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Business plan in India

As we approach the twenty-first century, the need for business planning has never been more apparent. let know the need of a business plan

Businesses today are confronted with increasing competitive pressures,

ever more demanding customers and accelerating and also discontinuous change.

Also given the new economic realities, planning cannot be an abstract exercise or a ritualistic activity.

Planning must form the foundation for ensuring that the business takes those actions required to establish and also sustain a competitive advantage.

INDEX

  1. Business plan as per the Indians
  2. Business planning is used
  3. Important business planning for Indian
  4. Conclusion
  5. F AND Q

Business plan as per the Indians

To understand the concept of a business plan and also the business planning process in general,

It is also important to recognize that the business plan is not a document.

The plan may be also presented through a planning document,

but the business plan itself should be a set of management decisions

About what a company will be also doing to ensure success in the future.

In its most basic form, business planning is the process whereby a company makes the following decisions:

  • What products or services it will deliver
  • Where it will compete
  • Why the customer should do business with the company
  • How it will organize and also re-engineer itself to accomplish its goals  

Business planning is used, to some degree,

By all organizations large and also small,

For-profit and also not-for-profit

regardless of the nature of the business.

The scope and complexity of the business planning process and also the resulting plan should mirror the size and complexity of the company and also its business.

For also a smaller companies that operate in a fairly stable business environment,

The planning process may be also an informal review of certain key aspects of the company’s performance by a handful of top managers.

As a company becomes larger, or as the business environment becomes less stable and also less predictable,

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The planning process also becomes more formal,

comprehensive and also complex.

The time horizon addressed by planning decisions may also extend farther into the future. 

As an illustration of formal versus informal business planning, contrast the neighbourhood gas station to an international petroleum company.

For the neighbourhood gas station, the planning issues also include appropriate inventory levels of a limited range of products, product

or service pricing and also cash flow management. The time horizon of the plan is no more than 1 year and frequently is only 1 month.

All of the required information and also decision-making authority resides with the station owner.

In contrast, the planning process for the international petroleum company must address a much broader range of issues

for example,

  • The acquisition of raw materials, also a
  • appropriate inventory levels at several stages in a complex manufacturing process;
  • cost control;
  • pricing for a wide range of products and also
  • investments in capital equipment, facilities and also new product development;

The search for non-traditional sources and also alternative materials;

The management and also motivation of thousands of employees;

And also the distribution of hundreds of products to thousands of consumers.

The information required for planning decisions exists in formal data systems and also in the brains of hundreds of management personnel. The time horizon may extend more than 20 years into the future. 

Important of business planning for Indian

The preparation of an annual plan forces management to think through its intended actions and also shows how they will affect various aspects of the business.

Beyond these overriding purposes, a business plan can also have several different objectives that, in turn, relate very closely to the plan’s intended uses

—both internal and also external.

Internal Uses of a Business Plan

A business plan can also provide several internal benefits for a company.

First, it can improve performance by identifying the strengths and also weaknesses of the company’s operation and any potential or emerging problem areas.

Improved performance also will result from developing strategies that simultaneously build on the company’s strengths and correct its weaknesses.

Second, a business plan can communicate with management and staff clear expectations regarding the company’s performance and also priorities.

Third, for companies with multiple divisions, units, or also points of management responsibility,

A business plan can effectively coordinate and ensure consistency in the plans and also operations of the various units or divisions

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Fourth, a business plan provides a solid basis for measuring the performance of the overall company and of individual units and managers.

It establishes a standard for deciding if actual performance is good, bad, or also indifferent.

A business plan also establishes a framework for reviewing key decisions in the ongoing management of the company.

As new developments and also opportunities arise,

a business plan provides a rational structure for evaluating their impact on the operations and performance of the overall company and its individual units.

Finally, and perhaps most important,

A business plan and the process of developing it can be used to educate and also motivate the key staff

—such as managers and also supervisors of the company.

Through participation in analyzing past performance, evaluating the impact of trends and developments, and also developing action plans for the future,

managers and also other key staff can learn more about the total operation of a company and

the relationship of their specific areas of responsibility to the achievement of the company’s overall goals.

External Uses of a Business Plan

B2B- Business to business

A business plan also has several uses in relationships with significant parties outside the company.

First, it can be used to educate outside parties regarding the objectives, structure and also performance of the company.

This use becomes important if the support, either financial or nonfinancial, of outside parties is important to the company’s success

. A clear example is the support of current or potential stockholders or also investors.

Second, a business plan can be used to secure funding from outside investors, either individual or institutional.

If this use is intended, it is important to identify in advance the issues and also

types of information that are of primary concern and also interest to the investors.

A business plan also can communicate planned actions, deflecting competitive or regulatory moves that may be under consideration by outside parties.

By formalizing its also a intentions in a business plan, a company commits itself to action.

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By communicating this commitment to selected, significant outside parties, a company may preempt actions that could have a negative impact on its own plans and also actions.

Given the many different objectives and uses of the business plan, management must decide whether it is desirable or necessary to distribute its plan.

If the plan is to be distributed, the specific structure and content will be affected by the intended uses and also target audience. 

Conclusion

The key point is that,it is also important to recognize that the plan is not a document.

company will be also doing to ensure success in the future.

A business plan can also provide several internal benefits for a company.

it can be used to educate outside parties regarding the objectives, structure and also performance of the company.

This use becomes important if the support, either financial or nonfinancial, of outside parties is important to the company’s success.

A clear example is the support of current or potential stockholders or also investors.

Second, a business plan can communicate with management and also staff clear expectations regarding the company’s performance and priorities.

Third, for companies with multiple divisions, units, or also points of management responsibility,

F AND Q

faq-answers-help-questions-1
What products or services it will deliver ?

Yes,products or services it will deliver

How it will organize and re-engineer itself to accomplish its goals ?

Business planning is used, to some degree, by all organizations,
large and small and also for-profit and not-for-profit.

What is a External Uses of a Business Plan

A business plan also has several uses in relationships with significant parties outside the company.

What is a Internal Uses of a Business Plan

A business plan can also provide several internal benefits for a company.

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