Business Planning Process
Effective business planning has to begin with a realistic appraisal of the business’ current situation. The formal term for this is ‘situational analysis’ and there are several planning tools and methods which are helpful in conducting this analysis. The true purpose of situational analysis is to determine which opportunities to pursue:
- Segmentation: Identify and analyse trends in the environment.
- Competitive Value Analysis: Understand and, if possible, predict the behaviour of competitors.
- Q-SWOT Analysis: Build on strengths; resolve weaknesses; exploit opportunities; confront threats.
Having determined the current position, the next step is to determine the direction of the business – by answering the question ‘where are we going’?
The outputs from asking this question are:
Vision: the non-specific directional and motivational guidance for the entire business.
What will the business be like in the intermittent future?
Mission Statement: a statement of the business’ reason for being.
The mission statement is concerned with the scope of the business and what distinguishes it from similar businesses.
Values: Values are the pillars of organisational culture.
Goals: Specific statements of anticipated results.