The Business Planning Process - Essay Example

?The ment given by Stutley explains the process of business planning as an activity which requires the joint collaboration and efforts of every component of the organization. Every plan needs a leader to ensure its smooth execution similarly the process of business planning requires a figure head to lead the entire process. The person to lead the process depends upon the scope which the plan encompasses i.e. whether the plan encompasses the business as a whole or is limited to the scope of certain departments. In case of business plan the process is lead by the head of business which in most cases in the Chief executive officer of the business who will ensure that the plan will address the entire scope of the business and will be made keeping in mind all the activities and processes of the business as in the end its mainly the decision of the business head or the departmental heading depending upon the scope of the plan to decide whether to go ahead with its execution of not. For formation of a successful business plan all the internal key players of the organization should be involved. Their suggestions and ideas should be valued by the top level management and the business head’ as they are more involved in the on field tasks and can give an insight of on field operations. Also all the core components of the business i.e. all the departments of the business should be actively involved in the business process of planning as they specialize in their respective departments. They know what their strengths and weaknesses are and through this the business can extract its strengths and weaknesses as a whole. By consulting and getting a vote of majority on which goals and objectives to pursue the business functions as a whole and the departments will make efforts for achievement of these goals and objectives later on in the execution stage as they were involved in the planning process and their opinions and suggestions were valued. As most of the business plans in the industry which have been successful had the inclusion of the internal stakeholders of the business in the planning process this indicates that the claim made by Stutley was quite true in the sense that if in the start all the internal key players of business from the start are involved in the business activities , this makes a sense of ownership and loyalty prevail amongst the members of the organization and each player feels as an important member of the business hence working for the good of business is taken up as a responsibility by the members of the organization which is quite necessary for business to expand and succeed. A business plan in simple words can be stated as those set of activities or the line of action which is needed to be followed or taken by an organization or a corporation to identify its goals and objectives. It can be termed as the backbone of firm’s business i.e. it guides the company or the organization to the right path so as to adhere to its vision and stay put on its mission along with catering to the organization’s need for arrangement of resources and have certain contingency measures available at all times in case of problems and troublesome situations. For many people there is a certain misconception that a business plan is formed only while starting the business as it indentifies the short and long term objectives the business wants to achieve over a period of time. That is a structured presentation of business goals and objectives, along with the inclusion of financial statements through which business can approach investors for investments and loans. But in reality a business plan is a framework for running the business and according to certain situations or scenarios faced , the plan can be changed and new additions or modifications can be made in the original plan later on in to business. Not everything can be included in the business plan from the start as you cannot perfectly predict how much investment and resources will be required and how will the market trends change or shift from time to time , these factors can only be worked on upon with the passage of time and will lead to addition or modification of plans according to importance of activities. Also it includes the formation of core components of business and the management teams that will lead and head various functional units of the business for the achievement and accomplishment of the goals defined in the plan. Business planning process includes those set of activities or steps which you take while formulating or creating a business plan. The process is really important as the main purpose of business plan is the identification of goals and objectives both short and long term which the business will pursue. Hence if the business planning process is hindered or not considered seriously then your end product i.e. the business can lack at many places and can result in failure of the business in the long run. Now the main benefit of considering and giving importance to the business planning process is that it makes the chief officer or the figurehead of business takes a more holistic approach of his business giving consideration and opportunity to every key player of the business. Conclusion We can conclude that a Business Plan encompasses the business planning process. Though the business plan is an outcome of the business planning process and business plan is dependent on the business planning process for its successful production. The business planning process should be given the same level of importance as is given to its outcome i.e. the Business plan because the success of businesses depend on how strategically achievable its business plan is and for that the process of business planning should be flawless and should be monitored throughout by the figurehead and the key players concerned to the business. References  ALAN GLEESON. 2007. The Business Plan Process. [ONLINE] Available at:http://articles.bplans.co.uk/writing-a-business-plan/business-plan-process/1015. [Accessed -] tutor2u. 2007. Business planning Process. [ONLINE] Available at:http://tutor2u.net/business/strategy/business-planning-process.html. [Accessed -]. Tim Berry. 2009. What is a business plan ?. [ONLINE] Available at: http://articles.bplans.com/writing-a-business-plan/what-is-a-business-plan/33. [Accessed -]. Business Plan Success. 2010. Definition of a Business Plan: What is the purpose of a business plan? . [ONLINE] Available at: http://www.business-plan-success.com/articles/business-plan-definition.php. [Accessed -]. Read More