From the mid seventies we can note that scholars makes the distinction between small and large businesses in terms of needs, level of sophistication and range of strategic planning. Bracker and Pearson (1986), Rue and Ibrahim (1998), Perry (2001) and Wijewardena, Zoysa, Fonseka and Perera (2004) all formulate definitions of strategic planning which take the uniqueness of small businesses into account and allow for the fact that small businesses cannot draw on management and material resources in a manner similar to that of large organizations.
Empiric studies’ findings indicate at a correlation between strategic planning and performance. Nevertheless, the findings are mixed. A survey of twenty-six experimental studies enabled Miller and Cardinal (1994) to identify a significant positive connection between strategic planning and small business performance. Robinson (1982) found a significantly high level of profitability as well as an increase in sales and returns on sales and the number of full time employees in a group of small businesses that employed external consultants for the purpose of strategic planning. Compared with other businesses, Bracker and Pearson (1986) discovered a significant increase in income and remuneration per entrepreneur in businesses that prepared strategic plans (the highest of four designated levels of strategic planning). No significant increase was detected in the measure salary expenditure divided on the sum total of sales. A significant differentiation in the rate of sales increase was found by Rue and Ibrahim (1998) in small businesses that incorporated written planning (basic or sophisticated), as opposed to other businesses. Perry (2001) detected a significant differentiation in the degree to which planning was conducted in small businesses that did not applied for bankruptcy as opposed to those that did. Wijewardena et al. (2004) define three levels of planning: no written planning; basic planning; and detailed planning. The findings indicate that the level of planning stands in direct proportion to the level of increase in sales. Yusuf and Saffu (2005) classify three levels of planning: low; moderate; and high. A connection was found between increase in sales and the low level of planning. No correlation was found between strategic planning and increases in market share or in profitability.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
I'm quite new at this. I understand curriculum as ...
By: swingcapri | 15-07-2008
I'm quite new at this. I understand curriculum as a school leader but I never got around to doing and evaluability assessment, nor a logic model as the process design as a result of the assessment.
Question: Could Yedda provide me with a simple evaluability school base study. Any subj. and a logic model that support that assessment? (Please)
Looking fr replica desighner hand bags
By: sheila | 13-07-2008
Can someone please help me i am trying to find chanel and ther name brand replica handbags so i can stay home with my new baby but yet make money.They seem to be s hard t find at a price were i could make money.please help thank yu sheila please e-mail me at parettbay@aol.com
Jennifer Holiday and Jennifer Hudson duet.
By: francis | 09-07-2008
Hi there,I am looking to either purchase or download the recording of Jennifer Holiday and Jennifer Hudson's duet of "I Am Telling You" from the BET awards. Any suggestions. I have tried the internet but seems its no longer available anywhere.Thanks
Debate competion rules
By: Jim | 07-07-2008
Need to find Debate competion rules for either EMAC or IMAC
What is the benefit of a four barrel carburetor ...
By: fastford | 29-06-2008
what is the benefit of a four barrel carburetor and aluminum intake manifold on a ford 302 motor? and what would be the expected torque/ horsepower gains?
Real 10k gold beads ai wholesale in SC
By: pebba33 | 28-06-2008
Where can I find real 10k gold at wholesale in SC for my home based business?
Q&A Powered by:
Latest Small Business Articles
Google Adsense : an Introduction
By: upinder singh negi2 | 18/07/2008
For many people, Google's Adsense publishing program is responsible for their very first taste of an online income. It may be pennies and cents but that first time you look in your account and see a credit is an exciting moment.
How to Improve Business Signs Through Digital Printing
By: Joel Owens | 17/07/2008
Business signs have never been easier to do. Thanks to the advancement of technology, including the development of digital printing. This is the time when you have to exhaust the available resources around you and maximize their potentials to work to your advantage.
Profits of Google Adsense
By: upinder singh negi2 | 17/07/2008
Are you a webmaster who needs funds to keep your website running? Or is your website the only way for you to earn income? Whichever you are, for as long as you are a webmaster or a web publisher and you need cash, affiliate marketing may work well for you.
How You Do Internet Business
By: upinder singh negi2 | 17/07/2008
Internet business mastery is something that can be learned from a mentor. The problem with most of us is we think we know everything by browsing the net and try to do something different than what others do.
Journey of Google Adsense
By: upinder singh negi2 | 17/07/2008
As a blogger, I started creating websites that I found personally interesting to me. I found articles that were fun and interesting and posted them for people to read. After all.. people create blogs so they can share their feelings and aspirations.
Memorial Jewelry: Having Your Departed Loved One Close at Heart Through an Urn Necklace
By: sumeetha Gowda | 17/07/2008
There is now a way to have your departed loved one close to you everyday, thanks to the concept of memorial jewelry. Cremation jewelry, remembrance jewelry, keepsake necklace - whatever everyone else calls it, it practically refers to the same thing. It is a piece of jewelry that holds a small portion of your loved one's cremated remains.
Cremation Urns - Preserving the Memory of Your Loved One Forever
By: sumeetha Gowda | 17/07/2008
Many people who have chosen to cremate their loved one who passed away make the mistake of taking the cremation urns for granted. It is very important to remember that a cremation urn is more than just an ordinary container. It is a container which contains the ashes of your loved one - of what has remained after he or she has gone. It will keep and hold the memory of your loved one alive not only for this lifetime but for many lifetimes after yours.
5 Most Important Point When Placing Google Adsense
By: Praveen Kumarii | 17/07/2008
I have been adding Google Adsense to my websites for a couple of years now with great success. It's amazing how adsense earnings can turn into another significant monthly income stream with little effort on your part.
More from Dr. Rami Schayek
Performance Measurement, Operational and Financial Performance
By: Dr. Rami Schayek | 26/06/2008 | Management
Empirically, most strategy research studies employ the construct of business performance to examine a variety of strategy content and process issues. This second article in the series concerns the use of financial and operational performance.
Performance Measurement, Organization Theory
By: Dr. Rami Schayek | 12/06/2008 | Management
Murphy et al., (1996) argue that in organization theory, three fundamental theoretical approaches to measuring organizational effectiveness have evolved: goal-based approach, systems approach and multiple constituency approach.
Characteristics of Small Business Definition
By: Dr. Rami Schayek | 29/05/2008 | Small Business
The article objective is to suggest some guidelines that can help reduce the level of ambiguity regarding the definition of small business. The method to reach that objective is through an analysis and characterization of five significant parameters that have been used by different scholars to define small business.
The Ambiguity of Small Business Definition
By: Dr. Rami Schayek | 26/05/2008 | Small Business
A literature review of 23 papers revealed an inconsistency regarding both characterization and definition of small business
Defining Firm Level Entrepreneurship
By: Dr. Rami Schayek | 06/05/2008 | Entrepreneurship
Establishing a common base for defining firm level entrepreneurship
What is Market Orientation, and Does it Help My Small Business Performance?
By: Dr. Rami Schayek | 22/04/2008 | Small Business
Market orientation is one of the most important activities that you should embrace into your small business day to day operation in order to improve its performance. Learn, what is market orientation? And how can you determine whether you’re implementing market orientation philosophy in your small business?
Public Assistance Programs and Small Business Performance
By: Dr. Rami Schayek | 10/04/2008 | Management
It is possible to regard the assistance program as one party, where the other party includes the client. The assistance program’s effectiveness relies on both parties as well as the quality of interaction between them
Human Resources, Financial Resources and Performance in Small Business
By: Dr. Rami Schayek | 25/03/2008 | Human Resources
What is the effect of Human Resources and Financial Resources on Performance in Small Business
Business 
