Planning plays a vital role to make business successful. It helps to plan the whole business before starting and can predict the future challenges and the requirements which needs should be fulfilled to achieve the final goal. There are different types of planning which we need at different stages like strategic and operational planning.
- To analyse the planning and roles of planning in business
- To differentiate between strategic and operational planning
Planning is the techniques which are being used for the project management and time management. Planning is the preparation of series of actions which could be needed to achieve some defined goal. Planning helps to reduce the time, efforts, energy, investment cost and over all input of any procedure. Most important factor in the planning is that it works like a map.
A business plan is a document designed enough information about a new or subsisting business to convince financial supporters to invest in the business.
[Business Studies By Ian Marcouse, Published in September 1999 by Hodder & Stoughton]
One other very important factor of planning is the 80/20 rule. It means that for any business which is not structured, not managed gives you just 20 percent of the output in the result of 80 percent input. so it's better to spend some time on deciding what to do next in rather than taking wrong ways or unfocused and inefficient steps.
Importance of Business planning
Every Business whether new or based, large or small needs a plan for the future. The capacities of the business will change enormously depending upon the type of business the expertise plan is of the enterpriser, who the plan is directed and how much time is spent researching the plan.
Through the business planning we can get maximum profit in our business.
[Business Studies By Ian Marcouse, Published in September 1999 by Hodder & Stoughton]
Impacts of Planning on Business Operations
The Operation section of the business plan normally comes before the financial year, But after the management section. The intention of the operations plan is to identify where above of the business means where apportion the business is along with any physical requirements and how to provide products or services for the customers.
Operation targets are the managerially goals. Operation Scheme is the plan by which these goals are to be reached. For example in any company booked in production the management of its operations will be fundamental key to its level of success. The key to Success consists in any attending two factors within the broader circumstances of the business as a whole.
In special as exemplified in figure 1 the degree of success of the form will have in attending
Quality and flexibility will be influenced by an image of organizational factors.
- Organizational Objectives
- Organizational Strategies
- Human Resource management
- Decision making
The following are the Different types of Business plan
Business planning is known as with different names like strategic plans, expansion plans, annual plans , internal plans , feasibility plans. These are the plans which one business need for its growth and furbishment. There are two main plans of the business internal or external and it totally depend on the situation what type of plan you want in specific time. For instance if you are making a plan for your internal business there is no need to include the background details that one already knows. There are different things which can be useful for different entities like management team description is very important for investor and financial history is important entity for bank.
- Internal Plan
- Operational plan
- Strategic plan
- Growth plan
- Feasibility plan
Planning helps those to deem how a task will be carried out to see that client demands are met cost effectively. One way to get this by using network analysis to show the order in which actions must be attempted then by naming. The critical path it is possible to show which actions take the most careful management examination. Operational management requires many conditions including location quality stock control and information technology. Business Studies
By Ian Marcouse, Published in September 1999 by Hodder & StoughtonExample
There are different behaviours in work environment. Mostly people start their business which based on their hobbies or what they love to do. Not Jack Bock. This idea comes from when someone bought flat pack tables and he was trying to find someone to screwed it up but no one was able to give him price. So idea of self assembly furniture was launched. A proper survey was being done to get the response from the customers. And got a good response from market specially it was very helpful when some wanted to get quote from any screw driver as it was easy to see the which was already provided in paper form for differently designed models. So it was very easy just to see and asses the required work and quote so in 1998 jack Bocks business was receiving between 75 and 100 orders per week. They achieved more than the required targets.
Strategic planning is the work of projecting a series of steps or activities which will be taken in order to gain a specific objective. Capture physical and human resources must be put in place to reserve the plan to be implemented . Tragic planning specially require at a time of change.
ExampleMacDonald's Plots strategic plans
MacDonald's has own tragic plan to attain both cost and value leadership. First the company describe the change in life styles which encourage more people to use fast food restaurants through careful furthermost a brand image was made allowing differentiation of its products with competitors this added value changing higher prices to be charged. The profit allowed us generate high sales effective techniques were prepared in order to bring down costs will maintaining different initiated products build up with twin benefit of cost and value leadership MacDonald's achieved to become one of the world's valuable brand .
Mr Morison bought a private school of English. All the administrative work was being done manually in office and this was the main reason for selling the school. Mr Morison called all manager and did one meeting and conclude that the main reason for the drop down was nothing is managed properly and there is no planning involved in the whole administration. As a result many of the school record files are missed. So they decided to buy a proper database software and higher two persons to manage the Records and all the work properly. They did many other decisions to support their work. In this way they apply some rules of Business planning in their small organization. And after one year School got the 3rd rank in the Schools of the town.
Difference between Operational and Strategic planning
In Strategic planning it is a long term plan or we can say that it is a long process on a specific goal. Strategic planning require that the series of action which the organization designed to make a structure. For example the policy of human recourses must agree that for production compasityt or newer technology. In tragic planning if a firm wants to increase their business by the use of new technology so it is required all the staff should have knowledge about the product or to trained them. Every action in the plan must lead each another step to make sure that the organization reaches its targets. In tragic plans if a company wants to launch a new product in the market they must analyse whether it is better for the future or not secondly should us operation internally or externally.
In Operational planning is a short term plan or we can say that it shows how strategic plan will work in the future it only takes in the start but it is very important for the business and operation plan for the basic for the justification of an annual operation budget. Operation planning is a first key to success in a business.
Planning is the important part to start and run the business successfully. It covers many future risks and gives the pre plan ideas to proceed further in different stages of success in business. It helps to compete the market as well. Strategic and Operational planning are two different kinds of planning's. Strategic planning is long term planning covers step by step process throughout the business whether Operational planning is just short term planning to predict the future outcomes.
- Business Studies By Ian Marcouse, Published in September 1999 by Hodder & Stoughton
- Business Plan (Mike P. McKeever)