Strategic Planning in the Small Business

HO 2-5 (continued)

Unit 2

responsibility. The

organizational structure should

be consist­

ent with and

support the strategies

and objectives of the

busi­

ness.

If the business desires

flexibility of operations,

then an

informal

or open structural system

may be preferable.

The key

to evaluating

the structure

is to note if the business

and its

personnel

are restricted by the

demands of the structure,

or if

the structure

logically fits and

aids the fulfillment

of their

responsibilities.

Image

Evaluating the image

of the business

is clearly a difficult and

subjective task. Image

has both internal

and external ramifi­

cations.

That is, the image

of the business is

reflected through

its internal culture or climate

and thus, impacts

the personnel.

In addition,

the image is perceived

by those outside

the business

and affects

their attitudes toward

the business. As

with struc­

ture, the image

should be consistent

with the strategies

of the

business. If this

condition is present,

image emerges

as an im­

portant

strength. If

not, image can be

a restrictive weakness.

For example, if a business

wishes to stress

personal service as

a competitive

factor, then

it should present

an image reflecting

openness,

concern for workers,

communication,

and trust. If

quality is

being stressed, then

an image reflecting

skillful em­

ployees,

training and attention

to detail is valuable.

Image

evolves as the firm operates.

The public's perception

of image

is based on their historical

exposure to the

business.

Past mistakes,

missed deadlines, and

arrogant prior owners

may

all be to blame.

Clearly these perceptions

may not be the fault

of present owners,

and present conditions

may suggest an im­

age drastically differing

from the common

public view. If this

is the case, image must

be recognized as a

problem area and

efforts

undertaken to create

changes in the public's

perception

of image.

Changes tend to

be incremental in nature,

but can

occur.

One should remember

that image definitely

affects cus­

tomer attitudes

toward the business

and, in turn, their

buying

patterns.

ChapterTwo Internal

Analysis 81

224