Question

To be effective, “managers implement six management functions as they carry out the process of management”; the first of these processes is the Planning function. “This function requires the manager to set a direction and determine what needs to be accomplished. It means setting priorities and determining performance targets” (Longest et al., 2000). As you can see, planning is also something that relates to the household setting.

It is often said that a household is actually a small business. Consider this as you respond to the questions below.

In your first post, explain:

Do you agree with the statement above? Why or why not?

Discuss two ways in which your household functions like a small business and talk about two challenges that both the household and the business might experience.

In the household setting, how do we use the planning function and how is this function used by the small business owner?

Answer 1

Yes, I agree with the statement that a household is actually a small business because a household to be successful needs to have certain objectives and goals and this can be achieved with the help of proper planning and execution of the processes or else it will experience failure. Like a business plan, a household plan requires certain details and developments which will help the organization same for the household as well.

The functioning of a business requires certain operational costs just like the households which includes rent, electricity expenses, wages which are required for the proper functioning of a business as well as a household. If we look at small business and household we will observe that the similarities are many like the planning function that is done at the starting of each month regarding the income and expenses of the household which is quite similar to that of a small business. I believe that the challenges experienced are similar like impediments regarding wealth and in both the cases they look for loans that will help them. At the end of each month the household may look for the actual expenses and savings same goes for an organization as well. Forecasting is also an aspect that both business and a household executes which helps them manage and operate future business expectation.