EFFECT OF CORPORATE PLANNING IN AN ORGANISATION

EFFECT OF CORPORATE PLANNING IN AN ORGANISATION

The value of corporate planning to a given organization depends on its objectives, needs and circumstances, corporate planning has sufficient value so that whatever situation on an organization, it is always beneficial.

One of the effect of corporate planning process is that it enable management to make rational. When corporate planning process is followed, manager is presented with alternatives to choose from projects that have undergone through analysis reflecting available fact. This minimizes the use of emotional intuition and guess work.

Corporate planning enables the management to define relationship within the organization. This definition alone constitutes one of the major benefits of corporate planning process definition who is responsible for each organization function, this is to ensure that each functional areas in the organization has some one saddled with the responsibility in addition, management can determine whether each functions is properly placed and whether the responsibility of an individual has the authority to execute the requires action.

A good corporate planning allows all level of management to participate and build confidence in an organization, for its gives a long term perspective, it shows that management has a direction that decision making, is under control.

Corporate planning increase profit of an organization because it enables the organization to know what do produced when to produce and where to produce; it has target market there is a need to produce in large quantity.