Objectives of Business Planning – Strategic and Operational Planning

In this tutorial, we will learn about the objectives of Business Planning. The main objective of business planning is to provide and implement a formal and systematic business plan.

The main objective of business planning is to provide and implement a formal and systematic business plan. The official business plan aims to be in a circle of contemporary business-standard formality and the requirements in the region where it operates. The aim of systematic planning is the effectiveness of a business plan that excels in reality, exercised or practiced by entrepreneurs.

Emergency planning is not a one-time event. Instead, it is a continual cycle of plan, exercising, training, and revision that takes place throughout the five phases of the emergency management cycle (preparedness, prevention, mitigation, response, and recovery).

The planning process does have one purposeā€”the development and maintenance of a current emergency operations plan.

An Emergency Operation Plan(EOP) can be defined as a document maintained by various jurisdictional levels describing the method for responding to a wide variety of potential hazards.

Formal and systematic planning must include the following two elements:

  • Strategic planning
  • Operational planning

Strategic Planning

A strategic plan formulates effective management concentrates on opportunities and threats in long-range plans. It defined the tests specific, measured, reasonable, reachable, time frame, exciting, and rewarding to the respective future business direction.

Strategic plans draw a clear layout to the specific business venture vision, missions, objectives, competencies, managerial abilities, technical proficiency, and sources of funds. Strategic planning includes strategic management which implements the following strategic processes:

Environmental Scanning:

It applies to both internal and external environments. External environment scanning accounts for the social environment and task environment; internal environment scanning includes structure, culture, and resources.

Strategy Formulation:

It is a detailing process in mission, objectives, strategies, and policies.

Strategy Implementation:

It is the process of conducting programs (activities needed to accomplish a plan) budgets and procedures.

Evaluation and Control:

It is to determine the performance, which is a process to monitor performance and take corrective action. It also revises the system in strategy implementation.

Operational Planning

Emergency operational planning defines how to operate in practice to implement action and monitoring plans, what capacity needs, how resources are to be used, how risks are to be dealt with, and how sustainability of the project’s achievement ensured.

Operational planning does not exist as one single standalone plan; instead, the key components are integrated with the other parts of the overall strategic plan. Well implemented strategic planning translates the strategy into the business’s common execution tactics that will ultimately produce the outcomes defined by the policy.

Operational planning is the conversion of strategic goals into managed executions. Superior operational planning requires proactive thinking to enact strategy within the functional layer of the business. The operational planning must produce the plan outcomes while managing constraints on time money and resources.