Abstract
Most aspects of strategic planning are well known and widely documented. Virtually all large organizations use a formal strategic planning process. While the benefits from effective strategic planning are evident to most businesses, small business owners/managers often plan poorly. Many contend that the daily demand of running their businesses reduces their time available for effective strategic planning. Since strategic planning drives the allocation of resources (time and personnel), it is practiced in every organization – large and small. The strategic planning decisions (allocations) may be well-thought-out based on a detailed plan or they may be haphazard. But without exception, strategic decisions are made and implemented by all organizations.
This paper has four sections: First, it very briefly summarizes strategic planning principles; second, it describes the theoretical benefits of strategic planning for all organizations; third, it reports on two cases that describe strategic planning practices in small businesses – one success and one failure; and, finally, it provides recommendations for the practical application of strategic planning principles for small businesses.