High School ・Political Science ・APA ・2 Sources

In the real world, owing to potential underlying interpretations, there is so much detail that can be included in decision making. In organizations, the current planning phase is faced with the issue of making well-thought-out decisions about the different advantages that accrue. Dewar et al. (1993) described assumptions as those potential features affecting the activities and plans of an entity. The researchers further argued that an assumption should only be deemed important if its negation induces substantial changes in the planning and activities of the organization. For this cause, the performance or the loss of any particular profit-generating company is determined by well-made assumptions. Signposts are significant tools in the monitoring process and come up with measures to deal with any eventualities in case plans, and processes are affected negatively. Accurate assumptions in the planning process lower the chances of failure while raising the odds for success.
Assumptions results to an effective assessment of the business environment, hence better and improved operations. The environment so many external factors to be considered hence the need to make reasonable and well thought out assumptions. For example, business planning processes require looking for assumptions in the productivity, costs, capacity, the cash flow, technology, competition and other interrelated functions. Technology and international laws are two main factors that the military bodies in various countries are looking into and coming up with all possible assumptions (Echevarria 2011). Organizations should also be prepared for any unexpected changes likely to be witnessed in the external factors. They may include economic declines, weather changes or the shifts in the market interest rates. The key assumptions in these cases can, therefore, change without any prior warning.


Dewar, J. A., Builder, C. H., Hix, W. M., & Levin, M. H. (1993). Assumption-based planning; planning tool for very uncertain times (No. RAND/MR-114-A). RAND CORP SANTA&MONICA CA.
Echevarria, A. J. (2001). Rapid Decisive Operations: An Assumptions-based Critique. ARMY&WAR COLL STRATEGIC STUDIES INST CARLISLE BARRACKS PA.

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