The problems facing corporate planning

The problems facing corporate planning

Corporate planning is been faced with the following problems discussed below;

Shortage of raw material: this one of the major problem been encountered by most of the production organization in our environment, the question of what to produce arises when the production organization are trying to set out a good strategic planning on how to win the taste of the consumer and at the same times how the organization to be able to evaluate resources at hand as well as the people within the environment.

The problem of what to do a particular time such as what to produce often occur on the basis of the availability of raw material because in a situation that the production department starts to experience shortage of raw material on their process , it can easily lead to expenditure and can even stop whole activities of the organization.

High cost of implementation: capital means the amount of money set aside to start up a production process or to carryout all that have been planned. Most organization through friends, banks or from financial institution due to the lowers cost are not best suit the implementation of corporate plans, planning and control over such funds.

Social, Cultural Norms and values: Generally, life style of the society often have great effects in corporate planning of an organization in corporate planning of an organization. The mode of living for example, a brewery industry producing alcohol drinks may likely not attract customers in the northern part of the country because of their social cultural background and mostly that it goes against their religion (Islam). As a result of this belief of people, corporate planning cannot carryout easily because when a company fails to recognize such area before her corporate plans. In view of this most organization finds it difficult to plan wide as result of this problem.

Undecided policies of the organization: another problem that may face corporate planning in organization is that manager’s fails clearly spell out the policies to embark on, during decision making process. Their essence is defined discretion making in an area where discretion that is they give structures and direction to.

Today, most of the organization in Nigeria that make use of foreign technologies are making losses as greater proportion of the profit earned goes on the other of the technology and equipment. Hence, if Nigeria is to improve their corporate planning so as to have good output, manager should start operation new and simply tools to help them with the work of planning and execution.