Planning functions of management - Essay Example

However, Nestle usually plans for some period of time. Three to five years are more typical planning horizons. As one of the most important functions of management, planning process is based on stipulated criteria and procedures which have a great impact on planning processes. Criteria such as reduced cost, improved quality, improved sense of direction, better teamwork, and improved service delivery might be used. The timing of any evaluations should also be considered. In Nestle, the plan involves deciding upon how resources will be used to help the organization achieve its strategic goals.

It relies more on past records and involves shorter time periods. Present conditions are usually dominant in the planner's mind when the organization initiates a plan and these may be overstressed. Also, many events are obviously unforeseen, but planning can be aided by techniques giving suggested probabilities of events taking place (Bateman, Snell 2004). In Nestle, a special attention is given to product quality and product standards. This policy is important because Nestle produces a wide range of food products from coffee, beverages and ice-cram to infant food and pet food.

The responsibility of companies in food industry is to analyze social conditions and possible threats of their products for potential consumers. They should be well aware of regulation changes and should not sell a product which can be injurious to health. In order to meet high standards and quality, Nestle constricts its activities according to legal regulations and requirements stipulated by EU for European countries. Also, planning process include analysis of the macro-environment (e.g., economic trends, inflation, changes in citizen needs, changing demographics, etc.), the government environment (especially changing federalism and state government trends), the competitive environment (the present and potential competition, particularly as related to economic development), the citizen environment (what the service user says), and the organization's internal environment (e.g., is there antiquated technology, high turnover, many people planning to retire soon) (Boone, Kurtz, 1992).

Environmental scanning will also identify a variety of factors, both internal and external to Nestle, to be considered as part of the planning process. In fact, one of the benefits of planning is that an organization will gain a better understanding of how environmental scanning should be done and be able to manage more effectively as a result. Factors to be considered as part of the macro-environmental scanning process include social factors such as demographics, financial factors such as interest rates, and political factors such as increasing government deregulation, changing federalism and state government's trends, and regulations (Campbell, 1997).

Among the factors to be considered as part of the government environment are the number and locations of other governments, the degree of federal and state government presence, the typical services being provided, and the marketing strategies of other competitive local governments.Ethics and corporate social responsibilities affect all decisions and plans developed and introduced by the company. From the very beginning, Nestle clearly informs customers about threats and possible impact of products.

Ethical guidelines and social responsibi