Importance of the business planning process

If you are planning for 20 years, grow trees.

Importance of the business planning process

What is the Importance of Planning in Management?

What is the Importance of Planning in Management?

Importance of planning in management are: Planning is the first and most important function of management. It is needed at every level of management.

importance of the business planning process

In the absence of planning all the business activities of the organisation will become meaningless. The importance of planning has increased all the more in view of the increasing size of organisations and their complexities. Planning has again gained importance because of uncertain and constantly changing business environment.

In the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future. The following facts show the advantages of planning and its importance for a business organisation: Under the process of planning the objectives of the organisation are defined in simple and clear words.

The obvious outcome of this is that all the employees get a direction and all their efforts are focused towards a particular end. In this way, planning has an important role in the attainment of the objectives of the organisation. For example, suppose a company fixes a sales target under the process of planning.

Now all the departments, e. In this way, the attention of all the managers will get focused on the attainment of their objectives.

Cash Management

This will make the achievement of sales target a certainty. Thus, in the absence of objectives an organisation gets disabled and the objectives are laid down under planning. Planning is always done for future and future is uncertain. With the help of planning possible changes in future are anticipated and various activities are planned in the best possible way.

In this way, the risk of future uncertainties can be minimised.

Steps in the Strategic Planning Process

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.

By keeping these facts in mind and planning the future activities, the possible difficulties can be avoided. Under planning, future activities are planned in order to achieve objectives. Consequently, the problems of when, where, what and why are almost decided.

This puts an end to disorder and suspicion. In such a situation coordination is established among different activities and departments. It puts an end to overlapping and wasteful activities. Consequently, wastages moves towards nil, efficiency increases and costs get to the lowest level.

For example, if it is decided that a particular amount of money will be required in a particular month, the finance manager will arrange for it in time. In the absence of this information, the amount of money can be more or less than the requirement in that particular month.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.

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

Business process reengineering (BPR) is the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce tranceformingnlp.comzations reengineer two key areas of their businesses.

2 Business Continuity Planning What is BCP? At the most basic level, Business Continuity Planning (BCP) can be defined as an iterative process that is designed to identify mission critical business.

Free business planning and marketing tips, samples, examples and tools - how to write a business plan, techniques for writing a marketing strategy, strategic business plans and sales plans.

Jun 27,  · Planning helps an organization chart a course for the achievement of its goals. The process begins with reviewing the current operations of the .

The Importance of Business Planning |