Types of business plan

Types of business plan

Planning is the bridge or gap between present and future. In planning we evaluate certain things and accordingly we formulate some strategies or set of actions in order to achieve something. Simply planning means a course action which takes place in future to achieve some goals.

Essentially in business there are three major types of planning

Strategic Planning

Tactical Planning

Operational Planning

Strategic Planning is always done at upper level or it is a top level managerial affair. In such type of planning the management of the firm formulates high degree of action map which are very vital to the firm or enterprise. It may be the new market segmentation, positioning of the product or sourcing of new raw material. In simple word it caters the long term vision of the enterprise.

Tactical Planning: it is a mid-level or executive level planning. The main purpose of tactical planning is to serve the long term vision of an enterprise. It is designed in such a way so that it fulfills the main purpose of strategic plan of a business organization. For example ABC Ltd. Is a Gujarat based company and it is engaged in palm oil business. And thus it imports palm oil from Malaysia and Indonesia where as its primary market is in North-East India and Bengal region. In this case importing oil to Gujarat ports and again processing and re-selling to its primary market i.e. North East Indian and Bengal region is very costly affair. So, in this case; the firm plans direct import to some leading ports of Bengal and processes them somewhere in Kolkata region and again it markets them in their desired locations. With the help of such type of planning it helps them to reduce the large chunk of extra cost of goods sold.

Operational Planning: it is a ground level planning or you can say that it is short term plan which shifts according to the situation. Like when there is a low price of raw-materials business organization purchases or stocks large quantity of stock.

I hope it makes clear understanding of basic concept of business planning. If you want to learn or understand about other topics related to management or marketing please do let me know by below comment section.

Happy reading, happy learning.