Production planning is an integral part of enterprise management. It can be defined as the ability to anticipate the goals and the results of operations of the economic entity (enterprise) and determine the resources needed to achieve specific goals.
Any production plan must be built on the basis of a number of scientific principles. These principles understand the basic theoretical principles that guide the company, its employees in the planning process. They determine the direction and specific content of the planned work at the company.
The principle need of planning means widespread and mandatory use of when performing any type of work, since its absence is accompanied by incorrect manoeuvre; late change of orientation, which is the reason for the bad condition or failure of the business.
The principle of continuity is that, first, planning for the enterprise should be carried out continuously, without interruption, and, second, what plans should organically come to replace each other. In particular, medium-and long-term plans should be systematically reviewed and adjusted to take account of changed circumstances, and annual plans must be coherent, i.e. flow of medium-term plans. Continue reading
Small business located in the heart of the modern society, affects the lives of the entire population. Few sectors of the economy could function without his endless stream of products and services. And most importantly, its activity initiates inventive and innovative activities: studies show that the main ideas and inventions often come from small than from large enterprises. The creativity of small businesses will contribute to the dissemination of new products and services for consumers.
Of the 19 million businesses in the United States 99% can be attributed to small, i.e., each of them employ fewer than 500 people. About 600 thousand new enterprises are created every year, but half of them terminates its operation within 18 months. The main reason for the high rate of mortality is the ease with which inexperienced people can start new business.
Contrary to popular opinion, small business is thriving in the shadow of big business. One study shows that as a rule, small entities are more profitable than the large processing companies. Continue reading
Every entrepreneur, starting its activity, should clearly understand the need for the future in financial, material, human and intellectual resources, sources of their receipt and also be able to calculate the resource use efficiency in the work process of the firm.
In market economy businessmen cannot achieve stable success if will not be accurately and effectively plan their activity, constantly to collect and accumulate information about both the state of the target markets, position on them competitors, and about own prospects and possibilities.
With all the variety of forms of business there are key provisions that are applicable in almost all fields of commercial activities and for different firms, but necessary in order to timely prepare and bypass potential difficulties and dangers, thereby to reduce the risk in achieving goals.
In a market economy, a business plan is a working tool used in all areas of business. Continue reading