THE ROLE OF PLANNING AND FORECASTING IN BUSINESS ORGANIZATION

THE ROLE OF PLANNING AND FORECASTING IN BUSINESS ORGANIZATION

(A CASE STUDY OF EASTERN SHOP NIGERIA LIMITED OGUI ENUGU, ENUGU STATE)

 

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ABSTRACT

The role of planning and forecasting in business organization is a topic chosen from the business administration and management field.
The research was conducted mainly to examine the positive and negatives effects of not making good use of planning and forecasting in the business administration of an organization. For effective research on this topic THE ROLE OF PLANNING AND FORECASTING IN BUSINESS ORGANIZATION. Both primary and secondary data were used to elicit information from sample studied, the primary source of data were response form the personal interview which secondary source form textbook on business management and administration and periodicals.
Twenty-five people were interviewed as the sample of the staff and management of EASTERN SHOP NIGERIA LTD.
The data analysis was based on oral interview I had with the staff of Eastern Shop (twenty five) the major finding as follows.

  1. The planning and Forecasting is aids to correct mismanagement in business organization.
  2. And the planning and forecasting gives go ahead over to any individual organization that is going into business to make judicious use of forecasting and planning as a way of success in any business.
  3. Poor Forecasting attitude and inadequate planning
  4. Poor Integration of Forecasting and planning in running of business.

 

                                               TABLE OF CONTENT
CHAPTER ONE
1.1     Introduction
1.2     Background of the Subject Matter
1.3     Problem Associated with the Subject Matter
1.4     The Problem the Study will be concerned with
1.5     The Importance of Study
1.6     Definition of Importance Term

    1. Reference

CHAPTER TWO:         LITERATURE REVIEW
2.1     The Origin of the Subject Matter
2.2     Schools of Thought Within the Subject Area

    1. The schools of Thought Relevant to
    2. The Subject Matter

2.5     Difference Methods of Studying the Problem
2.6     Summary
2.7     Reference

CHAPTER THREE:              CONCLUSION
3.1    Data Presentation
3.2     Analysis of the Data
3.3     Recommendation
3.4     Conclusions
3.5     References

 

 

CHAPTER ONE

1.1     INTRODUCTION
Andreas Faludi states that “Planning and Forecasting is the Queen Mother function of management (organization) and that if planning and forecasting fail what/who will you direct, control, budget, staff, co-ordinate or organize rather than failure and shame”. Again he state of tension resulting from observing unexpected events. (Toulinin,1960).
Planning and Forecasting present efforts to reduce surprise caused by such events by giving practicable accounts of how they come about.”

 

WHAT IS PLANNING AND FORECASTING?
Forecasting is preparing of an organizational future objectives and its current material and personnel inventory, the general or departmental manager makes an estimate of the current material and human resources that will be able to do in the future and how many more human and material resources the organization must hire to meet its goals (Needle 1999:178).
Any business organization without element of forecasting in like driving a car blind- folded and being directed by a man looking out through the back window. Furthermore, forecasting is prediction; it is an effort by enterprises to know what the future holds for it. Henry Fayol speaks of prevalence as the essence of management.

 

According to Fayol “this looking ahead include both assessing the future and making provision for it.
Modern business management has become a complex activity and so there is the need for adequate forecasting, the need for adequate forecasting is apparent from the hey role it plays in planning Koontz et al stated that “as influence in plans of the entire environment outside the enterprises has come to be increasingly recognizes forecasting of the environment has risen in importance”.
The role of forecasting in business organization is so important that it must be adapted by managers. The making of forecasting and their review by manager compel thinking ahead looking to the future and providing for it. Also, the very act of forecasting may disclose areas where necessary control is lacking.

 

PLANNING:
Andreas Faludi state “Man’s understanding of this world and his ability to act in it depends on his constructing an imaginary in his own mind this applies equally well to the planner’s understanding of himself and his appreciation”. Planning in its simplest meaning is the determination of anything in advance of action. Planning is defined by Koontz O. Donneil as, “deciding in advance what to do who is to do it, when to do it and why it should be done”.
Planning bridges the gap from where we are to where we want to go planning can also be defined as “ a predetermined cause of action that helps to provide purpose and direction for members of an enterprise.

 

In designing an environment for effective performance of individual working together in groups, the most essential task is to see that purpose and objective and methods of attaining them are clearly understood. Planning is the first function of a manager. It is necessary if anything or activities is to reach the denied goal. Through planning a manager can approach pre-determined objective rationally. All the work of an executive whether he know it or not, is some way connected with the unfolding of a plan. In identifying the role of planning in business organization, Koontz et al State that, “we are in an economic technological social and political era in which planning like other function of managers has become requisite for enterprise survival”.
Planning is unique in that it established the objective necessary for all group efforts.

 

Planning and Forecasting are important tools of company management and decision- making as they assist in the appraisal of investment project in the analysis measurement and improvement of current marketing strategy and manpower planning and in the identification and development of new products and new market further they promote and facilitate the proper functioning of the many aspects of company’s activities.

 

Planning and Forecasting are compliment in that for a good result both go together they could be regarded as independent parts that make a specified whole writing also in the concept, Koontz O’ Donneil states that forecasting especially where participated throughout the organization may help to unify and co-ordinate plans. By focusing attention on the future, it assists in bringing a singleness of purpose to planning”.

 

 

1.2     BACKGROUND OF THE SUBJECT MATTER
The popular super market called Eastern Shop was established in May 28, 1960 almost five (5) Months after the independence of this country, this took place at Ogui Road Enugu then Anambra State now Enugu State which is formerly known as the headquarters of Eastern Nigeria.
The supermarket is situated opposite Nnamdi Azikiwe Stadium and around it were other big shops like Bubble’s, ABC Transport etc. the amazing thing concerns this shop is that the manager or the sole proprietor is a family man that had engage in other business and finally settle in opening a big supermarket. He entered into the business with little or no experience in the field of supermarket business.
Originally the name of managing director of the supermarket is Chief M.O. Okoli, Ozo Zulu Agulu 1 of Agulu in Aniocha Local Government Area of (old and new) Anambra State. He is one of the pioneer members of Enugu State association of supermarket this was to enable him to curb some of the problems that he is passing and planning in business. The supermarket has other branches in Lagos, and Onitsha. In the establishment, he employed general operation manager (GOM) who sees to the running of the business. The company also has shop manager who direct the affairs of cashier, store manager and restaurant department and report to the GOM. Eastern shop is made up of five (5) departments/ units.

  1. Accounting department
  2. Cashier   department
  3. Store department
  4. Restaurant department
  5. Cold room department

Eastern shop deals mostly on consumer’s goods like cosmetics, wears, candy foods, baby wears and toys. The problem of proper planning and forecasting is among the major problem that limits the more expansion of the business these can be clearly seen from an adage that says “ that business is full of risks”.
Besides, the researchers were able to note the sum of N500 Naira was used as initial capital of the business and today the property of the business is on millions and it have more than twenty people as employees, this simply means that it is no longer small- scale business as the law required. But as a result of inadequate application role of good understanding in the techniques of forecasting and planning integration in business; he cannot make good pricing quality and quantity of product sales.
Since improper planning is as good as not planning at all based on the above promising and manifesting problem, these calls for the researchers to investigate the project topic to help the present situation that is facing the business.

 

 

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