Business Plan Issue Essay Example | Topics and Well Written Essays - 1000 words

Business Plan Issue - Essay Example A few years ago I did some consulting work for a family member that was starting a new company. The firm needed help creating an implementation plan on how to reach the commercialization phase for a new product the firm had developed. The company had already submitted a pre-patent application and the lawyers believed that that the chances of getting the patent approved was very high. Legal protection was one of the variables that were holding back the full launch. Another problem the company faced was a lack of capital. The company had been incorporated for over a year and half doing research and development without generating any revenues. A lack of operating cash led to the failure of the business. This company in its early stages needed a better implementation plan with a better timeframe and action plan. DQ3 The reason most risk management fall short of expectation is because they lack sufficient scope. A lot of managers do not have a clear understanding of all the business risks that can affect a company. For instances variables such as foreign exchange rate are not considered by many when in fact this variable can influence businesses that make many recurrent purchases of materials from foreign distributors. The risk profile of an industry changes and many managers do not keep up with current events sufficiently to realize the new risk variables may affect an industry. For instance the arrival of a wave of new green cars will adversely affect the production of pickup trucks and SUV automobiles. 4. The learning curve has many practical implications for the labor force of a business. Companies that establish themselves in an infant industry are not able to benefit from the virtues of the learning curve. On the other hand firms such as Coca-Cola have gained dominance in the market through years of experience that has enabled the firm to become an expert in the beverage industry. When a company is the first to enter a marketplace they can use that strategy as a tactical advantage to achieve higher market share. Resistance to change can slow down the employee adaption process to a new working environment. 5. I agree with you that planning on many occasions is a weak area on many firms. Not only do companies do not dedicate enough time and money into planning, they also fail to recognize that planning is not limited to the short term. Companies must develop strategic plans five to ten years into the future. I believe that Microsoft when it releases a new product already has the p lans ready for the next generation product that will replace the product that is being introduced. I also agree with you that high moral and ethical standards must be implemented into plans. Back in the late 1990’s a lack of ethics led to the Nike sweatshop fiasco. 6. The use of guidance should be followed to spread the use of strategic thinking within a corporation. Your statement about many firms formulating unrealistic vision statements is also true. Sometimes mission and vision statements are used as publicity acts. I would imagine that Enron had a positive mission statement that was obviously not followed by the corrupt executives of the company. Teamwork is a critical success factor in the business environment of the 21st century. Multi-national corporations must be run efficiently in order to maximize