STRATEGIC BUSINESS PLANNING

Strategic Business Planning

Strategic Business Planning

“The chief executive of the business or business unit should take overall responsibility for the plan, but the best business plans are developed by the whole….for an enterprise-wide plan, all departments…should contribute to the planning process and the final documentation”

A business plan is crucial element of any business. It contains all the description as to how should we achieve the vision of the business. Planning plays an important role in business plans as approximately 80% of new businesses fail are mostly due to a lack of planning and the process planning, which is very necessary for the smooth flow of business. It is important for the plan that it should include all the skills to examine and clearly understand the issues (LOTZ, 1992, 272).

Business plan and business planning process

If planning is good than there is no issue for the business as it is necessary that the business should focus on strong planning. T biggest mistake which is committed by business planners is to misunderstand the market and the opportunities available to their product or service. Many new entrants in business are excited about their product or service and assume that consumers will be. They then play around with the figures so as to give realism to the business opportunity. In other words, some planners make their dreams for reality. It is not uncommon for professional planners rejected the plan after a review of just a few minutes when the planner is not clear of the business opportunity. This is the question that the investment companies in venture capital busy interested first and foremost.

This statement reflects the importance of business plan and there management which are involved in it. It is necessary that while planning the business should be fully involved in the planning process. A business plan is the foundation of any business and the start of a more advanced and improved business strategies. The business plan is a minimum of guarantees for investments. This is not a fad or a whim of the investor. The business plan consists of an outline that explains the objectives and financial projections of the business. The information is necessary for the business as it includes all the business activities of the organization (MATTESSICH, 1961, 384).

Business planning process

Business planning processes help to identify and develop strategic directions in support of the company's mission, vision and transformation strategy into action through business plans short-term and long-term. Business plan also develops the target levels of performance of the company and that is a regular review of the functioning of the company compared to them, with the possibility of annual bonuses for outstanding performance. Business planning process consists of a certain set of plans of plans, ideas, goals and objectives which are to be achieved in business. Business planning includes how we use business at your firm. These firms often had a specific list of business goals and objectives that were well-thought out and correlated with the ...