The Importance of Planning
Planning helps an organization chart a course for the achievement of its goals. The process begins with reviewing the current operations of the organization and identifying what needs to be improved operationally in the upcoming year. Planning can be divided into the following categories: strategic, tactical, operational, and contingency, with each step including more specific information than the last. (Contemporary Business page chapter 7 page 225, paragraph one)
The far-reaching level of planning is strategic planning- the process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives. (Contemporary Business chapter 7 page 225, paragraph two.) Also strategic planning is a disciplined effort that produces fundamental decisions and actions that shape and guide what an ...view middle of the document...
Operational Planning creates the detailed standards that guide implementation of tactical plans. Also operational planning deals with developing and implementing tactics in specific functional areas. (Contemporary Business chapter 7 page 225, paragraph 4) Also it’s a subset of strategic work planning. It describes short-term ways of achieving milestones and explains how, or what portion of, a strategic plan. For example, the TV advertising, you need know how you want to plan it all out, what you want to advertise and how you want consumers to come buy your product.
Contingency planning is a systematic approach to identifying what can go wrong in a situation. Rather than hoping that everything will turn out OK or that "fate will be on your side", a planner should try to identify contingency events and be prepared with plans, strategies and approaches for avoiding, coping or even exploiting them. (Strategic Management Skills) For example, a restaurant's contingency plan might call for its owner to lay off workers and to stop ordering materials and equipment if it loses its physical location due to a fire. The plan might then call for scouting then leasing a new location and rehiring a reduced amount of staff, only returning to the pre-disaster staff level when business establishes itself in the new location.
In conclusion planning is very important and effective for any business on how they start up their business, run their business and also identifying what can go wrong in a situation. Also planning is important on how you want to expand and make your business better than your competition around you.
Boone, L. E., and D. L. Kurtz. Contemporary business 14th edition 2012 update. 14th. Hoboken: John Wiley & Sons, 2012. Print.
Power, D. J. Strategic management skills. Addison-Wesley, 1986. Print.