Planning is the first and most important part of management. Every business starts from planning which defines what goals a company wants to achieve and what strategies and plans are for achievement. Planning in company can be one-time, permanent and contigency, while their time period is one year to five years. On example of company from Split, Basic d.o.o., which is a company for wholesale in electromaterials and lighting, we explained the function of planning in company, and there are goals, vision, mision, and strategy for achieveing competitive advantage. Main goal and plan in Basic d.o.o. is in customers happiness and satisfaction with the products and business partners to be above competition. Top management defines main assumptions of planning, vision, mision and goals. Middle level management defines main activities for every function of organisation(marketing, production, finance etc.). Operating menagement defines specific procedure and processes. Proces of planning starts by analaysis of the environment in which main role has SWOT analysis which shows internal and external factors, and it allows us to realize what chances are in and out of our organization. Competition is always good and healthy, because it encourages man to be more successful and more motivating for the bussines.