Organizations that fail to plan are planning to fail
Organizations that fail to plan are planning to fail
Currently, the numerous organizations pour huge sums of capitals into competitive market in order to get a larger market share and seek more financial profits. Some of them are success, while others are eliminated with a huge financial loss by the fierce competition. However, the main reason why those companies failed is nothing but not having an all-round strategic planning. This essay will discuss that a company with an all-round planning in terms of external and internal environment of the business will help businesses achieve company’s objectives and survive from the intensive competition of the capital market. Planning for internal environment mainly based on company’s weakness and strength can increase the working efficiency and coordination for the purpose of reducing in the operation cost associated with production mistakes, while planning for the external in terms of company’s threats and opportunities can help the business effectively analyze local market and expand company in order to gain more financial benefits.
It is undeniable that a formal planning for a company makes contributions to achieving organization’s objective under the assumption of unchanged and predictable environment (Robbins et al. 2012 p.87). However, it is commonly believed that the capital market is changeable and unpredictable (Kumar 2011, p.18). As a result, a well-constructed plan might not be able to fit in every circumstance of business. Some negative discussions on a formal planning have been issued recently (Robbins 2012, p.87). Firstly, a formal planning may create some rigidity to the working environment that makes management lack flexibility and selectivity, which leads managers to be simply tied on a specific course of action (Robbins 2012, p.87). Secondly, a formal planning may restrict staff’s creativity and intuition. As a company needs someone’s creativity and innovation to be improved, the result of formal
Currently, the numerous organizations pour huge sums of capitals into competitive market in order to get a larger market share and seek more financial profits. Some of them are success, while others are eliminated with a huge financial loss by the fierce competition. However, the main reason why those companies failed is nothing but not having an all-round strategic planning. This essay will discuss that a company with an all-round planning in terms of external and internal environment of the business will help businesses achieve company’s objectives and survive from the intensive competition of the capital market. Planning for internal environment mainly based on company’s weakness and strength can increase the working efficiency and coordination for the purpose of reducing in the operation cost associated with production mistakes, while planning for the external in terms of company’s threats and opportunities can help the business effectively analyze local market and expand company in order to gain more financial benefits.
It is undeniable that a formal planning for a company makes contributions to achieving organization’s objective under the assumption of unchanged and predictable environment (Robbins et al. 2012 p.87). However, it is commonly believed that the capital market is changeable and unpredictable (Kumar 2011, p.18). As a result, a well-constructed plan might not be able to fit in every circumstance of business. Some negative discussions on a formal planning have been issued recently (Robbins 2012, p.87). Firstly, a formal planning may create some rigidity to the working environment that makes management lack flexibility and selectivity, which leads managers to be simply tied on a specific course of action (Robbins 2012, p.87). Secondly, a formal planning may restrict staff’s creativity and intuition. As a company needs someone’s creativity and innovation to be improved, the result of formal