Before I discuss whether Strategic Planning is worthwhile for small firms or not, I would like to briefly explain what strategic planning is.
Various definitions of strategic planning have been offered in the literature. However, defining strategic planning remains a problem because it can be defined in many ways depending on the size and nature of the business. Planning does not seem to have clear definition of its own place in organisation. Strategic planning can be an intended course of action. Strategic planning can also be an approach to managing the organisation's future. Strategic planning merely formalises the strategy process in some organisations. The definition I will use is "A strategy is the pattern or plan that integrates an organisation's major goals, policies and action sequences into a cohesive whole" ( Mintzberg,H., Quinn , J.B and Ghoshal, S. (1998).
Whether the strategic planning is worthwhile and relevant for small firms is mainly dependent on the management style of the organisation, resources they have and up to date information they gain about the market and competitors.
If any small firm adopt the strategic plan, their action should be swift, efficient and controlled in order to achieve goals. Implementation must be secured by detailing the activities to be undertaken, giving responsibilities to managers and holding them accountable for achieving results.
There can be many benefits of applying strategic planning into small organisations. Strategic planning gives an organisation direction instead of letting it drift. Setting the goals and then choosing a strategy to achieve the goals can give a clear sense of direction to the small organisations. Strategic planning can also help to allocate the budget and to integrate all the activities which are involved in the planning process, which encourages small businesses in long term thinking and commitment. According to Miller and...