There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses.(b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing astrategic plan? (8 marks)
题目
There is considerable evidence that small firms are reluctant to carry out strategic planning in their businesses.
(b) What are the advantages and disadvantages for Gould and King Associates in creating and implementing a
strategic plan? (8 marks)
参考答案和解析
正确答案: (b) Clearly, there is a link between the ability to write a business plan and the willingness, or otherwise, of small firms to carry out strategic planning. Whilst writing a business plan may be a necessity in order to acquire financial support, there is much more question over the benefits to the existing small business, such as Gould and King, of carrying out strategic planning. One of the areas of greatest debate is whether carrying out strategic planning leads to improved performance. Equally contentious is whether the formal rational planning model is worthwhile or whether strategy is much more of an emergent process, with the firm responding to changes in its competitive environment. One source argues that small firms may be reluctant to create a strategic plan because of the time involved; small firms may find day-to-day survival and crisis management prevents them having the luxury of planning where they mean to be over the next few years. Secondly, strategic plans may also be viewed as too restricting, stopping the firm responding flexibly and quickly to opportunities and threats. Thirdly, many small firms may feel that they lack the necessary skills to carry out strategic planning. Strategic planning is seen as a ‘big’ firm process and inappropriate for small firms. Again, there is evidence to suggest that owner-managers are much less aware of strategic management tools such as SWOT, PESTEL and mission statements than their managers. Finally, owner-managers may be reluctant to involve others in the planning process, which would necessitate giving them access to key information about the business. Here there is an issue of the lack of trust and openness preventing the owner-manager developing and sharing a strategic plan. Many owner-managers may be quite happy to limit the size of the business to one which they can personally control. On the positive side there is evidence to show that a commitment to strategic planning results in speedier decision making, a better ability to introduce change and innovation and being good at managing change. This in turn results in better performance including higher rates of growth and profits, clear indicators of competitive advantage. If Gould and King arelooking to grow the business as suggested, this means some strategic planning will necessarily be involved
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