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There are some compelling reasons which forces allthe organisation to resort to strategic business

planning. The following reasons make planning anessential management process to keep the business ina good shape and condition:

1. market forces

2.technological change3. complex diversity of business4.competition

5.environment (threats, challenges,and opportunities)

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MARKET FORCES:

it is very different to predict the market forces such asthe demand and supply, the trend of the marketgrowth, the consumer behaviour and the choices, theemergence of new products and the new productconcepts.

The market forces affect the sales, the growth and the profitability.

TECHNOLOGICAL CHANGE: There are a number of illustrative cases throughoutthe world on the technological breakthroughs andchanges which have threatened the current business

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Creating new business opportunities. The emergenceof the microchip, plastic, laser technology, fibreoptics technology, nuclear energy, wirelesscommunication, audio visual transmission, turboengines, thermal conductivity and many more, areexamples which have made some products obsolute,threatening the current business, but at the same time,have created new business opportunities.

In the absence of any corporate plan, such a

technological change can bring the organisation intosome difficult problems and, in some cases, can posea threat to its survival.

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The corporate plan is expected to ensure the recoveryof the business investment before such atechnological change takes over.

COMPLEX DIVERSITY OF BUSINESS:

the variety of products, the different market

segments, the various methods of manufacturing, themultiple locations, the dependence on the externalfactors, such as the transport, the communicationsand the manufacturing resources brings complexity in

the management of business.

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Many factors are uncontrollable and unless there is a plan, prepared with due consideration to the diverseand complex nature business, handling these factor isnot possible.

COMPETITION:

facing competition in the business means fighting ona number of fronts.Competition could be direct or indirect. It may sharethe market or create a new product which will shiftthe market affecting your business.The companies compete on the merits such as theknow how, quality, prompt delivery, after salesservice, etc.

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Competition is a natural phenomenon in business,and it has to be dealt with in a proper manner to

protect business interests.This means that the management has to continuouslyevolve new strategies to deal with the competition.Competition forces the management to look for new

products, new markets, and new technologies to keepthe market share intact, the process controlled and thequality improved.

ENVIRONMENT:

the environment is beyond the control of themanagement. Depending upon the organization's

business and its purpose, different environments have

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Bearing on the fortunes of business.It could be one of the social, business, economic,industrial, technological environments affecting the

business.The environmental changes are different to predictand are generally slow.

Widespread education programmes have created newopportunities for knowledge processing andcommunication.Personal computers are fast replacing the typewriterson account of changing office environment.Values and attitudes make the penetration in themarket difficult.

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Similarly continuous increase in the cost of transportaffects the tourism and hotel industry, but promotesthe home entertainment industry.Business planning, therefore, is absolutely essentialfor the survival of the business.Planning does not eliminate the risk but provides an

effective tool to face it.

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