Planning an important tool to management of small scale business

Thesis Overview

<p> <b></b></p><p><b><b>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1 &nbsp; &nbsp; <br></b><b>Background<br>of the study</b></p><p><b></b></p><b><p>This project introduces<br>planning as an important tool to management of small-scale business with a case<br>study of <em>PETER<br>VENTURE.</em>&nbsp; It is located at No. 6 Isiokpo Awada Layout, Onitsha<br>– Anambra State. This venture deals on production of plastics of various kinds.<br>Emphasis is placed on planning as important tools to the management of<br>small-scale business. Upon completing this project one should be able to<br>describe the importance of planning and why it is needed in a small-scale<br>business and should understand managerial task in planning. Planning, being one<br>of the functions is very necessary to the survival of any business. Planning<br>includes the forecasting and selecting of Objectives with policies, programme<br>and procedures for achieving their business goals. It involves making decision,<br>it helps small-scale business to grow, and it embraces all the activities which<br>a company undertakes to determine the type of products it will produce/market.<br>It is normally undertaken to determine the present and further requirement of<br>customers, which involves goods and services for their satisfaction<br>(customers). Tools used in planning involve<br>collection of data by coding, tabulating, charting and discussing them in an<br>orderly manner in other to bring out their meaning clearly by analyzing data<br>collected.</p><p><strong>PROBLEM<br>ASSOCIATED WITH THE SUBJECT MATTER</strong></p><p>Planning is an<br>intellectually demanding process, it requires the conscious determination of<br>course of action, and the basic decision on purpose, knowledge and considered<br>estimates.Projects have failed in most business enterprises such as small scale<br>as a result of inadequate plans being made and all variables like to affect the<br>business, not adequate controlled. Planning should consider some factors in the<br>environment, which will help or hinder the organization in achieving its goals.<br>They should take account of existing organization and provide for control, so<br>performance can be checked with established standards. It focuses on action and<br>purpose, which forecasts actions and tends towards the ultimate goals and not<br>those irrelevant ones. Small scale business management planning seeks to<br>achieve a consistent, coordinated structure of operation focused and desired<br>ends. So without planning action produces nothing but<br>chaos. &nbsp; One main features of planning is to make a decision.<br>This will involve assumptions about the future and about many variable factors<br>usually dealt with in the decision making process.Many persons may be involved<br>in planning activities, which must be continuous process, but the main point is<br>that these activities must produce a specific plan, without which plans,<br>planning activities have no real effect.</p><p><strong>1.2<br>PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH</strong></p><p>Planning being an important<br>tool to small-scale business requires the business enterprise to determine its<br>long-term survival based on finding the most profitable way to allocated<br>limited resources among competing ends. Labour hours to such values as how<br>satisfied individuals and groups in the business of small-scale management.The<br>higher up the hierarchy of management the more attention is paid to planning,<br>particularly in setting out goals and strategies for long period ahead.<br>Managers lower in the hierarchy usually deal with sections of the total plan,<br>and are concerned with shorter periods of time. Efficiency of planning is measured<br>by the amount it contributes to purpose and objectives, as offsets by costing<br>and unsought required formulating and operating it. The most important way<br>management can contribute to growth is by systematic planning probabilities are<br>forecast and programmes developed to take advantage of them. Consistent<br>attention must be given to changing circumstances and many revisions of plans<br>may be needed.</p><p>Items affecting forecasting<br>are as follows:- Political stability, Population trends, Price levels, government<br>control and fiscal policy, employment, productivity and national income,<br>technical environment. Some areas have shown great changes such as computer.<br>Its impact and speed development must be especially noted.</p><p>&nbsp;A Simple Cycle Of<br>Business Plan Activity Can Run Thus:</p><p>Planning cycle.</p><p>FORECAST PLANS </p><p>&nbsp;The diagram above<br>shows how planning of small-scale business an important tool to the production<br>and distribution to customers.</p><p><strong>1.3<br>THE IMPORTANCE OF STUDYING THE SUBJECT AREA</strong></p><p>&nbsp;It is of great importance to studying the area<br>of small scale business planning. In planning for longer periods, a forecast of<br>technological changes is vital especially for those companies, which are in<br>area rapidly advancing technology. For an organizational point of view<br>companies have separated the basic day-to-day planning activity from a<br>strategic planning for the future.Job is not so rigidly defined as in a large<br>organization and there is more flexibility between jobs. There will be less<br>formality than in larger organizations. Decision-making will be quicker and<br>rules and procedures less rigid, which are usually, based on planning.The size<br>of the outdoor staff depends upon many factors, particularly the method of<br>production. Geographical size of the territory usually depends upon the physical<br>nature of the product and services. Work must be planned, so that mechanical<br>gadgets and equipment, raw material are effectively utilized. For efficient<br>production of products (plastics) customer’s demand and buying patterns,<br>factory locations production capacity are applied based on planning and<br>techniques simulation. In forecasting it is important to stress the need to<br>examine the economic environment and possible fluctuations in company profits<br>and relations to possible cycles of business activity.</p><p><b>1.4<br>OBJECTIVE OF THE STUDY</b></p><p><b></b></p><b><p>The objectives of the study are;</p><p>1. &nbsp; To ascertain<br>the present management practice of planning and its effects on small scale<br>business</p><p>2. &nbsp; To<br>examine some strategies for the attainment of goals and objectives set out for<br>the business</p><p>3. &nbsp; To<br>find out the role of management in ensuring the smooth running of the business</p><p>4. &nbsp; To ensure that business<br>at any given time is capable of carrying out its activities that could aid in<br>achieving its goals.</p><p><b>1.5<br>RESEARCH HYPOTHESES</b></p><p><b></b></p><b><p>For the successful completion of the study, the<br>following research hypotheses were formulated by the researcher; </p><p><b>H0:<br></b>there<br>is no present management practice of planning and its effects on small scale<br>business<b></b></p><b><p><b></b></p><b><p><b>H1:<br></b>there<br>is present management practice of planning and its effects on small scale<br>business</p><p><b>H02:</b>there<br>is no role of management in ensuring the smooth running of the business</p><p><b>H2:<br></b>there<br>is role of management in ensuring the smooth running of the business</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>1.6<br>SIGNIFICANCE OF THE STUDY</b></p><p><b></b></p><b><p>This<br>study will be of significance to students of different higher of learning as it<br>would enlighten them and the entire nation. Finally, this study will also help<br>to serve as literature (reference source) to the public, individuals and<br>corporate bodies into what to carry out on further research on planning an<br>important tool to management of small scale business.</p><p><b>1.7 SCOPE AND LIMITATION OF<br>THE STUDY</b></p><p><b></b></p><b><p>The<br>scope of the study covers planning an important tool to management of small<br>scale business. The researcher encounters some constrain which limited the<br>scope of the study;</p><p><b>a)<br>AVAILABILITY OF RESEARCH MATERIAL:</b><br>The research material available to the researcher is insufficient, thereby<br>limiting the study &nbsp; &nbsp; &nbsp; </p><p><b>b) TIME:</b><br>The time frame allocated to the study does not enhance wider coverage as the<br>researcher has to combine other academic activities and examinations with the<br>study.</p><p><b>c)<br>Organizational privacy</b>: Limited Access to the selected<br>auditing firm makes it difficult to get all the necessary and required<br>information concerning the activities. </p><p><b>1.8 DEFINITION OF TERMS</b></p><p><b></b></p><b><p>Is the most basic of<br>managerial functions. It determines organization objectives and purposes so<br>that everyone understands what they have to accomplish.</p><p><b>PLANS</b></p><p><b></b></p><b><p>&nbsp;Is outline drawing showing the relative size,<br>positions of parts.</p><p><b>GOAL<br>(IMPORTANT TOOL):</b></p><p><b></b></p><b><p>&nbsp;It gives broad guidelines towards which more<br>detailed and specific plans are directed. They consist of the purpose, mission<br>and objectives.<b></b></p><b><p><b></b></p><b><p>&nbsp;<b>STRATEGIC PLANNING:</b></p><p><b></b></p><b><p>Involves deciding upon the<br>major goals of the organization and what policies will be used to achieve them.</p><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>&nbsp;</b></p><p><b></b></p><b><p><b>TACTICAL<br>PLANNING</b>: </p><p>Involves deciding how<br>resources will be used to help the organization achieve its strategic goals. It<br>relies more on past records and involves shorter time periods.</p><p><b>DECISION:</b></p><p><b></b></p><b><p>Is a choice where by a<br>person forms a conclusion about a situation. This represents a course of<br>behaviors about what must or what must not be done. It is the point at which<br>plans, Polices and objectives are translated unto concrete actions. Planning<br>leads to decision guided by company policies, procedures and programmes.The<br>purpose of decision-making is to direct human behavior towards a future goal.<br>If there were no alternatives, there would be no need for a<br>decision. &nbsp;</p><p><b>SMALL-SCALE<br>BUSINESS: &nbsp; &nbsp; &nbsp; &nbsp; </b></p><p><b></b></p><b><p>Is independently owned and<br>do not dominate the market.</p><p>It plays an important part<br>in the private enterprise system. Management is processes by which<br>scarce-resources are combined to achieve given ends. Policies are guide to<br>action or decisions of people. Policies are directives issued from a higher<br>authority, and provide a continuous frame work for the conduct of individuals<br>in a business. They are in effect a type of planning. Policies are expressions<br>of a company’s within attitude towards types of behaviour within which it will<br>permit, or desire employees to act. They express the means by which the<br>company’s agreed objectives are to be achieved and usually take the form of<br>statements, telling members how they should act in specific<br>circumstances.Policies reflect management thinking on basic matters and inform those<br>interested, Management thinking on the activities of the company about the<br>company’s intentions regarding them.Policy formulation may begin at any level<br>of organization. MBO which has its meaning as Management by Objectives, is one<br>approach to planning that enables all managers to participate fully in planning<br>activities. Subordinate and managers meet to establish objectives and<br>periodically review progress. It is based upon as set of assumptions that under<br>proper conditions, people will find satisfaction at work and will accept<br>responsibility for their results.Forecasting is extrapolating or projecting the<br>trend of the past experiences into the future. Forecasting sales by product and<br>sale territory is a never-ending responsibility of a market analyst or a sale<br>manager.</p><p>Budget control is the basis<br>of control of the activities of a firm, or small-scale business and government.</p></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>