An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower-priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality-conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below.(Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise)
The features of Planning highlighted in the situation are given below:
a. Planning is pervasive: Planning is required at all levels of Management. It is not only limited to the top-level management, in fact, all the levels equally participate. The top-level management has the responsibility of formulation of the plan and framing the policies for the company. Middle-Level management is responsible for its implementation. The lower level management has to carry the day to day operational planning as done by the supervisor.
b. Planning is futuristic: Planning must be futuristic in nature. The main objective of planning is to be able to meet future events according to the best advantage of the organisation. The plant must be able to foresee and analyze the future. It must be able to help the organisation to deal with future events. The manager must be able to anticipate the problems and cope up with them.
c. Planning is a mental exercise: Planning is an intellectual activity and mental exercise. It focuses on thinking rather than doing. It decides the future course of action. It requires a systematic method of thinking rather than guesswork.