ORGANIZATION AND MANAGEMENT

ACTIVITY FOR NATURE OF PLANNING

Global Interactive Corporation (GIC) is a big company that produces computer and
tablet peripherals such as monitors, headsets, and speakers. They sell their products all
over the Philippines and online. They have a mission to be the leading mid-price choice
for Filipino gadget needs.
Due to the COVID-19 pandemic and the lockdown restrictions, the demand for GIC’s
products increased, and business was expected to grow. During the strategic planning,
top management decided to focus on increasing the volume of materials imported for
their products to meet the demand. Initially, this addressed the situation, and sales for
GIC went up by almost 50% for the quarter. Because of its apparent success, the
management decided to stick with this strategy to sustain the improvement in revenue.
Nonetheless, the next quarter’s reports showed a 30% drop in sales. Upon
investigation, it was found that this was caused by thousands of damaged and delayed
customer orders. This resulted in the decline of orders as well. Apparently, during their
initial planning, GIC increased production quotas without increasing the number of staff.
This caused the staff to extend work hours, which resulted in their getting sick and
lapses in quality control.

Guide Questions
1. Why is planning the foundation of management functions?
2. How would you evaluate Global Interactive Corporation’s planning process?
3. How would Global Interactive Corporation’s actions during planning affect their
business and operations?
4. Suppose that you were part of Global Interactive Corporation’s top management.
Suggest ways on how your organization can improve your planning success.