{"id":75,"date":"2017-07-26T18:13:15","date_gmt":"2017-07-26T18:13:15","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-principlesofmanagement\/?post_type=chapter&p=75"},"modified":"2019-01-25T21:31:00","modified_gmt":"2019-01-25T21:31:00","slug":"why-it-matters-planning-and-mission","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wmopen-principlesofmanagement\/chapter\/why-it-matters-planning-and-mission\/","title":{"raw":"Why It Matters: Planning and Mission","rendered":"Why It Matters: Planning and Mission"},"content":{"raw":"

Why does a business need to define its mission and engage in planning?<\/h2>\r\nDani Alvarez is a management consultant with the firm Business Advisors. She\u2019s sitting in his office one day when the telephone rings. She picks it up and hears the voice of Tom Wilson, an old high school friend. \u201cHi Dani. This is Tom Wilson from Southside High. Remember me?\u201d They discuss old times for a few minutes, and then Tom gets down to business.\r\n\r\n\u201cDani, I need your help. I started a business several years ago, and we\u2019re in trouble.\u201d\r\n\r\n[caption id=\"attachment_604\" align=\"alignright\" width=\"352\"]\"A Defining the organization\u2019s mission and creating a plan to achieve it is the roadmap to success.[\/caption]\r\n\r\nDani quickly searches her memory and recalls that Tom started a business called Sun City Boards several years ago selling high-end surfboards on the West Coast. Last Dani had heard, the business was doing well. \u201cYeah Tom. I remember when you started your shop, but I thought the business was growing successfully.\u201d\r\n\r\nTom replies, \u201cWe did well the first couple of years, but things haven\u2019t been good for a while now. We\u2019re losing money, and I\u2019m not sure how much longer I can keep the doors open.\u201d\r\n\r\nDani assures Tom that she is happy to help and asks him to send a few items over to prepare for a trip to visit his operations. \u201cJust send me a copy of your current business plan, financial forecasts, and annual operating budget.\u201d\r\n\r\nThere's a pause on the other end of the line, and then Tom says, \u201cWell, I can send you our bank statements and invoices. We don\u2019t have any of the other documents you\u2019re asking about.\u201d\r\n\r\nBased on that response, Dani already has a good idea of the organization\u2019s problem: an obvious lack of planning that never bodes well for a business.\r\n\r\nIn this module, you\u2019re going to learn about the importance of an organization establishing a clear vision and mission and how they guide the business planning cycle. The business plan is the roadmap that guides the organization to success.","rendered":"

Why does a business need to define its mission and engage in planning?<\/h2>\n

Dani Alvarez is a management consultant with the firm Business Advisors. She\u2019s sitting in his office one day when the telephone rings. She picks it up and hears the voice of Tom Wilson, an old high school friend. \u201cHi Dani. This is Tom Wilson from Southside High. Remember me?\u201d They discuss old times for a few minutes, and then Tom gets down to business.<\/p>\n

\u201cDani, I need your help. I started a business several years ago, and we\u2019re in trouble.\u201d<\/p>\n

\"A<\/p>\n

Defining the organization\u2019s mission and creating a plan to achieve it is the roadmap to success.<\/p>\n<\/div>\n

Dani quickly searches her memory and recalls that Tom started a business called Sun City Boards several years ago selling high-end surfboards on the West Coast. Last Dani had heard, the business was doing well. \u201cYeah Tom. I remember when you started your shop, but I thought the business was growing successfully.\u201d<\/p>\n

Tom replies, \u201cWe did well the first couple of years, but things haven\u2019t been good for a while now. We\u2019re losing money, and I\u2019m not sure how much longer I can keep the doors open.\u201d<\/p>\n

Dani assures Tom that she is happy to help and asks him to send a few items over to prepare for a trip to visit his operations. \u201cJust send me a copy of your current business plan, financial forecasts, and annual operating budget.\u201d<\/p>\n

There’s a pause on the other end of the line, and then Tom says, \u201cWell, I can send you our bank statements and invoices. We don\u2019t have any of the other documents you\u2019re asking about.\u201d<\/p>\n

Based on that response, Dani already has a good idea of the organization\u2019s problem: an obvious lack of planning that never bodes well for a business.<\/p>\n

In this module, you\u2019re going to learn about the importance of an organization establishing a clear vision and mission and how they guide the business planning cycle. The business plan is the roadmap that guides the organization to success.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>