1.1 BACKGROUND OF THE STUDY
As the name implies, corporate planning involves planning for an organization as a whole. It is a systematic approach to strategic decision making. Corporate planning indicated a holistic approach for winning the goals of any organization.
In general, planning is a management system, a process of allocating, effective and efficient use of scarce resources of any organization to bring home its objectives and goals over a specific period of time. The principal motive of any business organization is to increase the value of the owners equity. The objective of any organization are achieved by effective and efficient use of its resources.
An organization has mainly two types of resources:- the human resources and the monetary resources. All the resources are monetary except the human resources. Corporate planning can boost an organization to maximize the utilization of its resources and fashion in a befitting
manner to attain the enhancement of the shareholders wealth which is the basis of any corporate business. Corporate planning can yield many benefits for all types of business organization. It encouraged management to think ahead systematically, it forces the company to sharpen its objectives and policies, leads to coordination of organization’s effort and provides clear performance standards for control, sound planning helps the organization to anticipate and respond quickly to changes in the environment and take precautions for sudden changes and developments. For instance, banks adopt precautionary measures during global financial crisis.
Corporate planning involves the acceptance that the enterprise does not operate in a vacuum and that its activities are affected by what goes on in the world around it. It also questions – what can be done today to be ready for an uncertainty tomorrow. Thus the ability of the management to understand the environment, make good forecast and then choose a proper course of action that will enhance its existence as a corporate body. How well management have
been or will be in doing this is the main thrust of this research.
1.2 STATEMENT OF THE PROBLEM
The future posed a serious problem to every business organization. All responsible managers see the continued existence of their organization as a major task of the management.
Some of the problems an organization faces in achieving their goals are:-