Planning is necessary for any business to be successful, today
or 25 years ago. Businesses have always had to overcome both internal and
external crises throughout history. Globalizations, war, financial crisis,
government regulations, and changing culture, are nothing new. A leader has to
take into consideration what history has taught us in the past about the
likelihood of crises. With this knowledge, the manager needs to develop
business models, strategies and plans that can meet calamity head-on and be
flexible enough to adapt to changes in the external and internal environment of
the organization (Daft, 2013).
The increase in technology and the introduction of the internet
has changed the culture of the business world (Daft, 2013).Organizations have
to adapt to the current trends in business, globalization, fast-paced
technology, decreased resources, cultural issues, and organizational
partnerships (Daft, 2013). With the current trend in business, partnerships and
organizational interdependence, managers must have working knowledge of all the
corporations that have merged together (Daft, 2013). With the new collaboration
of companies’ traditional, vertical communication, organizational design structures,
strategy and control systems are not the norm. Leaders must adapt to a very
horizontal form of communication and become good collaborators (Daft, 2013). In
this new business world, common practice is to reach out to different areas and
cultures to build relationships, create new opportunities and gain additional
resources. This requires leaders to have a very thorough understanding of the
cultures that their companies infiltrate (Daft, 2013). Planning has not changed
in business, but the communication style has.
A business domain is a market that a company stakes out to sell
its products and services (Daft, 2013). The reading in the textbook refers to “domain”
as the company’s niche or the chosen environmental field of action and with
what external factors a business will collaborate to reach corporate objectives
(Daft, 2013).Growing and adapting to market change is essential for the
long-term survival of any business(Tsoukas & Chia,2002). Changing an
organization’s domain is sometimes necessary to adjust to current trends in the
market (Daft, 2013).
Changing a company’s product or market takes careful planning on
the part of the corporation (Daft, 2013). Changing a product, or where it is
sold, can be a very fruitful venture for a company and is sometimes necessary
for its survival. One example is when Chevy introduced the Nova car into South
America. The Spanish translation of Nova is “no va” will not go. Gerber
introduced baby food in France and the word Gerber is slang for vomit in the
French language (Tsoukas & Chia, 2002). The business must fit the product
into the subculture it stakes out as its domain (Daft, 2013). The product also
must be relevant to the customer. The organization has to have a strong
understanding of the culture to which they are marketing or creating a product
to sell. Selling burgers to Hindus who believe cows to be sacred would not be
profitable. Just changing domains will not make a company successful.
One example of a company that is changing their market focus is
Tide. In generations past, Tide always marketed their products to women. In the
recent years with gender roles blurring, Tide had a commercial during the Super
Bowl marketing their product to men. Tide even changed the packaging to appeal
more to men.
Throughout time, numerous management designs have been initiated
in the business world. Many of these techniques or designs have not been proven
effective through solid scientific evidence (Daft, 2013).One example that has
taken the corporate world by storm in the last 20 years is Six-Sigma (
Psychogios & Tsironis, 2012). Well-established companies like Motorola and
United Airlines claim significant profits, after the implementation of Six- Sigma,
despite no real scientific research that supports their claims. Six –Sigma has
been a global phenomenon that has led to many companies changing their
organizational design model, with no proof that the results that they are
seeing are from the implementation of six-sigma or from other forces in the
global market. Many organizations adopt the latest fad in management, trying to
appear current and establish validity for their corporation (Daft, 2013).
Other times, managers adopt fads to genuinely trying to find
solutions to complex problems in the world of business. By frequently changing
management styles, employees can lose morale. Individuals do not want to take
the time to learn another method only to have it replaced with another fad (Daft,
2013). Poor morale, of employees has been proven to decrease the productivity
of workers (Daft, 2013).
An example of an
organization changing its domain is the hospital that I am currently employed
at creating a maternity ward. The population in the area surrounding the
hospital has a significant population of women childbearing age. The hospital
did not have a maternity ward. Women had to travel 60 miles south to receive
maternity care. In the past, the population was top-heavy with older individuals,
the resources allocated to having a labor and delivery floor would not have
been profitable for the company. The hospital became sensitive to the fact,
that the population was becoming significantly younger. By providing maternity
services, it satisfied a current need (niche) in the community and generated
substantial revenue for the organization.
The world is constantly
changing, but the rules for success in business have not. Planning was
necessary to succeed in the past, as it is today and in the future. The Bible gives some very clear-cut advice on
planning a successful business. The Bible states that it is “unwise to make financial
success a priority” (Mathew 6:24, NIV). God must be the top priority over
money. God wants Christian businesses to be prosperous, but be responsible for
what they do. One way this was demonstrated in the reading, was when companies participated
in recycling (Daft, 2013).The organization must also guard it’s reputation by
practicing business in an ethical manner (Daft, 2013). A Christian leader must
place “all the goals under the submission of God” (James 4:15). God states in
the Bible, “The wise have a goal in mind” (Proverbs 13:16). “They accept wise counsel
when setting goals” (Proverbs 15:22).This is demonstrated in the reading that
it is beneficial to both organizations they consult each other to create a
better company or product (Daft, 2013). When all parties mutually benefit,
interdependence on other companies can help organization compete at a higher level
(Daft, 2013). This is a relatively new concept in business practices (Daft,
2013). The Bible states that to solve complicated problems,” to be open to new
ideas” (Proverbs 18:13). This is just as true today as it was 2000, years ago. The
managers of today should not completely abandoned traditional business
practices. Traditional business practices was, to make slow calculated
decisions regarding organizational design, practices and financial matters. God
also says that Christians should “plan carefully not in haste” (Proverbs 21:5).
Planning for business is no different today then it was in the past-- obstacles
will always be encountered.