The Rise of Formal Strategic Planning in Small and Medium Businesses
Historically, researchers concluded that the absence of formal strategic planning in small business, the fundamental significance of business environment awareness and that of strategy – the ability to make informed assessments of the consequences of any particular change – have been found to be crucial to the efficiency and survival and growth of small business (Gibb and Scott, 1985). This means that awareness of the environment which the company operates in, making timely strategic moves and most importantly, the awareness of the implications of their strategic actions are more important in small business than merely formalisation of their thinking and awareness. This may appear more naturally with some owner-managers. However, other inputs also influence the process.
A study by Gibbs and Scott (1985) reported that most owner-managers of small firms have ideas of projected action to benefit themselves of emerging opportunities and for dealing with threats that are beyond their control (determined through SWOT analysis). However, these ideas are not forthcoming unless prompted with the right questions. Therefore, these ideas become reactive and lose the positive impact that would otherwise be realised through a more proactive approach. Further, this generation of ideas is primarily characterised by changes. To read the full article, download the whitepaper for free.
Download our latest whitepaper for free. Simply sign-up to receive more free whitepapers, eBooks and other cool freebies and get this must-read whitepaper for free…