Planning And Operation Of A Business

The relationship between the planning and operation of a business is that the planning stage is the first stage and the operation stage is the last stage. Connecting these two significant steps there are various other steps which consist of marketing and research and the attainment of funds for the business. The plans are made up of short term, medium term and long term plans. The long-term plans are the general plans of the business. Note that when the short-term plans and the medium- term plans have been attained, the long-term or general plans would have been attained.

The short-term and medium-term plans are the development to the long-term plans. In the event the entrepreneur tries to accomplish long-term plans with no short-term and medium-term plans, he or she is expected to be unsuccessful in the accomplishment of such plans. With no appropriate planning, operation of any business is unsuccessful.

Entrepreneurs must carry on to plan in order to guarantee that operations meet all long – term, medium- term and short- term objectives.

Long- term plans establish the course or direction of the business. These plans are made for 3 to 5 year time frames. Such plans set out the firm’s general approach to move from its existing position to where it aims to be. Long-term plans comprise of development plans and plans to produce new goods and services.  These plans are made by the directors or persons in senior management positions of a business.

Medium-term plans are created by department managers or persons in middle management positions. These plans are from 1 to 2 years. Medium term plans consist of increasing the effectiveness of a department in order to enhance the worth and size of output. Hence one should put into action training programmes for staff and recognizing machinery that would improve effectiveness.

Short-term plans are created on a daily, weekly and monthly basis by supervisors or individuals in lower level management positions. Such plans embrace daily, weekly and monthly production aims.