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PLANNING What do you question whwter your business can survive?

Pal originally developed the personal digital assistant (PDA) as a handheld Schedule. As we said earlier, PDAs became populas in the 1990s as a convenient way for business people to keep their calendars and business contacts at their fingetips. After a few years, several managers left Palm to form a competing PDA manufacturer, Visor. Both were succesful for a period of time. As business declined for both, they merged into one company to be more efficient in producing and selling PDAs. Neverthesless, the combined company, PalmOne, is still struggling, whit declining sales. Managers at PalmOne ans stocks anlysts are questioning why. Part of the problem comes from the environment off this technological industry. As described in prior chapters, a number of factors in the environment, such as competitors and changes in technology, impact bunisses. In terms of technology, latop computers have become smaller and lighter, can do more than PDAs, and are approaching them in size. Another product, the cell phone, has evolved so that it is also competing whit PDAs. Cell phones are becoming “smarter” and more versatile; they can be used top lay games, send messages, and take pictures, performing some of the functions of computers and more. The Marketplace in which PDAs compete is becoming more competitive, thus cotting into the market for PalmeOne products.

PalmOne is now wondering what business they should be in what direction they should head in the future. Such a fundamental question as “Should we continue making PDAs?” may be under consideration. In short, planning is a major issue for them.

Planning Terms Plannig is defined as specifying specifying organizational results, or outcomes, as well as identifying the means for achieving those results. Goals are statements of desired results. Objetives are specific statements of intended outcomes. While goals and objectives specify outcomes, plans specify the means, or activities, that are chosen to reach them. A 6% increase in sales for the coming year is a example of a goal. Developing improved marketing communication meterials is part of the plan, or means, to increase sales by 6%. Panning is the frist of the four fuctions of management because organizations need to have a sense of where they are going before they set up other business operations. It is the starting point. Planning provides sevral benefits. Ones is that it provides a sense of direction, or focus, for managers and employees. With so many things to do, priorities are needed. Planning also helps to unify efforts, encouraging members to “pull in the same direction”. Planning further helps to define the organization for stakeholders outside of the company, such as customer and investors. Planning requires managers to think ahead and anticípate the future. Thus planning can help in reacting to unexpected events by providing guidance to managers. For example, a disaster plan specifies steps and actions to follow if a disaster occurs. It enables an organization to respond more quickly and effectively to these eventas.

achieving better organization as well. Knowing the plan. Leading . the second functio of organizing specifies how work and workers are arranged in order to execute the plans. emploees coordinate efforts and work together.Planning is also important because the other functions of management emerger from it.1. as depicted in Figure 6.