AS we learned in Chapter 1, organizations have a purpose, people, and a structure that supports and enables those people in carrying out that purpose. And in those organizations, managers develop goals, plans, and strategies for how best to achieve that purpose. For instance, Toyota Motor Corporation’s president recently said that hybrid and electric vehicles would make up half of the company’s global sales by 2030.1 To achieve that goal, managers will establish plans and strategies. And, after evaluating the outcomes of those plans and strategies, managers might have to change direction as conditions change. But it all starts with planning! This chapter presents the basics of planning. You’ll learn what planning is, how managers use strategic management, and how they set goals and establish plans. Finally, we’ll look at some contemporary planning issues managers face.