The role of planning in business cannot be underestimated since it helps to prevent a range of negative outcomes from taking place. Specifically, business planning allows one to avoid an array of risks, including the ones associated with finance and the outcomes of their mismanagement when starting entrepreneurship (Ferreira et al., 2017). Overall, developing a business plan implies obtaining an immediate goal that is not bound to any specific task and, instead, represents the core of the business in question. In turn, creating a strategic business plan implies building a framework according to which the business will be run ad, therefore, is supposed to create premises for an impeccable performance. Moreover, the strategic planning implies that a specific business strategy should be developed by the time that the framework is launched so that it could be managed with the proposed instruments.
In turn, implementing a strategic business plan requires guiding an organization toward a specific strategic direction. As a rule, to craft a viable strategic plan, one needs to deploy the 5P framework, namely, “Plan, Ploy, Pattern, Position, and Perspective” (WenJun, 2019). The specified components allow building a cohesive, reasonable long-term strategy for managing an organization. Additionally, strategic vision must be incorporated into the development of a strategic plan as the means of guiding the leader toward the further management of corporate goals and promoting the development of an organization. Additionally, adding a vision and a value system to the framework based on which the organization will be run is vital to the creation of a strategic plan. Combined together, the specified components constitute the bulk of the system on which a company will rely when making essential business decisions.
References
Ferreira, A. D. S. M., Loiola, E., & Gondim, S. M. G. (2017). Motivations, business planning, and risk management: entrepreneurship among university students. RAI Revista de Administração e Inovação, 14(2), 140-150. Web.
WenJun, J. (2019). Reinterpretation of the strategic concept based on Mintzberg’s Strategic 5P Model. The Frontiers of Society, Science and Technology, 1(6), 30-33. Web.