Business Planning In Business

1033 Words3 Pages

Planning is the effect of outlining organisational objectives or aims, as well as a system of how to achieve them; therefore failing is to be unsuccessful in achieving those goals and objectives. The importance of planning in businesses is great as a formal plan incorporates the organisations aims and objectives, determines strategies for accomplishing those goals, and develops a system to coordinate behaviours of workers efficiently so as to increase overall chance of success. Without a formal plan in place, organisations may not be entirely certain of what their goals may be and how to achieve them, therefore causing detriment to the company. Organisations definitely need a plan if they wish to proficiently succeed in the business world. To plan is to create an outline of a businesses organisational objectives or aims, as well as how to achieve those aims and should be a framework of what needs to be completed when and how to achieve it, (Robbins, S, Decenzo, D, Coulter, M&Woods, M, 2014). Ensuring that businesses or organisations have a formal business plan is important because a good plan reduces a manager’s uncertainty in change, details how to manage or how to respond to change and reduces inefficient activities thus ensuring confident control and productivity, (Robbins, S, et al., 2014). By formally planning, a manager is limiting the chance of failure, thus without planning you cannot succeed. When there is a succinct plan in place, members of an organisation are all working towards set goals and are able to coordinate their activities to achieve these goals. A lack of planning can lead to an organisation’s members working in opposite directions and this keeps the organisation from reaching its goals (Robbins, S, et al.,... ... middle of paper ... ...ok at their business outcomes and restrict the possibility of innovation within their organisation. It is also thought that formal planning over reinforces the importance of success, which may eventually lead to failure if in an uncertain environment (Robbins, S, et al., 2014). In today’s business world, some managers definitely prefer the concept of storming the castle. This is because it is believed that it creates an easier entrance for entrepreneurs in business due to the uncertainty in business markets today, (Brinckmann , Grichnik, & Kapsa, 2008, p. 38). To conclude, it is clear that failing to plan is undeniably, planning to fail Organisations cause themselves to become susceptible to failure when they fail to plan, as they are leaving themselves open to risks in which they won’t be able to counter, e.g. not having an emergency action plan or risk analysis.

Open Document