Importance of Planning within the business enterprise Environment

The objective of the assignment is to show the knowledge of the business environment and management in structure and property. To achieve this, two core elements associated with management will be analyzed and compared with an existing development company such as Wilmot Dixon, which is fighting the current cost-effective climate. This review will discuss the execution of planning using ground breaking management strategies and tools necessary to assist companies to be better positioned for sustainable growth.

Defining the Business Environment

According to Palmer & Hartley (2006) the business enterprise environment can be explained as everything which surrounds something. For instance, if we take a business as the core of a working system, there are surrounding influences which contribute to the workings of the system within the macro environment. To get a business it can be difficult to recognize what the elements are within the environment. We can demonstrate important factors associated with the business enterprise environment using the PESTEL model as illustrated in Shape 1. 0

Businesses endure by turning inputs into goods and services which customers in the environment want to purchase. The current local climate suggests we remain in a down move market. With reference to Wilmott (2011) in an exclusive interview, he suggests that 2011 will be an exceptionally tough year due to the soaring costs from the supply string and materials. Another politically associated matter is the increase in VAT. According to the Federation of Expert Contractors (2011), increasing VAT from 17. 5% to 20% could lead to over 11, 000 job losses in the structure industry over another decade. This increase may deter many businesses from starting new assignments and where assignments are starting, contractors aren't breaking even. An example of this is related to Willmot Dixon, an initial tier builder where they have forecast a slowdown in the property market. Relating to Willmot (2011) "Companies are costing below cost because they are chatting themselves into believing the market price for materials and offer chain will continue to fall so they can restore the difference".

A fundamental issue with companies facing such a troublesome year is always to implement a business management plan seeking to read the environment and know how the business enterprise system will develop in the future. Such a tactical move would entail essential planning.


3. 1 The purpose of planning

Essentially, the purpose of planning is to contemplate future activities whether this is economic, political or environmental. Matching to Brews & Purahit (2007), as business conditions become additionally unstable, companies tend to adapt a planning strategy. Change in the business environment creates doubt. It allows companies and people to adapt by creating goals and objectives and sets out how to attain them by implementing a small business plan.

With mention of number 1. 1, the initial approach is always to identify the purpose of planning, identifying the company's current position on the market and identify where they want to be. Once this has been established it'll give you a clearer way to employees. This may boost motivate to increase control by allowing visitors to measure their improvement against set goals and allow the business to make use of its resources proficiently. With regards to one of Wilmot Dixons senior associates, Willmot (2011) announced one of the firms key objectives due to the politically associated development of re-furbishing un-occupied housing Willmot Dixon is diversifying into new areas such as private residential and mixed-use regeneration development. We are able to associate this back again to the PESTEL model where we can go through the political issues and demographics of the existing economy. A major issue is that there is a lack of casing with an ever increasing population. The federal government is seeking to re-furbish un-occupied properties scattered around the united kingdom and put these properties back to council housing, an area Willmot Dixon has proposed to focus on.

3. 2 Articles of planning

Companies expanding in business or are looking to adjust to change available environment, prepare a business plan. According to Mckeever (2010), a company plan is a file that pieces out the market segments the business enterprise intends to serve.

There will vary plans which an enterprise will decide upon, for example

A tactical plan places out the entire direction for the business. It is wide in scope and addresses all the companies' major activities.

A strategic business unit consists of lots of meticulously related products, which is meaningful to formulate a separate strategy.

An operational plan details the way the overall objectives should be achieved, by specifying what's expected from mature management experts from specific departments or functions.

Annual plans are common amongst most companies focusing on finance and setting up finances for the year ahead.

What is common in all business strategies is focusing on the way of the business enterprise in a nutshell and long term planning.

Key aspects of planning are the strategy of the company and the development of the business to improve earnings. A planning hierarchy can be seen in number 1. 2, demonstrating the way the characteristics of strategies changes at each level.

According to Mathews (2011), a federal government plan to minimize the cost of public construction tasks by the fifth, through standardising structures, was posted alongside the recent Budget. With the house market having been so affluent and now with the market and the country progressively sliding into further tough economy, it would appear that more structure companies would be seeking to plan long lasting, using a more strategic option somewhat than arrange for the short term.

3. 3 The Process of planning

The procedure for planning relates to how plans are produced for a company or organisation to succeed. Regarding to Jennings (2000), companies change their method of planning as conditions change. There are seven iterative responsibilities which may be performed when making an idea as shown in figure 1. 3.

Figure 1. 3 Seven iterative tasks in planning.

Any plan depends upon gathering information. Reverting back to the PESTEL model is 'good practice' when sourcing information such as market movements, formal analysis of the politics and legal factors, current market, socio cultural factors, technology and issues associated with the environment. If the company is a centralised company where in fact the decisions are used at the centre of the business, or a decentralised company, where in fact the decision-making is delegated to lessen degrees of management, within the organisation casual encounters with colleagues is a major influence in gathering information. Once every one of the information has been accumulated a mission statement can be compiled demonstrating the organisations path and overall goal in the construction market. It'll guide decision making and should inspire and inspire the workforce to accomplish the desired consequence. Due to the mission assertion, a SWOT evaluation can be used to evaluate the company in today's economic weather.

Conducting a SWOT examination as identified in body 1. 4 will allow companies such as Willmot Dixon to determine their key talents and weaknesses. Completing a SWOT analysis integrates the exterior opportunities and risks, as example, corresponding to Lowery (2011), the economy is shaping to be always a tough 12 months for the structure sector. VAT raises and higher workplace National Insurance efforts combine with government spending slices to spell yearly of contraction.

Articles like this are a means of monitoring progress externally as well as internally. By evaluating how the economy will result an organisation and by concluding a SWOT analysis,

allows companies to create their goals and objectives


Goals and goals give focus to a task such as what will be achieved so when. Placing goals is difficult for companies as they need to look beyond their present status and forecast how their role as an enterprise will participate in the changing current economic climate. The requirements for examining goals is to be realistic and this can be achieved using the SMART acronym.

Specific: Does the target set specific targets?

Measurable: Goals can be described accurately enough to measure progress towards them.

Attainable: Goals should be challenging however, not unreasonable. (Goal setting techniques theory implies the motivational repercussions of goal setting.

Rewarded: People notice that attaining an objective will bring praise.

Timed: Does the target specify enough time over which it will be achieved, to an acceptable and suitable standard.

Goals and goals provide the reference point for other decisions within the management plan, formulating the criteria against which performance can be measured.

Creating a couple of goals and aims will direct an organization to identify what activities and resources are essential in order to accomplish the collection goals and aims. This will identify what needs to be done, who'll get it done and communicate these details to the relevant workers. With reference to Lynch (2005) specifies that professionals handle this facet of planning in three ways

Comprehensively: where professionals opt to make a lower change in course. They presume that success depends upon driving a car the changes quickly and in a coordinated way across the company that means a comprehensive business plan,

Incremental or directional plan: where areas of the business plan are uncertain like a volatile market, or where in fact the company is depending on the end result of research. 'Important strategic areas may be left deliberately unclear before effects of current occurrences have been proven' (Lynch, 2005, Page 633), or the 3rd way, selective planning when neither of the other two methods will be the best way forwards and managers implement major change only in some areas of the business plan.

Plans will vary for different companies, as an example, Grant (2003), offers an insight in to the way mangers can form strategy. For example his analysis in 6 major petrol companies used an obvious planning process as specific in amount 1. 3. The facts varied between companies but all distributed the normal components.

Figure 1. 3 The universal strategic planning pattern Source: Predicated on Grant (2003)

Once a plan has been developed the goals and actions of the program must be communicated to managers and employees. In bigger organisations this may incur commitment but is completed to ensure

Everyone comprehends the plan

Allow time to solve any issues, confusion or ambiguity

Communicate judgements and assumptions that underline the plan

Ensure the plan is instigated and activities are organised used and on paper.

3. 4 Results of planning

However good a small business plan is, unless it is implemented nothing normally happens. To ensure the plan is instigated, progress must be monitored. This is monitored in a number of various ways such as, outcome and earnings or by completing goals and objectives. By constantly evaluating the improvement or the business and monitoring the results, objectives and focuses on can be transformed to suit the business if for example you can find change in legislation. This is why gathering knowledge and using a fundamental element including the PESTEL model is a continual cycle to ensure lasting growth.


Business plans will change in every company, however the major elements will always remain consistent. To be able to survive the existing economic climate it is time for business to make significant changes. It is vital for companies to assemble information that is as of yet with legislation, politics, technology etc and all the elements associated with the PESTEL model. This will enable companies to improve the business plan to constantly advance with the market trend.

The construction industry, according to numerous major companies and societies, is still in recession and with a fresh government launching legislation involving tax boosts and spending slashes, building companies need to rethink their current strategies. Willmot Dixon, for example, is looking to diversify into different regions of property development, with steady work sprouting from maintenance and refurbishment work. Samples such as this can show positive management thinking that will be the flagship for other smaller companies to check out.


Robson W. , (1997). Strategic Management & Information Systems. 2nd Ed. Great Britain: Pearson Education Limited.

Palmer, A and Hartley, B. , (2006). The Business Environment. 5th Ed. THE UK: McGraw-Hill Education

Harris, F and McCaffer, R. , (2006) Modern Structure Management 6th Ed. THE UK: Blackwell Publishing Limited

Broddy, D. and Paton, S. , (2011)). Management 'An Benefits' 5th Ed. England: Pearson Education Limited

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