ASSIGNMENT

The Planning Process and Entrepreneurship Assignment

Part 1

The Planning Process and Global Market

The unemployment rate continues to rise, housing prices due to the fall of surplus stocks, and small business lending to a standstill, this downturn does not seem likely to end soon. Recovery will be slow, and Americans certainly do not enjoy the prosperity of a few years ago for a long time. It's not just economists who think so. "Half the people [] new ABC News poll finds, as job security and pension prospects in the coming years will be worse than their pre-recession levels." ("Survey: Less Job Security" new normal "," ABC News Poll group, 15 June 2009, an analysis by Gary Langer) This is a trust, or lack thereof, is an integral part of the economic cycle. Analysis goes on to say: "Those reduced expectations - plus the pain of the current recession - fed by retrenchments in consumer behavior that could radically change the economy"(Eric, 1993, p. 102).

In general, consumers are hunkering to limit spending, save money, save resources, and changing how they live. Great influence on the health of the economy psychological condition of its customers. When there is widespread opinion that the expenditure in excess of the need to be unwise, people will change their habits and as a result, some businesses will be forced to close its doors. Economy molt in the new compact animals. Instead of reacting in desperation to avoid death, the company should interact with the current situation with innovative and forward thinking action.

Regardless of the economic downturn, increase profits, usually number one goal of any business. To ensure profitability, the company must demonstrate a competitive advantage over others in their industry, or cost leadership (the same product, as competitors, lower price), differentiation (the same price, better service), or focusing on an exclusive market segment ( niche). For long-term maintenance of competitive advantage, a firm must ensure that its methods can not be duplicated or imitated. This requires constant analysis and adjustment of the regular competitive strategies.

Recession optimal time to invent a competitive advantage, since the pressure weak economy some strong businesses from the weak, the weak fall out of the game completely. Your business will be strong if you have a plan of action based on little research industry, analysis of what you have and what you want, and the continuous monitoring of your plan. This kind of innovation is not only a necessity right now, but it is an opportunity to improve the quality and efficiency way of doing business (Thompson, 2002, p.413).

Three basic steps for growing businesses in any economic situation are: increased efficiency (to maintain yield while reducing resources such as time and money), the increase in volume (to produce more in order to spread fixed costs), business restructuring (changing the goals, methods and / or philosophy). If you plan to implement one of them, you can also plan to implement them all. Focusing on one of the above strategies, you will find a ripple effect that ...