Importance of Planning

Entrepreneurship Development

Lesson 10 : Planning and its Importance

Importance of Planning

  1. To tackle increasing complexity in modern business- large number of employees and complex machines – management must be clear about what is to be done, how, where and when it is to be done.
  2. To face increasing competition, proper planning of production and distribution.
  3. To provide for complex technological changes. Proper planning will make it possible to minimize the adverse effects of technological changes.
  4. To ensure against business failure- due to competition, rapid technological changes and unpredictability of consumer tastes and preferences. It may also be caused by rash and unscientific decision making by managers due to lack of proper planning. Planning forces the management to assess each business situation properly, determine alternative sources of action and then select a course of action that is best and most economical.
  5. To meet changing economic and political situations: More awareness among the consumers about various products and their uses. Proper planning will help in winning over new customers and make them buy goods to satisfy their real and imaginative needs. Planning also helps to enable the business concern to meet the several legal requirements imposed by govt. from time to time.
  6. To exercise effective control: on business operations- employees work schedule and work turn out is planned in advance – compare with performance – ascertain factors and fix the responsibilities.

Major product categories and key players


S.No

Product Category

Key Players

1

Beverages & snack foods

Pepsi, Coca cola, Parle

2

Fast food

Mc Donald’s, Pizza Hut, KFC

3

Food ingredients

Con Agro, Continental grains

4

Basic foods

Pilsbury, HLL, ITC, Godrej

5

Seasonings

Best foods, MTR, Swastik

6

Food mixes

Nestle, MTR, ITC, Bambino

7

Retail marketing

Food world, Reliance, More

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Last modified: Friday, 6 April 2012, 10:51 AM