ADMS 3920 Lecture Notes - Lecture 2: Income Statement, Swot Analysis, Financial Statement
17 Dec 2016
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Chapter 5 developing an effective business plan. Outsiders: customers, suppliers, investors, bankers or other lenders. Preferences of the management team: the amount of planning also depends on the management teams personal preferences. Some management teams want to participate in the planning process, others do not. Lack of interest on the part of management is likely to lead to insufficient planning. Complexity of the business: the level of complexity of a business affects how much planning is appropriate. Competitive environment: if the firm will be operating in a highly competitive environment, where it must be scrupulously managed in order to survive a significant amount of planning will be needed. Level of uncertainty: ideally, ventures facing a volatile, rapidly changing environment would prepare for all eventualities through extensive planning. In reality, however, entrepreneurs are more inclined to plan when there is less uncertainty because they can better anticipate future events.
