Importance Of Strategic And Short-term Planning Processes In Management And Types Of Financial Accounting And Control Methods

Planning Process

Planning implies “Figuring out in advance

According to (Raisi, 2013), while defining business, planning is an important management function for a business to succeed as it helps in enhancing its effectiveness and efficiency. Every other function organizing, controlling and leading follows the platform of business planning. Thus, running a business without planning is similar to a ship sailing without a captain. The report discusses the importance of business plan and the key aspects including the strengths and weaknesses through analysis and evaluation of the two engineering business plans mentioned below.

The consultancy is an organization located in Burlington, USA and is responsible for designing and consultation of environment friendly or environmental sensitive buildings. They also provided recommendations on energy consumption noticed as an upcoming trend among the people.

Rosafarbenes Nilpferd & Sons Engineering, Inc undertakes business that is high tech thereby providing solutions not only as a consultant but is also responsible for hardware and software development.

 Above business plans are discussed in detail on Chapter 02.

                                              Figure 1.1: The planning process and its’major components

Here we discuss about the planning process of a company. In this context, the business planning depends on the vision and mission of the company so that goals can be set accordingly towards their achievement. “The success of the overall planning process is graded on how effectively and/or efficiently the goals are met. Effectiveness relates to whether the organization is chasing the right goals in terms of their resources and competencies. Efficiency is about how well they are using their resources to achieve the goal” (Bartol, Tein, Matthews, Sharma & Marin, 2010).

The types of planning incorporated in a business are:

• Operational Plans
• Tactical Plans
• Strategic Plans

The plans must be set in accordance to the goals so that they are achievable. Therefore, there must be flexibility in the planning process and the management should decide on different plans for each level so that it becomes easy for everyone to work towards the ultimate goal of the company (Bartol, Tein, Matthews, Sharma & Marin, 2010).

Energy Conservation Business by Plan Green Power Consultancy

The Green Power Consultancy provides advices regarding

Employing transportation option

Through the service, the company aims to reduce the energy consumption of the employees while travelling. The aspects of the plan include giving an outline of the options for public transportation, ensuring transportation voucher from the company at subsidized rates, providing covered lockers for the bicycle and facilities for showering and activities promoting increased use of bicycles amongst employees as a major transportation means.

Using grey water

The company also encourages capturing and using of grey water. The water used from some other sources as the rainwater or the faucet water that can be used for land irrigation or toilet flushing but no longer used as potable known as grey water.

Types of Planning

Ensure passive heating

Passive heating refers to designing structures that utilize and capture heat that is either natural or by product of the construction. In this context, the company ensures the placement of the windows in the building for proper passive heating

Considering renewable energy

The company also makes sure that the customers are well informed and in a position to make sensible decisions regarding the usage of the renewable sources of energy. These sources of energy does not deplete faster than produced. Some of the sources include biomass, solar energy, wind power, hydropower and photovoltaic energy.

The management team of Green Power Consultancy managed by Sue Lang and Dan who have immense experience in business architecture, renewable energy and environmental studies. The company however deals with individual customers and architects. However, Green Power Consultancy has noted three key aspects for its success. The first aspect is to include the constant need to provide solutions as per the demands in the market. The second aspect ensures that there should be economic justifications for all the offerings made. Lastly, the solution provided must have a long term economic value and considered beyond environmental considerations

Mission

“It is Green Power Consultancy’s mission to provide the finest green energy solutions for new constructions as well as existing building owners/lessors. Through careful analysis, attentive customer support, and cost effective solutions, Green Power will become a stable business serving the Burlington community” (Energy Conservation Business Plan, 2003).

Objectives

The objectives of the company are as follows:

• Ensuring profit within a period of three years
• To have  a market share of the best consultancy in a period of just five years
• To provide cost efficient analysis of environmental approaches for constructing buildings

(2) Electronic Engineering Business Plan by Rosafarbenes Nilpferd & Sons Engineering, Inc

However, in Chapter 01, one can see that RNSE in addition to hardware and software development offers consulting services. Becket Nilpferd owns the company solely. The company performs its operation from two large offices located in Fezzaewyg, Freedonia.  The company started off with consulting service but later on it moved on to hardware and software development to meet the increasing demand of the product category 1 devices. The first prototype has been quite popular among the customers and the company is considering measures to ship the improvised version the device. This is no be noted here that all manufactured products are outsourced to contract manufacturers.

Mission

“Rosafarbenes Nilpferd & Sons Engineering’s mission is to develop cutting-edge Product Category solutions for appliance and equipment makers who, due to the fast pace of technology, are under pressure to get their products to the market quickly. RNSE achieves this by maintaining a small “think tank” style technical team, outsourcing the manufacturing, and keeping a marketing offering which caters to the more demanding Product Category One requirements, leaving the simpler high-volume and price-sensitive market needs to the competition” (Electronic Engineering Business plan, 2000).

Products

Rosafarbenes Nilpferd & Sons Engineering’s products are platforms that have every necessary aspect for Technology 1 thereby enabling makers of the appliances to concentrate on the specific applications of the products. However, the company occupies a certain portion of the technology 2 system market as well. Any technology incorporated in a product physically to ensure performance of a specific application or function, understood as Technology 2 system. In this respect, examples for consumer products with technology 2 system are entertainment systems at homes and kitchen appliances and in commercial cases, the examples include industrial process controls.

Energy Conservation Business by Plan Green Power Consultancy

Objectives

RNSE do believe in various objectives. These described as follows:

• The company aims at making sure that its products are compatible with minimum five famous first tier operating systems.
• Redesigning the website and ensure that 300 Value Added Resellers get a quality mailer.
• By collaborating and networking with technology manufacturers, other industry players and operating system developers arranging at least five links/banners on a reciprocal basis with websites related to the key market.
• In order to target instrumentation, telecommunication and industrial automation sectors the company seeks to arrange an advertising campaign related to trade publications.

Marketing Strategy

Rosafarbenes Nilpferd & Sons Engineering aims to concentrate on the sectors of the market that is more demanding and in the process make a mark for the high tech innovative technology among its competitors. The company follows a high pricing strategy in line with its image and aligns it with the first tier developers of operating systems and technology manufacture 1. Further, strategies should include investment for advertising targeting the trade publications.

Positioning Statement

RNSE desires to stay through constant improvement of its products and thereby remaining at a position that is much ahead of the competition.

Business plan has its unique strength, weakness, challenges and opportunities. Therefore, SWOT analysis enables one to understand the key aspects of business plan and thereby come to any conclusion.

There are many strength of Green Power Consultancy. The company aims at earning revenue continuously so it tries to provide a wide variety of services to its customers. Therefore, in a short period the company’s profit margin has been remarkable. Moreover, the company has always been conscious of the present market trend and customer demand and has aligned its services as per the market conditions. The company focuses on delivering the services like efficient building construction, employee transport; renewable energy, grey water and passive heating that are presently the trend in the market. Additionally the company also focuses on the ultimate reality of 100 % customer satisfaction by prioritizing the customers. The solutions provided to the customers are most economical thereby strengthening the company’s goal. Thus, Green Power Consultancy is not only effectively using its resources but also dealing with its individual customers and architects well with only a small group of staff.

One of the weaknesses of Green Power Consultancy lies in using more marketing strategies. The reasons include company’s immense source of knowledge regarding renewable energy and green power. Therefore, they can provide good information and make the community more aware of it. Moreover, the company can also create awareness through seminars and info sessions in school that can be an effective way of conveying the message to the community. The company must also look after more options for providing training and facilities to the architects. This is important because they are key people responsible for dealing with the customers. The company also has less staffs that increase risk. Thus, in order to expand the business there is also a need for skilled and efficient architects. The company must also invite more investors for investing their money on business.

Presently there has been a crisis in energy and therefore everyone is expressing their interest to know more about renewable energy. Therefore, Green Power Consultancy remains in the right business track and should implement means to not only expand the business but also make sure that the business is more stable. The challenges it faces are lack of skilled people in the era of complex and new technologies.

However, there are various similarities and differences of Rosafarbenes Nilpferd & Sons, Inc (RNSE), an engineering company, when compared with Green Power Consultancy. The revolution that RNSE bought in its profitability is by shifting to hardware and software development from a consulting company. This company has a brilliant foresight and keeps an inventory of components that are essential for manufacturing. There is always maintenance of stock done after sufficient financial execution. Further, the company plans to start shipping and introduce high-end version of its devices. Therefore, RNSE targets those companies that have a need of using improved versions of the products. These include telecommunication companies, instrumentation companies and small automation. The company has effectively chosen the market aim and at the same time consider queries outside the chosen market as time consuming. Another aspect of the company that is leading to its success includes that it has strategized policies in a manner so that it can make the customers aware quite easily. Moreover, the pricing and promotional strategies undertaken by the company is also responsible for strengthening its position.

RNSE have planned everything so effectively that their weaknesses are not highlighted that much. However, the company rather than having a sole proprietorship should have marketing tool in the form of web strategy. Thus, an ownership shared enables a company to perform more effectively and stably towards its target.

The company will never run out if sales because their marketing opportunities are quite high. However, for improvement in the business front there must be more web strategies incorporates as mentioned above. Thus in order to survive the competition in the field, the company must not only focus on customer satisfaction but also use the best and the latest technology.

Compared to Green Power Consultancy, RNSE is a more developed company though they individually have their strengths and weaknesses. Both the companies are technology based as they cater to engineering business. Therefore, there is a need for skilled engineers with updated technological expertise in both the companies. As far as updating their products or services are concerned both companies are aware the ongoing market trend. However, Green Power Consultancy, in order to understand the major players and the prevailing patterns must do a industry analysis. This will not only give them better idea but also an edge to compete with others.

Conclusion:

One must start with the basics while implementing an effective engineering plan. Therefore, in the first place a quick assessment is very necessary. Thus, it is very important to understand the business the company is doing, its objectives and mission, the strategies for its success, market analytics, financial plan, products and services, pricing, promotion and sales strategy.

Thus, a good business plan is one that includes:

• Description of the final goal of the business
• Takes into account every possible opportunity
• Ensures increasing the flexibility in working
• Mentions the cash flow clearly

Therefore, it is necessary to make a strong business planning that will lay the foundation for greater success in business.

Reference:

Bartol, K., Tein, M., Matthews, G., Sharma, B., & Martin, D. (2010).Management: a pacific rim focus (6^th ed.). Sydney: McGraw-Hill.

Raisi,M. (2013).ENS5543 Engineering Management Course materials. Retrieved from Edith Cowan University, School of Engineering blackboard website: https://blackboard.ecu.edu.au/webapps/portal/frameset.jsp?tab_tab_group_id=null&url=%2Fwebapps%2Fblackboard%2Fexecute%2Flauncher%3Ftype%3DCourse%26id%3D_584895_1%26url%3D

RosafarbenesNilpferd& Sons Engineering, Inc. (2000). Electronic Engineering Business Plan Retrieved August 20,2013, from Bplans website:
https://www.bplans.com/electronic_engineering_business_plan/executive_summary_fc.php

Green Power Consultancy. (2003). Energy Conservation Business Plan Retrieved August 20,2013, from Bplans website:
https://www.bplans.com/energy_conservation_business_plan/executive_summary_fc.php

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