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Essay / Organizations that fail to plan plan to fail
“Organizations that fail to plan plan to fail.” » Critically discuss this statement. Businesses don't plan to fail, they fail to plan. In my opinion, the planning process is an essential part of running any business successfully. So I think the above statement is correct. According to Stephen Chapman, planning is defined as “the process of setting goals and deciding how to achieve them.” It provides a link between the ideas of the business owner and the actual functioning of the business. (2011 p. 396) It is a management and leadership task that is an integral part of running a business, especially in today's rapidly changing environment. The contemporary business environment is dynamic, constantly changing and increasingly competitive. There is potential for success, but even more potential for failure. Businesses are heavily influenced by the changing organizational environment and this intern creates a lot of uncertainty for managers and organizations. Faced with increasing uncertainty in the external environment, it is all the more important that managers engage in continuous planning. (Robbins 2012 p. 32) Businesses must be flexible and evolve according to their external environment. Planning aims to reduce uncertainty. To do this, it requires managers to look to the future, anticipate change, consider the impact of change and develop appropriate responses. (Robbins 2012) Through attempts to monitor conditions in a changing environment, one is able to respond more quickly to new information and circumstances, thereby becoming more flexible. Additionally, having the environment under constant observation allows managers to analyze how the organization will differentiate itself from its competitors, thereby facilitating more changes...... middle of paper ......s/actiontrumpseverything/ 2013/05/19/if-you-want-to-succeed-don’t-spend-too-much-time-planning-a-case-study>. Chapman, S, Devenish, N 2011, Business Studies in Action, 3rd ed., John Wiley & Sons Australia, Milton, Qld. Dorando-Unkle, M 1995, 'Business planning: the key to success', Occupational Therapy in Health Care, vol. 9, no. 3, pp. 121-131. Lange, J., Mollov, A., Pearlmutter, M., Singh, S. and Bygrave, W 2007, 'Formal pre-start-up business plans and post-start-up performance: A study of 116 new ventures', Venture Capital , flight. 27, no. 3, pp. 385-399. Robbins, S, DeCenzo, D, Coulter, M and Woods, M 2014, Management: The Essentials, 2nd ed., Pearson, Frenchs Forest, NSW. Schlesinger, L., Kiefer, C. and Brown, P 2012, Just start, 1st ed., Harvard Business Review Press, Boston. Simerson, B 2011, Strategic Planning, 1st ed., Praeger, Santa Barbara, California.