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The first step in planning is to set objectives, for the plans must ensure that eveything that is done contributes to progress toward them.In a small company the objectives can be transmitted orally and progress toward them can be determined by simple reports,some oral and some in the form of figures.
In any case case the objectives are likely to be quite generally undersdood.
But in a larger organisation there are so many different activities, a number of which contribute onli indirectly to the primary objectives, that no control is possible unless the goals of each departement are spelled out in detail dovetailed.
Every organization is like a nation,born with an objective since organization is a means to an end in itself.In a business organization this objective is to make the higest possible profit!
The highestpossible profit is however, a phrase susceptible to many definitions. It may mean the largest dollar amount ,the highest profit on sales,or the greatest return on investement.
The last is probably the most logical figure .though not a;; companies emphasize it.
But the highest possible profit,however defined, is too vague an objective to serve as a basis for planning,A company must also decide such questions as:
1.What products or service will we provide?
2,To whom will sell? That is,what is our market ?
3. How will we sell (by advertising , direct sales, or both ) ?
4. What plant equipment, and personnel wil we need?THE FIRST STEP IN PLANNING IS TO SET OBJECTIVES,for the plans must ensure that everything is done contributes to progress toward them