Planning function of management refers to establishing goals, coming up with the strategy for the achievement of those goals and making plans to structure activities for successful implementation of the strategy. Planning is usually the first step involved in any activity, be it a simple decision to buy a new phone or a complex decision concerning a million dollar project. Planning should reflect a realistic picture in that it should be based on achievable. For example if any organization has minimal resources but takes on a project that involves high resource commitment and capability, the project is bound to fail no matter how awesome the strategies are.