What are three factors that impact the planning process? How do these factors impact the planning process?

The three factors are as follows:

Business Plan- Long and short time Company’s business plan.
Financial Planning- involves measures such as sales, targets and earning growth.
Strategic Planning- are related to the firm’s business position and may include measures such as market share and reputation.

The blend of these three factors can impact the progress of any company. Lack of strong business plan can create a chaos in the company. Employees will be confused with the goals and expectations. A lack of strong financial planning can end with the IRS audits as the sales numbers and targets will be hard to track and earning growth will be negative when variance analysis is monitored. In a competitive market environment, reputation of the company plays a vital role which will be impacted if not addressed properly!

Concerns regarding corporate ethics have grown steadily throughout the past decade. In order to remain competitive, many organizational leaders are faced with the challenge of creating an ethical environment within their organization. In today’s corporate environment a company needs code of ethics in the organization so the employees will know how to “behave” in the company and thereby creating “Behavioral Planning” an important impact in the planning process.