ABSTRACT
The business plan’s primary objective is to inform external investors. It is prepared early in the organization’s development cycle and is often used to provide potential investors information related to the organization and its management. Information from it feeds directly into the Strategic Plan. While the Strategic Plan focuses on the future of the organization, the focus of the Annual Operating Plan is short range and addresses the current operations. There is a big difference between a Strategic Business Plan and a Strategic Improvement Plan. The Strategic Business Plan sets the product and service strategy for the organization: the markets that they hope to penetrate, the new products that will be introduced, the production. The Strategic Improvement Plan defines the transformation in the business personality of the organization. The Strategic Improvement Plan supports the Strategic Business Plan so the two of them, although different in content and intent, must be kept in close harmony.
