Critical Appraisal of Business Planning Process Essay - 2

captious Appraisal of Business Planning Process - Essay ExampleIt is evidently clear from the discussion that away market conditions change rapidly in certain industries, thus driving a need for revolution in order to compete with other businesses operating in the same market environment. Products and services two from an entrepreneurial business and the competitive environment have a specific life cycle by which it generates profitability and consumer adoption patterns. A product or service will move from growth to maturity, a period where sales decline and thus new product development becomes a critical innate activity of the organization. This is why generating new ideas becomes a paramount objective in the planning process, usually requiring the stimulus of executive leadership and managers to determine how best to introduce a new product whilst still recognizing cost. In generating new product ideas, the business leaders must determine whether compromises will be made, opp ortunity costs or trade-offs, in order to launch a new product or service on the market. Will conventional wisdom be defied, an understanding that teams, plans and reflects on learning lead to reduced cost, venture and speed to market?. Recognising the financial impact of new product development and market launch indispensability must be considered when generating new ideas. Innovations, however, are critical to maintaining a stable market position.Strategy formulation determines the objectives inevitable to achieve a long-term market position. The strategy defines sustainability over the long-run or whether growth is an scene related to revenue-building. An entrepreneurial dimension of strategy is persisting to find a better fit in the competitive market or developing a vision by which the organization founds its values and organisational structure against. Developing a long-term orientation is necessary for business planning as it determines the strategical direction the busin ess intends to pursue and thus resources are allocated toward meeting this purpose.