Essay On Importance Of Business Plan

INFLUENCE OF BUSINESS PLAN PREPARATION TO THETHE COMPEPITIVE ADVANTAGE OF THE ENTERPRISE

PhD Aleksandra Stoilkovska, Full Professor

PhD Natasha Ristovska, Assistant Professor

Enterprice management in modern conditions of work includes preparation and creation of a business plan, as an important document upon which the monitoring and the needs for changeable operation of the existing business or starting a new business is based.

The preparation of the business plan as well as its development and improvement is a strategy which the entrepreneur has to implement and realize, despite all the obstacles and deficiencies that may be encountered during operation. Quality developed business plan represents advantage in decision making related to taking

If once the following rule was applicable: “to be successful in business, it is crucial to possess a large capital” nowadays, the basic rule says that the “being a successful means being different”. In time of global crisis, companies faced the challenge of increasing their competitive position in the market. The offer of products is growing every day and the market space is too small for them all. Undoubtedly, those who carry out real strategic steps and implement sensible economic measures can easily find their place in the market. Success possess those with the latest ideas, the ones that change the old with new, more modern and more affordable.

OECD – The International Organization for Economic Cooperation and Development, defines competitiveness as the ability of companies, industries, regions and nations to be exposed to international competition and to provide a relatively high income and based on the production factors to create a relatively high employment rate on a permanent basis

Furthermore, in the European Commission's competition Report in 2003, the term competitiveness involves a high rise in the living standard of a nation with the lowest possible level of involuntary unemployment, on a sustainable basis. However, the economic theorists, support the definition that competentiveness is ability of an economy:

• To sell enough products and services to meet external constraints,

• To

Business Planning

The need to plan the activities of the company stems from the environment and its dynamics. The concept of business planning has its own evolutionary development. It has passed through many stages. Also more features that make up the nature of business planning can be emphasized. Above all, it is a mental activity of the managers, activity of thinking about the enterprise development.

The plan is a sketch, a means to achieve the goal and it specifies the required schedules, tasks, resource allocation, and certain other activities. The objectives specifiy the future ends, whereas the present plans specify the means. The word planning usually incorporate both ideas, it determines the organizational goals and defines ways or means of achieving them .

The planning process begins with a formal vision and mission that defines the current or the desired position of the company directly linked to all employees and especially directed to the external public. Vision is the basis for strategic (company level) level of goals and plans, in which the tactical form (at the upper sectors and functions) and the operational level (the level of departments, divisions) of goals and plans,are being created both named as Mission. Top managers are usually responsible for setting strategic goals and