What types of firms are most likely to benefit from a formalplanning process? What types are most likely to face the planningmisfires discussed in this chapter?
Expert Answer
Firms with unstructured organization structure are most likelyto benefit from a formal planning process since formal planningprovide a structured framework without binding every action of theenterprise.
Firms with formal planning are most likely to face the planningmisfires. Since planning in these firms is fixed structured it mayresult in poor forecasts of future conditions, plans imposed fromabove, planning as a self-contained activity, extensivebureaucratization, and inflexible adherence to objectives andprocesses leading to misfires.