Business problem analysis - Assignment Example

Introduction. Any business, big or small, needs strategic planning to ensure its survival and persistence in the competitive business environment. Such strategic planning is done using special spreadsheets in excel that have special provisions for entering the figures to produce easy-to-read outcomes. Managers, therefore, bear this responsibility of ensuring that the right figures and procedures are applied while entering the numbers so that the outcomes can reflect the true form of the business.

The manager, therefore, needs to be familiar with arithmetic formulae such as addition, subtraction, multiplication, and division. Body. An effective business plan should take factor in its calculations the costs, revenue, and flow of cash on a regular basis. This is used to calculate the business’s profitability or discover incidents of loss. Such a plan can be used to project future expenditure plans and guide managers’ decisions about such decisions. The task of understanding such accounting techniques should not be left solely to accountants as managers’ knowledge is critical.

Information on the business plans can be presented on a number of models in excel such as charts, graphs, tables, and other presentational formatting. These are further divided into sub-models such as frequency distributions, cumulative frequency distributions, scatter grams and time series distributions. Such presentations provide the selling points for one’s ideas, therefore, they have to be accurate and self-explanatory and simple to understand. The mode of presentation depends on the audience and channel of presentation to be used.

Conclusion. Business planning is a strategy that all managers need to learn. Basic accounting techniques are a requirement for all managers and they cannot afford to leave all the accounting to the accountants. Business planning is crucial for a business’s survival and sustenance as it elaborates the business’s future, making vivid aspects that have great impact on the business such as unforeseeable costs.Reference. Pinson, Linda., 2004. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing your Company’s Future.

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