Question

Identify the different types of plans commonly used in the business context. Using examples from any published news sources, when each type of plan be most effective to use?

250 or less

Answer 1

A business plan is a formal written document that has a business purpose, a strategy for achieving these goals and the time that these goals are achieved. It also describes the nature of the business, basic information about the organization, financial forecasts of the organization, and the strategies it intends to implement to achieve the goals set. This document is a roadmap that provides guidance for businesses.

A written business plan is often required to obtain bank loans or other types of financing.


A business plan can focus on internal or external. Exterior Focused Projects Target projects that are important to external stakeholders, especially financially. These plans usually contain details about the organization or group that works to achieve their goals. For profit entities, external stakeholders include investors and clients for non-profit organizations, external stakeholders, donors and clients for government agencies, external stakeholders are taxpayers, high-level government agencies and institutions. International credit such as the International Monetary Fund. The World Bank, United Nations Economic Agencies, and the Development Bank.

An internal business plan focuses on the intermediate goals needed to achieve external goals. These could include product development, new services, IT systems, financial restructuring, plant renovations, or organizational restructuring. An interior-focused business plan is often created together with a balanced scoreboard or list of key success factors. This allows measuring the success of plans using non-financial measures.

Business plans that identify and guide internal goals, but only provide general guidance on how they will be called strategic plans.

The operational plan describes the purpose of the internal organization, team or department. Project planning, sometimes known as a project framework, describes the purpose of a specific project. They can also address the location of the project within the organization's larger strategic goals.

For example, a non-profit business plan may discuss the relationship between a business plan and an organization's mission. Banks are very worried about the default, so the bank's loan business plan will make a compelling case for the organization's ability to repay the loan. The venture capitalists are primarily concerned with valuations, investments, feasibility, and initial results. A business plan for a stock project will need to explain why current resources, future growth opportunities, and sustainable competitive advantage will result in a higher valuation of results.