This paper will explain the components necessary for developing a new business. Topics discussed will include mission and vision statements, SWOTT analysis, a balanced scorecard and a communication plan. The hypothetical new business, O'Russells restaurant will provide examples of how to integrate these components into comprehensive business plan. When properly completed, a business plan will give a total picture of the business and where it should go in the coming years.
Strategic Planning and Management in BusinessThe new business will be a neighborhood restaurant and bar called O'Russell's. The prospective owners and manager want to open a "neighborhood" style restaurant with citywide appeal. (The Commonwealth of Virginia does not allow bars only. Each establishment is required to have at least 51% of the sales come from food items.)Strategic management can be defined as an organized analysis of factors associated with internal (the organization) and external (competitors and customers) providing the basis for rethinking current management practices.
The purpose is to achieve better alignment of the strategic priorities and corporate policies"Strategic planning is a management tool . . . to help an organization do a better job - to focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Alliance for Nonprofit Management" (Alliance, 2004).
A strategic plan is important to a business because the plan is the best way to respond to circumstances found in the business' environment. The strategic plan needs to be clear about the business' objectives and being aware of the business'...