Summary
In this essay, we intend to analyze the importance of planning for small and medium-sized companies in Mexico. The intention is to identify the main problems that exist in small and medium-sized companies to implement strategies according to these problems and especially to make decisions in the company. Its purpose is to see the importance of planning in the short and long term, in such a way that we know how to establish the objectives and goals for the organization. It is necessary to emphasize that just by making plans does not mean that you will be successful, but that you must continually work and cover the opportunities for improvement in the organization.
The importance of planning in SMEs
introduction
This paper aims to analyze the importance of planning in small and medium-sized companies in Mexico, which undoubtedly, thanks to them, contribute a good percentage of employment in the country, compared to transnational companies where the percentage is small. Both the importance of these companies as well as the importance of planning, since the vast majority of them do not plan for the future and when problems arise in the market, they usually have large losses or until the closure of the company. So we can also know the reason why it closes and what it should pay attention to. We will find in this work the administrative process and the definition of each of the stages,How is it that they are linked and that, like planning, it is vitally important to be attentive to how they respond according to the company, always measuring and correcting to achieve the best results in the organization.
II. Background
It is essential as "The company was born to meet the needs of society by creating satisfiers in exchange for remuneration that would compensate the risk, efforts and investments of entrepreneurs" (García M., Fundamentos de Administración, 2006, p. 43). Having said the above, we can see how a company arises in society and how relevant it is for potential clients and clients. Now mention will be made of the importance of Small and Medium Enterprises in Mexico, let's begin by analyzing the concept of a SME, as defined by the author Arthur Anderson as “An economic unit of production and decisions that, through the organization and coordination of a series of factors (capital and labor), seeks to obtain a profit by producing and marketing products or providing a service in the market ”(Anderson,1999), the author points out that they are small organizations that organize the factors they have to achieve their established objectives, since the sense of being is to achieve good economic growth. These companies are particularly characterized by family members. Small and medium-sized companies have long allowed many Mexican families to support themselves economically; Since from the income it obtains, they cover the expenses that are had in the home as well as that of the business with which it is counted and at the same time they generate employment, regardless of the fact that the number of employees is very small. These families do not need to do any extra work, they are support for the next generations and also contribute to the economic growth and development of the country.in an empirical way without realizing the help they provide to our country.
The problem that small and medium-sized companies have had to overcome is globalization, this situation forced many of these companies to close due to the large number of the arrival of companies, transactions that arrived in our country, globalization brought an increase in levels of competition, for which they were not prepared, to face these commercial chains, the author Koontz makes reference to the aforementioned, "The gains of globalization not only benefit Western corporations,…" (Koontz, 2008, p. 12) but also companies from other countries that have a good level of competition in their provision of their services and goods benefit;while for small and medium-sized companies they were affected by this change and that every day they have to update to be competitive in the face of the competition.
Over time, many of the small and medium-sized companies have been affected by these changes that have occurred in our environment. Many of these companies do not have professional advice to adapt to the market. As mentioned by the author Koonts "The establishment of objectives and an orderly planning are necessary for a good organization" (Koontz, Administration a global and business perspective., 2008, p. 124). It allows us to clearly see the importance of setting out our objectives that we want to achieve and to have good planning in the organization which will allow us to be successful like large companies. A Basic Concept of the Planning Stage from author Robert N. Anthony tells us “Planning is the process of deciding what actions to take in the future.Generally, the planning procedure consists of considering the different alternatives in the course of actions and deciding which of them is the best ”(García M., Fundamentos de Administración., 2006, p. 64).
In this essay we can point out a brief analysis of the planning stage that is immersed in the administrative process, since as Münch García points out “The principles of administration are fundamental truths of general applications that serve as guides of conduct to be observed in administrative action ”(García M., Fundamentos de Administración, 2006, p. 66), stage in which what is going to be done in the company and what we expect is defined, the basis that will allow us to start from everything we want to achieve. Next we will see relevant points that must be taken in the planning of a small and medium-sized company in the face of the competitiveness that exists.
III. Development
After knowing the concept of planning from the author Robert N. we can identify the importance of having a planning before starting a business or to apply in an organization that is working. Planning is a stage of the administrative process, from there the other stages are developed, while planning is the base, most of the authors use four stages of the process; We will briefly mention these four stages below. As we already know, planning is one of them, which consists of selecting the objectives, goals to be achieved and it is required to make decisions to achieve it. Next is the organization, in which the organizational structure is established, mainly the roles that each person will play in the organization are determined. The third stage is directing,It is to influence the people who collaborate in the organization to collaborate on the goals and objectives of the organization. And last but not least is the control stage in which the performance in the organization is measured and corrected and rectify that it is in accordance with the plans. After this brief description of the stages of the administrative process, we can identify the importance of the planning stage, since it goes hand in hand with the other stages and that even in the last stage it is rectified that what has been planned is being doing.And last but not least is the control stage in which the performance in the organization is measured and corrected and rectify that it is in accordance with the plans. After this brief description of the stages of the administrative process, we can identify the importance of the planning stage, since it goes hand in hand with the other stages and that even in the last stage it is rectified that what has been planned is being doing.And last but not least is the control stage in which the performance in the organization is measured and corrected and rectify that it is in accordance with the plans. After this brief description of the stages of the administrative process, we can identify the importance of the planning stage, since it goes hand in hand with the other stages and that even in the last stage it is rectified that what has been planned is being doing.
In planning it is essential to determine what you want to achieve in an organization to establish the functions and use strategies that allow us to achieve the goals and objectives established in a certain time, but it does not end there because it will have to be measured if what was achieved was achieved. wanted, this can only be achieved through planning. If this has not always been the case, it will be necessary to correct and create new objectives with the strategies that allow us to obtain satisfactory results for the company; planning implies making the best choice of decisions that you intend to make in the future. The efficiency in the execution of the planned depends on the expected results. For the established objectives to be satisfactorily achieved, they must be done effectively and efficiently, that is, they must be done well,in the shortest time as well as using the least possible resources.
Planning is a starting point in all administrative activity, among some elements that planning in an organization includes is the mission, vision, purposes, research, premises, objectives, organization chart, strategies, policies, activity programming and budgets, which It also represents making decisions to decide what is going to be done, that is, choosing an option among several alternatives that we have. Thus, we will have plans for what we want to focus on and where we want to go; This will be the basis of the ongoing project, with the planning it is always intended to optimize the resources that can be achieved and above all achieve the best results.
“Short-term plans are often made without reference to long-term plans. This, obviously, is a serious mistake. " (Koontz, Administration a global and business perspective, 2008, p. 115). As the author refers, we usually do not link the plans that we have in the short and long term, and in the end they represent a serious error for companies and what was planned is not achieved. It is vitally important to link short and long term plans, as these two go hand in hand; short-term plans are the basis for achieving long-term ones. These plans must be continually reviewed and analyzed to know the results that are being obtained, it will also allow us to identify the errors that exist and make the corrections that are necessary to achieve what we want.
One of the main challenges that small and medium-sized companies in Mexico have to face is the time they are in the market, since according to INEGI indicators that up to 80% of them fail in a period of no more than two years, the closing of these companies is especially in the absence of planning. Every company develops in an environment that is very changing, many of these small and medium-sized companies are not prepared for these changes and more if they do not have planning and strategies to face the environment in which they find themselves; These companies must adapt to changes in our environment, currently the market is more competitive every day, which represents more work in the organization. Among the main events that these companies are not prepared for are natural disasters,reforms to tax laws, technological advances and competition before the environment; It seems that they are not related but are of vital importance for the development of a company.
Most of the owners of small and medium-sized companies do not have enough information to face or also strategies to face these events that many companies do not face and go to want, they can even lose a lot of money for not having knowledge or searching advice. Therefore, it is necessary to design and implement strategies that help us to deal with and get out of these problems that happen very often.
Small and medium-sized companies very often face similar problems, the reason for these problems is the lack of planning. One of the main ones is technological advance; Small and medium-sized companies have been affected with “Technological and economic advancement has created the stock of a great diversity of companies. Applying the most appropriate administration to the reality and the specific needs of each company is the basic function of every administrator ”(García M., Fundamentos de Administración, 2006, pp. 44 - 45).
As the author Münch García points out, technological advances have been obstacles for these companies, since the vast majority of them do not have the necessary capital to invest in machinery, as advantages would allow us to increase their production, have quality in our products and less manpower. Not only in machinery, but also in systems especially for SMEs, so that they can adapt it to the capacity of these companies, which means that they cannot develop their potential. One of the problems that arises is the internal organization, they are one of the main problems that occurs since they are of a family nature and there is little supervision in the internal functions of the company.Among the serious problems that are observed in small and medium-sized companies is the knowledge of the market to which they are going to go and as we see it is the main thing in planning since that is where we define where we want to go; the lack of knowledge of the competition and how to face it is a disadvantage for us. Then we find ourselves with correctly planning the production, it is necessary to measure and control the quantity to be produced, correctly distribute the work functions; By not correctly performing the aforementioned measures, it becomes a poor level of productivity and too high costs for the operation. A problem also arises here, and we are talking about inventory control, the lack of good planning in purchases,It can lead us to over-inventory warehouses and cause additional storage costs. And last but not least is mismanagement in the company's finances, since many of these companies do not know the tax obligations with which they must comply. Very few of the small and medium-sized companies have accounting records; the lack of real financial statements and not having timely information to make decisions are frequent problems they go through.the lack of real financial statements and not having timely information to make decisions are frequent problems they go through.the lack of real financial statements and not having timely information to make decisions are frequent problems they go through.
Companies that have adequate planning achieve the objectives that are set, since it is an important function in the administration. Planning is to achieve objectives, goals that the company has, it is also to prevent events that are to come so that there are no financial losses. Planning consists mainly of making decisions to choose the best for the company.
IV. conclusion
This work shows us the importance and relevance of planning in small and medium-sized companies, since before it is underway and thus when it is underway, precautions must be taken for what awaits us in the future, and at small and medium-sized companies do not survive in the market but adapt to the environment that exists. On the other hand, decision making is considerable in short and long-term plans, since both of the hand to achieve the objectives that are intended to be achieved for the company, after the short and long-term plans are established, they must execute effectively and efficiently; ensuring that it is achieved in the shortest possible time, that things are done well and above all using the minimum of the organization's resources,as well as motivating the collaborators to achieve it satisfactorily. We have also seen that these companies are family-owned, in which family members, friends and acquaintances work, and it is usually a bit complicated to achieve all the planned objectives, without a doubt, strategies must be taken so that the objectives are achieved. objectives. One of the characteristics of these companies is that they do not have a high level of study, which indicates that they do not have enough knowledge to face these problems, however they can be advised to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.We have also seen that these companies are family-owned, in which family members, friends and acquaintances work, and it is usually a bit complicated to achieve all the planned objectives, without a doubt, strategies must be taken so that the objectives are achieved. objectives. One of the characteristics of these companies is that they do not have a high level of study, which indicates that they do not have enough knowledge to face these problems, however they can be advised to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.We have also seen that these companies are family-owned, in which family members, friends and acquaintances work, and it is usually a bit complicated to achieve all the planned objectives, without a doubt, strategies must be taken so that the objectives are achieved. objectives. One of the characteristics of these companies is that they do not have a high level of study, which indicates that they do not have enough knowledge to face these problems, however they can be advised to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.and it is usually a bit complicated to achieve all the planned objectives, without a doubt, strategies must be taken to achieve the objectives. One of the characteristics of these companies is that they do not have a high level of study, which indicates that they do not have enough knowledge to face these problems, however they can be advised to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.and it is usually a bit complicated to achieve all the planned objectives, without a doubt, strategies must be taken to achieve the objectives. One of the characteristics of these companies is that they do not have a high level of study, which indicates that they do not have enough knowledge to face these problems, however they can be advised to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.which indicates that they do not have enough knowledge to face these problems, however they can get advice to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.which indicates that they do not have enough knowledge to face these problems, however they can seek advice to update themselves or face the problems that exist in our environment. Every company that has adequate planning to achieve its objectives, planning consists of establishing objectives and goals for the company and that they achieve.
V. References
- Anderson, A. (1999). Dictionary of Economics and Business. Cannes, KW (2008). Management a global and business perspective. Mexico: McGraw-Hill. Cannes, KW (2008). Management a global and business perspective. México, DF: McGraw-Hill. García, M. (2006). Administration Fundamentals. In M. García. Mexico: Trillas.García, M. (2006). Management fundamentals. Mexico: Trillas.García, M. (2006). Administration Fundamentals. Mexico: Trillas. (2006). In MG Lourdes, Fundamentals of Administration. (P. 112). Mexico: Trillas. Münch Galindo, L. (2006). Management fundamentals. Mexico: Trillas. (2006). Administration Fundamentals. In L. Münch Galindo. Mexico: Threshing.
