Strategy and planning process in the Small Business and the Small & Middle Enterprises (SME) Sector

Type :

Presentation

Pages :

7 pages

Format :

.doc

Published date :

12/14/2006

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Summary :

 
 

Table of Contents Strategy and planning process in the Small Business and the Small & Middle Enterprises (SME) Sector
 Table of Contents

 
  1. Introduction
  2. The impacts of planning on the success of a strategy
  3. Attitude of owner-managers towards Planning
  4. The drawbacks of Planning
  5. How entrepreneurs actually formulate their strategy
  6. Conclusion
  7. References

Abstract

business planning is perceived by both governments and business support infrastructure, such as the business Links, to be an essential ingredient to the success of small businesses (Beaver, 2002, p88). Similarly, O'Gorman bases his idea on the fact that one approach to developing a successful strategy could be to engage in a formal planning process (2000, p291). Although planning is frequently used and implemented in large corporations, it relies on different means for coordination and control in smes, due to differences in scale. The extensive research on corporate strategy is not relevant for small businesses since they are more driven by new opportunities and strive to minimize their commitment to resources. (Stevenson and Gumpert, 1985, pp86-87).
This paper evaluates the statement of O'Gorman about the impact of planning on a successful strategy for small and medium-sized firms. Firstly, the notion of planning for smes in formulating their strategy will be analysed. In a second part, the paper will present the reasons why in reality owner managers of small businesses do not engage as formally as managers of large corporations in the planning process. Finally, the paper will evaluate the considerations presented to clarify the initial hypothesis.

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About the author :

pencil image PREETHI S. etudiante
Level :Expert Study : Management School/University : LONDON SCHOOL OF ECONOMICS