Smaller businesses have a limited range of the tools they use in strategic planning. This is largely in part because larger businesses have stronger financial resources than smaller businesses. Larger businesses also normally have their own in-house department that deals with just this part of the business. Larger businesses also tend to base their plans on five years or more where smaller firms normally only have theirs based out on five years or less (Siddique, 2015).
As far as the reasons why it is difficult to execute such plans, there are a lot of variables that a business can not plan for until they actually occur. Environmental uncertainty can end up costing a company more time and money than anticipated. Customers, suppliers, distributors, competitors, government, public attitudes, technology, and financial markets can all affect strategic planning. Businesses can try to plan for these types of events to happen, but it is impossible to plan for them all (Matthews & Scott, 1995).
Angela Rosario
References
Matthews, C. H., & Scott, S. G. (1995). Uncertainty and planning in small and entrepreneurial firms: an empirical assessment. Journal of Small Business Management, (4),, 34. Retrieved from https://www.freemanagementresources.com
Siddique, M. C. (2015). A Comparative Study of Strategic Planning Practices of SMEs and Large-Sized Business Organizations in Emerging Economies: The Case of UAE. Strategic Change, 24(6), 553–567. https://www.freemanagementresources.com
Thompson. (2018). Crafting & Executing Strategy: The Quest for Competitive Advantage 21st ed. McGraw-Hill ISBN: 9781259732782. Retrieved from: https://www.freemanagementresources.com
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