Planning in SMEs.

• Main Authors: Goh, Teck Khoon., Lim, Emy Soo Ling., Koh, Chun Yuan.
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: http://hdl.handle.net/10356/51956
• Institution: Nanyang Technological University

The objective of our project is to study the incidence of formal strategic planning and outsider-based planning on the planning activities of the SmaU and Medium Enterprises (SMEs). We also research into the impact of these two planning activities on the effectiveness of the businesses. The research data was gathered through a series of interviews and questionnaires conducted with the SMEs of the Food and Beverages Industry. The results of our study, with regards to the extent of formal strategic planning activities engaged, was inconclusive, as there was insufficient evidence to infer that SMEs do engage in it. On the other hand, we did find that a majority of SMEs do engage in outsider-based planning. A descriptive analysis of the contribution of planning to firm performance, based on four economic variables, revealed that formal strategic planning did not yield a positive relationship with firm effectiveness. As for outsider-based planning, the analysis also showed no positive correlation between outsider-based planning and firm effectiveness.