MANAGEMENT

Business Planning Process - A Critique

Table of Contents

Business Planning1

Purpose of Business Plan2

Components of Business Planning3

Creating a Vision, Mission and Objectives4

Mission and Vision Statement4

Objectives and Goals5

Situational Analysis6

Internal Analysis7

SWOT Analysis7

TOWS Analysis8

Competitive Analysis9

Market and Marketing Mix Analysis10

Management Analysis11

External Analysis11

Porter 5 Forces Analysis12

PESTLE Analysis14

Strategic Management Process15

Formulations of Strategies15

Implementations16

Comparing Strategic Logics and Implications18

Evaluation and Concurrency of the Plan18

References20

Business Planning Process - A Critique

Business Planning

Strategic planning for the business launch is considered as the most vital step in the formulation of planning techniques, that plays a vital part in the long term success of business. The strategic plan for business is important for all types of new and ongoing businesses, as it boosts the success rate for the life of business.

There are various definitions and explanations presented on the topic of business plan or planning a strategic business plan. A business plan can be defined as the formal statement or the formal analysis of the business goals. It contains all the necessary information regarding the implementation of the lucrative business strategy. It is a special document, that specifies in the written form, a clear business objective that a person wish to starts. This document is universally supported by additional documents such as market research, technical, financial and organizational.

These documents analysis contains the description about marketing channels, pricing, distribution, business model, engineering, location, organization of the organization, capital structure, financial evaluation, sources of funding, necessary personnel along with their method of selection, the philosophy of the company, legal aspects, and its exit plan.

In general terms, the business plan is defined as living business documents, through which a thriving business can be started with respect to the fulfilment of all situations and conditions. A reasonable business plan that justifies the expectations of the company's success is critical to get financing and venture capitalists.

Purpose of Business Plan

Having a formal business plan provides various advantages for the proper functioning of any organization. All the advantages and befits are embedded in the proper implementation and follow up plans. Given the complexity and dynamics of current markets, no company can grow and compete regardless of the variables involved and make a comprehensive analysis see if the venture is feasible or not.

The only default a business plan can have is the lack of the situation or environmental analysis or any minor thing that may have an influence over the business plan. Business plan, on the other hand, provides an organization with an opportunity to;

Provides clear and descriptive internal and external analysis for business;

Contributes to activities arranged and purposeful;

Determines the changes needed;

Provides the need for the type of control on all types of operations within and outside the organization;

The important thing to take in consideration here is that all types of business have kinds of risk associated to it. A business without a risk is no business. Planning process helps out to minimize the consequences of business or some time a proper planning helps to erode the complete faults or risk that a business may have.

Planning helps to solve a number of problems that small ...