SME OWNER/MANAGERS RARELY PRACTICE STRATEGIC PLANNING

SME owner/managers rarely practice strategic planning



SME owner/managers rarely practice strategic planning

Various definitions of strategic planning will be offered in the literature. However, the definition of strategic planning remains a problem because it can be defined in many ways depending on the size and nature of business. Planning does not seem to have a clear sense of his own place in the organization. Strategic planning can be an action plan expected. Strategic planning can also be an approach to future management of the organization. Strategic planning process simply formalizes the strategy of their organizations. The definition I use is "strategy is the pattern or plan that integrates the main purpose of an organization, policies and action sequences into a coherent whole" (Mintzberg, H., Quinn JB and Ghoshal, S. (1998).

Whether it be strategic planning is useful and relevant for small firms depends largely on the management style of the organization, available resources and current information they get in the market and competitors.

There can be many benefits from the implementation of strategic planning in small organizations. Strategic planning provides direction to the organization rather than drift. Setting goals and choosing a strategy for achieving these goals can provide a clear direction for smaller organizations. Strategic planning can also help spread the budget and integrate all activities involved in the planning process, encouraging small businesses in the long-term thinking and commitment.

According to Miller and Cardinal (1994, p.1650), a simple functional planning model suggests that "the value of the company's strategic planning leads to positive affect its financial performance" (Desai, 2000, p 687). Strategic planning can help (depending on size of company) in identifying threats and opportunities for future commercialization. This can provide an objective view of management problems and promote futures thinking within the enterprise. In other words, ...