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Evaluate how two different types of planning contribute to the success of a business or community enterprise - Leaving Cert Business - Question B - 2004
Question B
Evaluate how two different types of planning contribute to the success of a business or community enterprise. Use examples in your answer.
Worked Solution & Example Answer:Evaluate how two different types of planning contribute to the success of a business or community enterprise - Leaving Cert Business - Question B - 2004
Step 1
Strategic Planning
Answer
Strategic planning is a long-term process that outlines an organization's goals and the means to achieve them. It typically spans five years or more, ensuring focused direction towards future growth.
For example, a community enterprise focused on renewable energy might develop a strategic plan that includes expanding its services to urban areas within the next five years. This plan sets clear objectives and allocates resources effectively, ensuring that all stakeholders understand the enterprise’s vision for the future. It also helps in risk assessment and minimizes uncertainties related to market dynamics.
Moreover, consistent evaluation allows the enterprise to adjust its trajectory based on changes in technology and customer needs, thereby ensuring relevancy and sustainability.
Step 2
Operational Planning
Answer
Operational planning involves defining short-term goals and the day-to-day activities needed to achieve them, usually within a year or less. This type of planning is critical to the efficacy and execution of strategic objectives.
A practical example would be a local bakery developing an operational plan that includes procurement schedules, staff shifts, and inventory management for the upcoming quarter. This plan ensures that every aspect of the daily operations aligns with the broader strategic goals, such as improving customer service and increasing production volume.
By focusing on the specific, actionable steps required daily, operational planning makes it possible to execute the larger strategic vision effectively, ensuring that the community enterprise operates smoothly and meets customer expectations.