Business Planning and Control - Essay Example

These strategic options range from diversification to expansion (Bowhill, 2008). The business plan contains financial details of the operations of the company that the company will need in present as well as in the future. These financial details comprise ratio analysis and different strengths and weaknesses of the company in monetary terms (Parrino, 2012). Business plans are used by organizations to attract investors and even to obtain funds based on loans to pursue their strategic options.

Investors use this business plan to determine whether to invest money in the business and the lenders such as bank use these business plans to determine how successful the business will be in the future and whether the business will be able to pay off its loans in the future or not (DeThomas, 2008). Similarly, the investors make use of the business plan to identify whether they will gain profits from investing in the plan or whether the plan will fail and cause losses.