Strategic Planning in the Small Business

Unit 2

HO 2-4

(continued)

velopment

and restructuring

of their

firms to avail

themselves

of the

exporting

advantages

and opportunities

that

this act

offered.

Tax laws change,

affecting

the structure

and reporting

practices

of small

business.

Political pressures

within

a partic­

ular community

or trade

area may

affect not

only the general

business

climate,

but philosophies

toward

the promotion

of

small

business. These

and any

number of

other political

or legal

concerns

must

be addressed.

Local

newspapers,

Chamber

of Commerce

reports,

trade

publications,

and general

business publications

(such

as .Business

Week

and The Wall

StreetJournal),

are important

informational

sources. By reae.,ng

about

and remaining

current

on impending

developments,

the small business

person

can maintain

a reason­

ably accurate

appraisal of

political and

legal trends,

and possess

enough

information

to seek

out appropriate

professionals

who

can offer

more specific

guidance

when necessary.

Social and
Demographic
Changes

Social and

demographic

factors (such

as age

and sex distri­

bution),

are important,

particularly,

if they indicate

developing

trends.

Consider

the following

example.

A local restaurant

has

been experiencing

a marked decline

in their

business

and is

quite

uncertain as

to the underlying

reasons

for this condition.

They

provide

a friendly atmosphere,

a fairly broad

arid diverse

menu, and

personalized

service

by friendly

waiters :'nd

wait­

resses. They

stress and

have built

the- business

for years

on

the home-cooking

theme; as an

order is placed,

the cooks

(who

are

the owners),

prepare each

entre with

that special

touch.

The

business

has existed

on the same

corner for

over twenty

years and yet

recently

(over the past

five years) the

owners have

experienced

a major

decline in

clientel. Although

many

factors

may

help explain

the plight

of this firm,

demographics

and

social

i'actors

should be emphasized.

The

United

States is experiencing

some

critical

shifts in

the dining-out

experience.

Much of

this shift can

be explained

by social

and demographic

changes.

First, there

are more

two­

career

families which

explains the

increased

need or desire

for

Ci..2ter

One Environmental

Analysis

27

170