Question

Strategic planning is a process of the organization journey of success. Discuss this sentence and explain the reasons that entrepreneurs fail?

Answer 1

Strategic planning plays a major role in the success of an organization. Below are some of the ways through which an organization may succeed through proper strategic planning.

Explanation:

1. A proper strategic plan helps in identifying the firm's strengths and weaknesses helping the organization minimize possible risks through the identified business strengths.

2. It also aids in increasing productivity since employees are informed of the company goals and objectives hence work hard towards achieving the set goals.

3. It helps in setting the business direction providing the business with a framework on how to advance its operations to grow over the years.

4. A proper strategic plan ensures that there is effective communication in the organization as the different departments communicate the specific roles that needed to perform based on the agendas.

5. Ideal for sustainability purposes and also ensuring that the company is more focusing on long term goals.

b) The reason why the entrepreneurs fail is

Failure to set out attainable business objectives and goals that guide the business operations. If there are no set objectives and goals of the company then the company would not have a direction

Lack of focus on the company’s objectives and goals

Lose of focus on the business objectives and goals keeps the company out of track and therefore all operations are not geared towards the growth of the company.

Lack or poor marketing efforts

Because of the high competition in every market segment and therefore failure to market the business products means a business failure.

Poor financial management

If the procedures are not right to manage the business finances then the business would easily engage in unnecessary expenditures which would later leave the company bankrupt

Lacking strategic planning

If strategic planning is lacking then it can also lead to failure since the business lacks a proper direction and an effective idea on how to run its operations.