Strategic planning

Strategic Planning
Student’s Name
Institutional Affiliation
Strategic Planning
A company’s goals and mission are essential as they set out what the company aims to achieve as well as the direction the company intends to take. The two are also important for employees because it is a well-established fact that the activities the workers engage in are geared towards achieving the firm’s objectives (Whiteley & Whiteley, 2006). Moreover, managers consider the organization’s mission and goals when preparing a budget. It is imperative to do so because the purposes of the company determine its expenditure. It makes no financial or economic sense to budget for something that is not in line with the organization’s mission or goals.
The importance of sticking to a company’s goals cannot be overstated. They form the core purpose of the company (Sabrautzki, 2010). Apart from helping the management plan for a budget, it also affects the company’s productivity and profitability. The two are directly linked to the performance of the employees who work towards achieving individual goals that are in turn aligned with the company’s objectives (Phillip & Gully, 2011). The employees work in tandem with each other and with management to ensure that they achieve the set goals. By contrast, management and employees can ignore goals and mission only to their detriment and that of the company. Failing to abide by the two means that workers are not working towards achieving any set goals. Therefore, the organization’s profit and productivity will drastically decline and in some instances might even lead to a shutdown of the company.

In summary, an organization’s management should adhere to goals when preparing a budget to ensure that it does not go beyond its financial limits. Further, the goals and mission are essential towards helping the company improve its profit and productivity.
References
BIBLIOGRAPHY Phillip, J., & Gully, S. (2011). Organizational Behavior: Tools for Success. New York, NY: Cengage Learning.
Sabrautzki, S. (2010). Strategies, Mission, Vision, Goals. Munich: GRIN Verlag.
Whiteley, A., & Whiteley, J. (2006). Core Values and Organizational Change: Theory and Practice. Chicago, IL: World Scientific Publishing Company.