Strategic Planning in the Small Business

Characteristic

Who does it?

Whose needs

are met?

Nature of
goals?

Planning horizon?

Rigidity of plan

Who has
input into the plan?

Who makes
strategic decisions?

Plans
based on?

Culture
for planning?

Financial
control?

COMMUNIST

VERSUS FREE

MARKET PLANNING

Communist/Socialist

Free Market

Government -by levels

Business owner

Government

• the people (?)
  Customer

Often unrealistic

Realistic

5-10 years

1-3 years

Very rigid

Flexible -targets

only

Government

officials only

All levels

of the rum

One

person at each level

All

owners

Based

on past performance

with a few Future

needs of customers

percent

added

Conform

to rules and

regulations Take

risks and be flexible

Focus

on meeting production

goals - Cost

control and pricing

decisions

cost

control and pricing

decisions not are

critical

critica!