Strategic planning in small enterprises – a modern or a historical concept of management?
Journal Title: International Journal of Contemporary Management - Year 2012, Vol 11, Issue 4
Abstract
Neither controversial nor visionary is a view corporate governance in the twenty-first century had which is not significantly different from conditions in which organizations work now. Today's companies operate in times of great uncertainty, however, priorities, such as the need to dominate competitors and to ensure sustainable development of the company remain current. Multifaceted changes in the surrounding world has become obsolete for planning the future of the business. The paradox is that the more difficult to plan for the future, due to the unpredictable environment, the greater the importance of gaining knowledge about the changes occurring in the environment and the company. With the proper reading of market signals, it is possible to plan the development, which is the best preparation for the demands of the future. Implementation of strategic planning helps build the model's dynamic, flexible, risk-prone, and even capable of making controversial decisions, acting in an orderly and logical way despite the changes in the environment. The purpose of this paper is to answer the question of whether planning is still relevant and whether the strategic planning process can help small businesses survive and develop. The specificity of small businesses means that the planning process is less formal and more intuitive, the shorter time horizon of the strategy, the planning system simpler. Lack of formalized strategic planning means entrepreneurs mistakenly treat it as a response to the changing environment, which forces you to react quickly and prevents planning. This approach to planning changes with the growth and development of small businesses. In times of increasing competition small business planning usually refers to activities related to the expansion of business, using effective marketing or offering better products and services. These factors necessitate a more formalized approach to planning, on the other hand, the tendency to make the system of command-and-control management in the face of rapid and chaotic changes in the environment does not work. This leaves the search for optimal solutions by using a formal planning system helped by an open model of leadership.
Authors and Affiliations
Letycja Sołoducho-Pelc
Keywords
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