In the business world where every dollar counts, the fight to maintain productivity and efficiency is essential for the success of any business. Tools such as planning and decision making are the fundamentals to any business. For a business to have a plan means that the company’s goals and objectives are clearly stated, thus setting up an overall approach to attain such goals and objectives. The decision making process is a series of steps that are followed to overcome a certain problem.
To gain competitive advantage, precise planning is required. Establishing a goal that is as specific as possible enables a business to prosper. Planning can be broken down into two terminologies. They are formal planning and informal planning. Formal planning is when the business’s objectives are written down, allowing for any member to examine it. Informal planning is when very little is written down often leading to discontinuity. This means that the goals are only known to a number of people and is usually used in smaller businesses.
Outside forces such as technology, society, economy, and legal changes can affect business planning. To maintain stability, a business manager needs to know how to face these changes to avoid failure. Therefore effectiveness in planning is essential. There are different types of plans that can be used to deal with the dynamic environment. They are strategic, tactical, specific, directional, single use, and standing. These types of planning are used depending on the business and the goal. They each have different time frames and focuses. The use of SWOT analysis can make it easier to figure out what type of pl ...