Notes On Significance And Objectives Of Corporate Planning:

       Importance or Significance of Corporate Planning:

  1. Corporate Planning reveals the future requirements of the corporation
  2. Corporate Planning gives enough time to the management to arrange the resources in accordance of the needs of the enterprise.
  3. Corporate Planning gives the much needed assurance to the potential investors and the bankers regarding the utilisation of the scarce resources.
  4. Corporate Planning helps to initiate a definite mechanism of control.
  5. Corporate Planning facilitates comparisons of the achievement of objectives with the planned and thus chalks out the deviations and the factors affecting to it.
  6. Corporate Planning helps to take necessary steps to remove the obstacles in the achievement of the objectives of the firm.
  7. Corporate Planning helps to minimize the cost of raising funds and also the uncertainties of the business by making the firm more adaptable to such factors.
  8. Corporate Planning provides to the working personnel the clarity of the purpose of their activities and creates awareness of the corporate goals and problems.
Objectives of Corporate Planning:

       The basic objectives of corporate planning are to improve the strategic decision making of the company so that the scarce resources and talents are put to the optimum utilisation and in the most profitable ventures.

       In the opinion of M. C. Branch, "The ultimate purpose of corporate planning by a business firm is, the improvement of profit and return investment over time."

       Precisely, the objectives of Corporate Planning can be pointed out as follows:

  1. Optimum allocation of scarce resources like finance, man power, technological knowledge.
  2. Making the enterprise adoptable to the environmental fluctuations.
  3. Revealing the strength and weakness of the firm and taking required steps to rectify the deviations (if any)
  4. Assisting in the overall development of the management and foster profitability.