Planning is an essential part of creating a valuable business. It allows a company to focus on future objectives and identify the resources needed now to achieve that position in the future.
Planning
There are three aspects to planning:
Long-term Strategic: This is the long term intentions of a firm. It involves recognizing what and where the firm intends to be in the long term. For example the long-term strategy of a local food chain might be too have stores in every major city of America.
Tactical: Tactical planning follows on from long-term strategic planning. It is a set of plans relating to the implementation of a firms long-term strategic plan. For example, what locations should the firm build its stores, how many staff should it employ and how much advertising should it spend?
Operations budgeting: Involves creating a detailed plan for implementing tactical decisions and useful tests of their feasibility.