It enables a business to make prediction on future (Anyim, Mba and Ekwoaba 2012). Planning decides which organisational goals and action to pursue; strategies to adopt and decide how to allocate organisational resources to achieve those goals. Planning is a three-step activity. The first step is to determine the organisation’s goals. The second step is to formulate strategy and the last step is to implement strategy. SWOT analysis (strength, weakness, opportunity, threat) is applied in developing strategy. The strategies determined during planning determine the effectiveness and efficiency of an organisation (Waddell, Jones and George 2013). A good planning skill results in higher organisational performance while a bad planning skill results in lower organisational performance. Google has planned effectively. The founders of Google set the mission to improve the world and to organize the world's information. Google has listed down ten core principles to guide the entire organization (Google 2015). All of these values are shared within the company. CEO Larry Page also has strong goals to not focus on competition, but on upgrading products and services (Nisen 2013). When Yahoo was created, they had a strategic plan to become a top firm in Internet search engines market. However, they is failed to maintain their goals because they cannot focus on their plan. Yahoo could not make a decision on whether it wanted to be a media company or a technology company (Hof
It enables a business to make prediction on future (Anyim, Mba and Ekwoaba 2012). Planning decides which organisational goals and action to pursue; strategies to adopt and decide how to allocate organisational resources to achieve those goals. Planning is a three-step activity. The first step is to determine the organisation’s goals. The second step is to formulate strategy and the last step is to implement strategy. SWOT analysis (strength, weakness, opportunity, threat) is applied in developing strategy. The strategies determined during planning determine the effectiveness and efficiency of an organisation (Waddell, Jones and George 2013). A good planning skill results in higher organisational performance while a bad planning skill results in lower organisational performance. Google has planned effectively. The founders of Google set the mission to improve the world and to organize the world's information. Google has listed down ten core principles to guide the entire organization (Google 2015). All of these values are shared within the company. CEO Larry Page also has strong goals to not focus on competition, but on upgrading products and services (Nisen 2013). When Yahoo was created, they had a strategic plan to become a top firm in Internet search engines market. However, they is failed to maintain their goals because they cannot focus on their plan. Yahoo could not make a decision on whether it wanted to be a media company or a technology company (Hof