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Strategic Business Plan



Table of Contents

Introduction3

Discussion3

Developing a Strategic Business Plan4

Elements of Strategic Planning6

Role of Manager in Business Planning Process15

Tools to determine and achieve Competitive advantage18

Business Planning Websites21

Checklist for Evaluating Business Plan22

Evaluating the Business Plan25

Conclusion27

References27

Strategic Business Plan

Introduction

Organizations from all over the world have one thing in common: competition. In order for organizations to compete in today's marketplace they have to have a plan of action or strategy. Strategic planning refers to a process which defines an organization's plan to effectively allocate its available resources. (Strategic Planning Performance, 2011) Strategic planning is the cornerstone of companies around the world. Without strategic planning, organizations would never know where they are going or if they ever got there. The most important concept of strategic planning is an understanding of organizational members to know they have to work hard to make sure the company's goals are met. This paper will

Discussion

Strategic planning refers to the setting of long-term business goals, and the developing and implementing of formal plans to achieve these goals Stonehouse & Pemberton, 2002). Managers within a strategic business unit or small organizations can make use of a variety of strategic techniques ideas and tools as part of the business planning process Small businesses that strategically plan are more likely to be those that achieve higher sales growth, higher returns on assets, higher profit margins and higher employee growth as compare to the ones which do not plan strategically. (Berman, Gordon, & Sussman, 1997)

Developing a Strategic Business Plan

A strategic business plan is a tool developed in preparation for establishment of a new business ventures and additionally, in improving business operations. Kolter (2009) stresses the importance of this tool as a prerequisite to business modelling. However, it is likewise important to understand what constitutes a strategic business plan before attempting to develop one. A strategic business plan takes into consideration all the variables that affect business performance. This includes internal and external variables. Kaye (2007) states that a strategic business plan must incorporate all the likely variables regardless of the magnitude of effect associated with them. An effective strategic business plan can be defined as one which identifies, analyzes, and draws conclusions with respect to variables that dictate business equilibrium shift. Such a plan is constituted of three important elements, namely: resources available, market scope and business operations (Kolter, 2009).

Resources determine how successfully a business operates. This includes financial resources, human resource, and material requirements. Strategic business plans help an entity in determination of staff requirements, financial obligations, and raw materials required in advance making it possible for easy budgeting (Haines, 2009). Through this plan, an entity is able to forecast its future resource requirements, cushioning itself from unexpected resource demands. Likewise, strategic business plans help organizations in strategizing for future events, which may include expansion of investment and withdrawal where appropriate.

Market is a fundamental part of any business; it describes the customers targeted by a business entity. In development of strategic business plans, an entity must define how it intends ...