1. Benefitsof Planning:Focus,Action,Coordination,Control,andTime Management
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Throughthe planningprocess,companiesmayrealize manybenefits,suchasgreaterorganizational focusandbetter
time management.
KEY POINTS
Planningisamanagementprocess,concernedwithdefininggoalsfora company'sfuture directionanddeterminingthe
missionsandresourcestoachieve those targets.Tomeetthe goals,managersmaydevelopplanssuchasa businessplan
or a marketingplan.
If the organizationanditschief executivehave astrongvisionof where itsfuture lies,thenthere isagoodchance the
organizationwill achieve astrongmarketposition.Thiswill happenbecause itsstrategieswill be consistentandwill be
supportedbystaff at all levels.
Planningtypically offersaunique opportunityforinformation-richandproductively-focuseddiscussionsbetweenthe
variousmanagersinvolved.The plan,andassociateddiscussions,providesanagreedcontextforsubsequent
managementactivities,evenforthose notdescribed inthe planitself.

2. TERMS
 business plan
A summary of how a business owner, manager, or entrepreneur intends to organize an
entrepreneurial endeavor and implement activities necessary and sufficient for the
venture to succeed.
 planning
The act of formulating a course of action, or of drawing up plans.
 time management
The management of time in order to make the most out of it.
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Benefits of Planning
The planning process is concerned with defining the goals for a company's future direction
and determining the missions and resources to achieve those targets. If the organization
and its chief executive have a strong vision of where the company's future lies, then there
is a good chance the organization will achieve a strong position in those markets.
Companies that perform well plan and executestrategies that are consistent and supported
by its staff at all levels. To meet business goals, managers develop business plans to not
only reach targets but to also strengthen and change public perception of its brand.
Business Plans
Business plans are decision-making tools. There is no fixed content structure for business
plans. Rather, the content and format of the business plan is determined by the company's
goals and its audience. A business plan represents and summarizes all aspects of business
planning, from vision and strategy, to marketing, finance, operations, legal, and human
resources.
Integrated Business Plan
Example of an integrated business plan.
Marketing Plans
Strategic management seeks to coordinate and integrate the activities of the various
functional areas of a business in order to achieve long-term organizational objectives. A
formal, written marketing plan is essential, as it provides an unambiguous reference point
for activities throughout the planning period. In a sales-oriented organization, the
marketing planning function designsincentive pay plans to not only motivate and reward
frontline staff fairly but also to align marketing activities with the corporate mission.

3. Example of a Marketing Plan
Example of a marketing plan.
Advantages
By providing defined goals through the planning process, managers and employees are
able to focus and control efforts of their resources, follow determined plans of action,
coordinate activities between divisions, and directtime management to meet specific goals.
Planning helps to achieve these goals or targets by efficiently and effectively using
available time and resources.
The concept of planning helps to answer four basic questions:
 Where are we today in terms of our business or strategy planning?
 Where are we going?
 Where do we want to go?
 How are we going to get there?
Scheduling and time management may be used to plan and control the amount of time
allocated to various activities, and to improve productivity and satisfy multiple goals and
targets.
Perhaps the most important benefit of developing business and marketing plans is the
planning process itself. This typically offers a unique opportunity, a forum, for
information-rich and productively-focused discussions between the various managers
involved. The plan, together with the associated discussions, then provides an agreed
context for their subsequent management activities, even for those not described in the
plan itself.
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