Planning

The chapter on planning through various case scenarios and examples emphasizes the need for a business plan and explains how planning as an activity can be vital to the organization. Aligning the execution of a task or series of tasks to the project or business plan to track the status and progress made in any business activity enumerates the benefits of a business plan. Identifying the target, defining the assumptions and conditions, reviewing the constraints formulating strategies, and creating a framework for assessment and feedback are the essential steps in planning that have been discussed in detail in this chapter.

Various definitions of planning by George Terry, Hurley, Massie, Koontz, and Donnell feature in the initial section of the chapter. Planning helps improve organizational efficiency and is always accompanied by implementation. Factors such as money, material, and equipment are controlled fully by the management of any organization whereas semi-controllable measures such as demand for the product incorporate futuristic assumptions; on the other hand non-controllable premises are transnational agreements or government rules and regulations. Considering the above, the chapter discusses the importance and limitations of planning. The chapter, through multiple examples, explains forecasting and benchmarking as important tools for planning and making business decisions. In addition, it lays down the essentials of a good plan right from creating and establishing a network; planning for marketing, advertising, and innovation; and tapping emerging markets.