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Why is it important to understand your business

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Why is it important to understand your business processes and functions and keep them “inhouse”?What are the 4 types of plans that every organization must have?According to the article, the ability to plan, act, and make adjustments in realtime is the key to running a great organization. By having a well-written business plan,a business can organize itself and validate its central idea. It can summarize itsstrategy to obtain funding from lenders and investors. A business plan can also helpattract employees and partners. Acting as a blueprint or a roadmap, a business plancan help anyone who is thinking about starting a business or any business establishtheir goals and develop an identity. It can also be used to refer to when challengesarise.The article also states that insourcing—bringing as many business function aspossible in-house—increases creative control, keeps customers happier, and boostsprofitability. I agree with this statement and I think that it is important for anorganization to understand all the processes that go into keeping it running. In the pastdecade, P&G has relied too heavily on outsourcing technical work to other companiesin order to cut down on costs. A developer in India was way cheaper than supportingone that was in-house. However, after a few years, the company realized how littleunderstanding remained of the internal processes that were going on to support theirbusiness. They realized that to regain control of the functions and process, the overallcost was actually higher than if they never outsourced. That is why as part of therestructure, they reinvested so heavily into bringing technical expertise back to thecompany. Therefore, it is important to keep them “in-house.”The 4 types of plans that every organization must have:1.Strategic Planning – process of determining the primary objects of anorganization and then acting and allocating resources to achieve thoseobjectives2.Tactical Planning – involves implementing the activities specified by strategicplans. Tactical plans guide the current and near-term activities required toimplement overall strategies.3.Operational Planning – creates the detailed standards that guide implementationof tactical plans. This includes choosing specific work targets and assigningemployees and teams to carry out plans in specific functional areas4.Contingency planning – plan for business disruptions from events such asaccidents, disasters, or economic downturns. This allows them to resumeoperations as quickly and as smoothly as possible after a crisis.
Question 10: Traditional roles are changing in businesses.Why is it critical that the CIO and the CMO work closely together today in order to facilitatethe business transformation that most companies must accomplish to stay competitive?
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Term
Fall
Professor
Hu
Tags
Management, Quiz, ONLINE, Assignment, MGMT390

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