Question

Explain the difference between “business planning” and “business thinking”?  Explain the varied opinion on the importance of a business plan and/or a business model.

Answer 1

In practical terms strategic thinking will help to evaluate, examine, appreciate and identify a complex situation and then implement policy steps that will deliver the greatest possible positive impact toward a pre-defined goal, so it is justifiable to say that strategic planning is subordinate to strategic thinking. Strategic thinking is therefore essential, since it helps to build strategic plans. Strategic planning positions a company at a certain level based on the goals and possible positive improvements that it aims to accomplish. That is why most companies require managers and executives to have a strategic perspective, because this clearly sets them apart from those who think in a conventional way.

On the other hand, strategic planning is intended to operationalize the approaches built by strategic thinking that support the overall process of business planning. The method also envisages the future, but converts the vision into broadly defined expectations, goals, and a series of steps that explain how they can be accomplished. Strategic planning can be seen as the how, where, and who of the business planning process— a way of regularly doing and acting to evaluate, concentrate, and execute.

Business planning is a critical component of a productive company being developed, run and/or supported. Sadly, this role is ignored or neglected in many smaller businesses. Faced with time constraints, minimal resources and relentless competitive pressures, small business owners frequently realize the importance of business planning, but wait "until they have the opportunity" to do so. Business preparation, whether basic or complex, however, helps you handle your business efficiently and overcomes many market and operational challenges.

Know Consumers And Rivalry This is an important component which is classic win - win. Your business planning is vital to your success and getting to know your clients and the competition helps to make your plan work. Evaluating, assessing and knowing the competitors better than they know themselves, while considering your consumers ' preferences and their desires, allows you to achieve better business planning. Sharing your valuable knowledge of your customer base and competitive position lets you manage better and improves your funding or expenditure improvements when you need it.