan may create difficulty. The context of strategic planning requires consideration for the changes that occur in the market situation in order to optimize the development of the organization.

Planning is a mental exercise: The human resources of the business organization significantly impact his natural ability of the business organization to achieve its goals and objectives.

Types of Business Plans You should structure your business planning with your goals and "audience" as targets. Standing plans are also known as Repeat Use Plans. Small business owners, faced with time constraints, limited personnel and constant competitive challenges, often realize the importance of business planning, but wait "until they have the time" to do it.

For example, in order to fix a sales target a survey can be undertaken to find out the number of new companies likely to enter the market. Planning is a pervasive function which means it is not the task of top level managers only but managers working at different levels perform planning function.

Following predefined plan when circumstances are changed may not bring positive results for organisation. The maximization of the alignment of the characteristics of the strategic planning process to the characteristics of the employees in the organization could help in improving the overall attractiveness of the organization to potential applicants.

Implementing Your Strategic Plan: From Strategy to Business Models and to Tactics.Strategic Planning Process: Importance and Implications. The following analysis of the significance of strategic planning in a business organization considers the overall context of strategic planning in order to establish the connection between strategic planning and the development of the organization, the impacts of strategic planning.

Course Transcript - A business process is a series of tasks performed in sequence intended to deliver a service, a product, or some other organizational goal.

Planning process involves lot of cost because it is an intellectual process and companies need to hire the professional experts to carry on this process. Along with the salary of these experts the company has to spend lot of time.

Planning is one of the most important parts of running a business, no matter whether it is a large multinational corporation trying to plan.

The Elements of a Business Plan: First Steps for New Entrepreneurs into a business plan, you begin the process of creating a successful enterprise. This publication addresses common the venture planning process is whether you should write a formal business plan.

While many things may be occurring. Business Plan - Investopedia.

Importance of the business planning process
Rated 3/5 based on 95 review