SELF REVIEW (WEEK 2)

What happen when managers do not plan in business organization?

When managers do not plan in business organization, it can lead to bad management. Bad
management can impact employees and a company's overall operations. Other than that, a
lack of planning may cause you to hire new employees every time you see a need in a
department. If you do not balance these needs with the consideration of what you can afford,
your payroll expenses can zoom out of control. In short, you must plan for enough growth to
justify increased payroll and make sure that plan includes a cost-effectiveness evaluation for
each position. This will tell you if new employees' efforts are paying off in increased
profitability.

Besides, Marketing can seem like a vague enterprise. You may feel that you are aimlessly
searching for customers and waiting to see who buys before you target a particular market
segment. In fact, you can do research and identify potential target markets. You could also
allocate marketing funds for each target group and measure the results of your expenditures.
If you fail to make a marketing plan, you may waste a lot of money with the hit-or-miss
approach of advertising to the marketplace in general.

Moreover, It's easy to imagine that each new project you finance will pay for itself by making
enough money to service the debt and leave a profit. In reality, some projects fail. If you
continue to finance projects as you think of them without a debt plan, you may over-borrow.
Part of your financial planning should include monitoring the percentage of debt you carry in
relation to your income. Without such a plan, you could quickly end up owing more than you
make.

Lastly, part of your growth depends on introducing new products or services to the market. It
takes time to develop these. You need to do test marketing, try out different features, examine
financing needs and look at how a new product fits into your overall offerings. If you don't
have a product-development plan, you may waste money pursuing products that have no
chance of succeeding, adding more products than you can afford to finance or introducing
products that conflict with your brand,
 References

Smallbusiness.chron.com. (2019). The Effects of Lack of Planning in an Organization.

[online] Available at: https://smallbusiness.chron.com/effects-lack-planning-organization-
64371.html [Accessed 29 Jan. 2019].