BUSINESS MANAGEMENT

The role & contribution of Business Planning



Introduction1

Discussion2

The importance of Business planning2

Benefits gained from planning activity2

An Overview2

Investors & stakeholders3

The team4

Hard & Soft Systems Factors5

Definition of the Hard S's6

Definition of the soft S's6

The impact of hard & soft systems on business planning7

Tools & techniques for business planning8

External Environment8

PEST Model9

SWOT Analysis11

Porter's five forces analysis13

IKEA Business Planning Process14

Introduction of the company14

Critique IKEA's business strategy14

Techniques to measure strengths15

Business Opportunities for IKEA16

Weaknesses & Threats16

Suggested improvements18

Conclusion19

References20

Appendix A23

Appendix B24

The role & contribution of the Business Planning

Introduction

In the business world, the business planning process holds a key position in determining the success of an organisation. In today's world, the organisations meet a competitive business environment. It is due to rapid globalisation that has impacted the business world the most. Today, there are many factors that drive the success of an organisation. Over the passage of time, the business studies have developed principles and guidelines to effective business management.

In the language of a lay man, business planning is a process by which an organisation determines its mission and design strategies to achieve the objectives. The business professionals describe the importance of business planning through different perspectives. For Yee & Harrington, the aim of business planning is to define and establish the external centre of a business. The external focus encompasses the value served to customers, along with recognising the areas in which the organisation must develop, in order to accomplish its mission (Yee & Harrington, n.d, pp.3). Business planning is unique to organisations. Every organisation has its own mission and vision that guides its internal processes.

This paper aims to discuss the benefits of business planning in the context of determining success to an organisation. The write up elaborates the concepts of tools and techniques used in the planning activity. The assignment presents an evaluation of the business planning process of an organisation. Through the case study, the write up intends to elaborate the planning cycle and its importance.

Discussion

The importance of Business planning

The business planning is important for the long term health of an organisation. The dynamics of the business environment changes with time and situations. No one can expect the desired results to be observed as expected by a business plan. However, the planning process provides the necessary knowledge to deal with changes in a business. The process facilitates the business in adjusting to the changing dynamics (Barrow et al, n.d, p.9). An observation to the trends explains that a successful organisation has the most effective business plans. On the other hand the organisations, paying little attention to this discipline, are unable to outperform their business outcomes.

Benefits gained from planning activity

An Overview

For most of the new business ventures, a business plan is a document that explains the business plan from all aspects (Barringer, 2009, n.d). The plan serves a dual-purpose. It facilitates the processes inside and outside of an organisation. Inside an organisation, a business plan offers a roadmap that the teams must follow in order to execute the business ...