About Micro Economics Research Proposal Example | Topics and Well Written Essays - 1250 words

About Micro Economics - Research Proposal Example and also helps facing the competition developing in any market by focusing on the customers’ needs and the supply and demand issues (Starr, 2007; McNamara, 2008). The major steps involved in developing a strategic business plan include the identification of the time to make such plan. A strategic business plan can be developed anytime when the business expects any kind of restructuring or expansion and the future of the business comes to any questionable position. The strategic business plan also helps in analyzing the past and current operations of the business running successfully to determine the future improvements. The strategic business plan is helpful to protect business from running into the phase of crisis from a successful state (Hilty, n.d.). After deciding the need for developing strategic business plan the organization needs to analyze the situation outside the organization, i.e., the background information of the business focusing on the market situation, available resources, management system and the existing centers of profit. The analysis of cash flow and expenses, the data of debts and production costs, financial, capital an d labor efficiency, etc. makes the next step of strategic planning. This can best be done in strategic business planning through the SWOT analysis, i.e., the in depth investigation of the situation of the organization including identification of its strengths, weaknesses, opportunities and threats. While strengths and weaknesses are the internal characteristics of a business the opportunities and threats are the external components which the organization itself does not have any control over. It is applicable in all business sectors when a very limited time is available to address a complex strategic situation. This step helps in providing a large amount of external and internal information relevant to the business situation and the aspects requiring immediate attention. These four aspects related to any business helps in