Strategic Components In Integrated Business Planning
The traditional sales and operations planning process are not efficient to provide the desired results to the enterprise. Due to the globalization, every enterprise is facing tremendous competition and facing shrinkage of gross profit margins. The traditional sales and operations planning are not proficient in determining the best alignment of demand and supply.
Whereas, integrated business planning is an improved method that can help an organization to identify the profitable alternative to meet the customer demand. This helps an enterprise to maintain the profit-based balance of supply and demand. The integrated business planning is strictly focused on collaborative and outward to achieve the business objective of generating revenue and profit.
The strategic plan is a preparing an action plan and setting business objectives. It includes consideration of quantitative and qualitative tools and methods to establish the ambitious yet realistic company objectives. It also includes the analysis to recognize the strength, weakness and opportunities for the company.
The strategic business planning concludes what type of markets, products and products a company should pursue. Also, it helps to determine the prioritization of the business process to achieve the goal. The strategic plan helps administrators to establish a realistic image of the market condition.
In simple words, the strategic business plans help in establishing mission and vision of a company.
An operational plan is prepared in response to strategic plan. A business operational plan determines the rightful way to execute the strategic plan to achieve the objectives.
Typically, the operational plan is based on the realistic facts to execute the action plans. It also includes budgeting to determine the various finance issues such as investment, financing, divided, etc. The operation plan includes consideration of current market data, demand of target audience, and available resources to conclude the best method to execute the plan.
The operational plan sets a time-line and milestones to accomplish the objective in a righteous manner. Basically, operational plan provides the details of how the process should be carried out to get the desired result.
The monitoring system is an important component of integrated business planning, which determines the business performance. Monitoring system compares the performance of business processes with the operational business plan to conclude whether the plan is executed accurately or not.
Monitoring the business process helps to recognize if the business plan is effective to produce the desired result on time or not. The monitoring system also determines the internal policy and procedure to control the business process.
Moreover, monitoring system helps the administrator to conclude what improvement is required to enhance the productivity of the business. Overall, monitoring system highlights the positive and negative aspect of the business plan to consider in the future business planning.
A firm target is an essential component of the integrated business plan. Since, the success of the strategic plan, operational plan and monitoring system is completely based on the realistic firm targets.
The accurate integrated business planning helps a firm to accomplish the long-term plan. The integrated business planning helps to conclude a realistic target and effective plan to achieve the goal. Moreover, it also helps administrative to conclude the future perspective of their businesses.
A realistic firm target provides clear vision of company’s mission and long-term objective for the substantial growth. Consideration of long-term objective and company’s mission is essential to manage the business process in a profitable manner.