Globalization supposes the existence of determinants that limit or stimulate their development in companies. The vision that the current businessman assumes, with respect to the current reality, will allow him to develop a management that will guarantee the sustainability of his organization. The Latin American reality is very different from the one posed in the OECD (Organization of countries for Economic Cooperation and development), or developed economy countries.
More than the high levels of capital accumulation, the investment they make in research and development, the efficiency and effectiveness achieved in their operational management, the state plays a decisive role as guarantor of the development of companies.
Globalization is a stage of development of Capitalism that supposes from the market point of view the maximization of competition.
The Latin American economy is basically made up of small and medium-sized companies, which as a whole are the ones that absorb the greatest amount of labor in the region, their participation is significant in the regional GDP and foreign trade depends to a great extent on the sales made by these companies.
Unlike the active role of the state in developed economies, protecting their industries from foreign competition (subsidies, tariffs), in these economies the model focuses on their development from large companies, whether national or foreign. Legislation is made for large companies, their “lobbying” capacity is decisive in Latino parliaments, while small and medium-sized companies are reluctant to disappear from the scene despite the unfavorable conditions of the environment.
This concept is still valid, in the Latin American environment, for cases in which the state decides to intervene in the economy as an active agent.
The current market demand, regardless of the internal operating conditions of each of them, is to stimulate the existence of flexible organizations (adaptable to change), proactive not reactive, that is, organizations that anticipate events instead to respond to them each time there is a change in environmental conditions.
Planning as an administrative tool fully adjusts to the modern requirements of the productive society, among other reasons for the following:
It sets a direction for the organization, an orientation. This orientation is expressed in terms of longer-term, medium and short-term objectives. For the adequate formulation of the address, an adjusted diagnosis of the internal external reality of the company must be considered. This reading allows the employer to establish the current situation and trend of the organization in the middle.
It facilitates the analysis, evaluation, and control of all the processes of the company allowing the fulfillment of its objectives.
It makes it possible to achieve the efficiency and effectiveness of the company, understood the first as obtaining the maximum of the product with respect to the resources used without affecting the quality of the product, while the effectiveness is understood as the full satisfaction of the needs, demands and target customer expectations.
Well formulated and implemented the address in an organization, it must be reflected in the operation or management of the company, on a day-to-day basis. Each activity or task carried out reflects not only the Mission, Vision of the organization, but also their stated objectives.
A significant number of small and medium-sized companies in the region lack all types of planning, the activity is based fundamentally on the wishes of entrepreneurs to "get ahead", on their work capacity and on the knowledge acquired in their experience. personal or family.
In most cases, knowledge is transmitted by word of mouth, since the possibility of accessing higher academic knowledge is increasingly remote. The business structure, in this type of economy, is exposed to greater difficulties from the point of view of accessing administrative technological packages, such as the concept of Planning and its importance in business administration.
