Quiz 6: Planning, Organizing and Managing a Small Business

Business

Planning is the first step to perform a managerial function, future actions are based on the proper planning of the business. The owners of the business should look ahead to run the effective business, the future planning is important in every business. Planning is the process to set the objectives and actions in order to achieve the business goals. Planning is considered as the difficult activity which should be performed by the owners of the small business. Planning is important in business because the owner should know it clearly in which way he or she should go and how to achieve the company goals. The outsiders make investment in business and lend money to know the chances of success. Proper planning helps to provide the courses of action and information to other persons. Large number of small business owners neglect planning because they don't have enough time to do planning because of regular activities takes place in business. They may face some problems because planning may get reveal. The small owners don't have enough knowledge that how to do proper planning. The small owners have thinking that future is not in control and it can't get planned by anyone.

Planning is the first step to perform a managerial function, future actions are based on the proper planning of the business. Planning is the process to set the objectives and actions in order to achieve the business goals. The two categories of planning are as follows: Strategic planning It is the process where the leaders of the company can determine their vision of future and can identify the main goals and objectives of the company. In the strategic planning, proper sequence is made to achieve the goals of the company. Operational planning An operational planning is a detailed planning which shows the clear picture of the company that how a team and department perform their tasks to achieve the goals company goals. It helps to establish the budgets and activities for every part of the organization. The differences between the strategic planning and operational planning are as follows: Strategic planning The strategic planning is used for the total firm and in the functional area of the company. The mission of the strategic planning is to achieve the long-term business directions. Its main aim is to achieve the particular objectives by preparing the proper strategy. Operational planning The operational planning is used for some operations which should be completed by the company in a given particular time period. The policy of operational planning is to guide the actions which give proper consistency to make decisions, mainly in the same repeated situations. Its main aim is to achieve the future activities by using the control measures.

An operational planning is a detailed planning which shows the clear picture of the company. Operational planning gets start by setting the policies, methods and procedures, budgets, and standards which collectively form the basis for operational planning and methods. Policies Policies are considered as generic statements; it helps to provide a guide towards a specific strategy. It is a common method to understand, interpret and implement the strategies. The company make policies at all management level, from major policies to minor policies. The manager should form the policies to provide help to the employees as per the situation arise by providing them a good decision. Methods Methods means which shows the ways where some particular tasks procedure get performed. The methods are specific in nature with detailed instructions that how the employees should perform all the particular tasks. Methods play an important role in an organization. it helps to provide the instructions to the employees in order to remove the confusion. Procedures After planning, the organisations have to work on the Procedures. It contains proper step to carry out the activities. The employees should follow the proper steps in order to achieve the operations of the company. The company describe the procedures in a chronological order. Budgets A Budget means a statement which shows the expected results of company managers. These are known as quantitative statement and get viewed in a numbers and digits. Manager have to make different type of budgets and financial budget shows the profit of the company. The operational budgets are prepared by lower-level managers. Standards Standards means mandatary rules which helps to provide support to the policies and directions. Companies make different types of standards which provide relevant information to the employees. It is a time-consuming process. It provide help to the company to achieve the main goals and targets of the company.