مدیریتی- آمنه مالمیر

Management and Administrative Sciences Review www.absronline.org/masr
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 443-456 (2013)
© 2013 Academy of Business & Scientific Research
*Corresponding author: Fariba Azizzadeh,
Department of Management Esfahan, ‘Science and Research Branch’,
Islamic Azad University, Iran.
E-Mail: sazizzdeh2010@yahoo.com
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 Research Paper
Evaluating and Providing Solutions for Business Plan Implementation
Fariba Azizzadeh1*, Iraj Soltani2, Rasool Sarihi Sfestani3, and Ameneh Malmir4
1, 2, 3&4. Department of Management Esfahan, ‘Science and Research Branch’, Islamic Azad University, Iran.
According to nowadays competitive environment, planning appear to be significant more than ever in order to achieve better production and services, costs reduction, and increasing the performance, quality improvement programs are implemented to increase the production and services quality in small industries. The goal of this paper is to analyze the components of business plan. This study is applicative in its goals, and statistical in implementation. All of the personnel and managers of small industries in 2011 were chosen as the statistical branch. 242 of 8600 people were chosen as the sample size. A questionnaire with 16 questions and reliability coefficient of 97% was used to collect data. Further data analysis was conducted with using a Chi-Square; the research demonstrated that there is a significant correlation between the quality improvement program implementation, personnel attitude toward planning and business plan preparation. But results show that there is not a significant relation between Managers’ attitude toward planning and business plan preparation.
Keywords: Business plan; Quality improvement plan; Small Businesses; Iran;
INTRODUCTION
The usefulness of business plans for new ventures is seen as something as natural to many new or existence firms as the fact that the earth was flat, some 500 years ago (Karlsson and Honig, 2009). But the word 'business plan' almost became popular through the two decade from the mid-1950s to the mid-1970s. In the early 1990s there was a renewed interest in mapping to design more efficient organizational process (Georgells et al. 1998). Today it is extensively endorsed by recent literature. A business plan provides a detailed description of how objectives and goals will be achieved, along with the necessary justification for doing them. It is also a basis for negotiations with the banks and possibly other investors to convince to give creditor a loan. Investors will need sight of business plans before investment that it is minimum document required by them. The process of writing business plans follows established format to organize goals and objectives into a coherent format. The business plans can be defined as operating a company on paper (Hormozi et al. 2002). The business plan is a document that describing the current state and the presupposed future of an organization (Honig and Karlson 2004). A good written business plan usually outlines in 20 to 40 pages an entire business proposal. A business plan is a tool, not a destination.
Certain products or services Sellers and suppliers competition appears to in different forms, but quality is the most significant aspect (fatemi, Qomi, 1991), as well, quality is one of the most important factors which can play a significant role in obtaining required income and ultimately in the
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country (Mehregan, 2000). Quality planning consists of those activity categories which determine the goals and quality requirement and requirement relevant to the quality system component usage (Jamshidy, 2000). Companies are using various quality improving planning to increase their product or services production quality, although some times this plans implementation are facing problems and barriers, identifying these problems and them is the most important duty which organizations require it to achieve a continual quality improvement.
Small business are considered as an important strategy to decease the unemployment, these industries special character are as flexibility, creativeness behavior and quick decision making that are considered as its benefits, and from these industrial defectiveness human and financial and information limitation could be referred (Akyuz, et al., 2006). Establishing quality improvement planning in these require considering these features that could be relevant to the limitation, so in this research by considering special condition a situation of small industries, we tried to identify the problem and difficulty of quality improvement planning establishment.
E-Business is becoming a mainstream part of business planning in many firms (Drew 2003). A threat to an enterprise is, either failing to deploy the Internet at all (Clegg and Tan 2007). Online purpose should be integrated with the overall business purpose (Simmons et al. 2008). Determining the business goals also can provide an evaluation means for them. This paper illustrates business planning as a tool for how to run the firms and seeks its advantages and limitations, along with propose applications. Common this is an article that having a focus on small firm arguments for and against a structure of business plan and some points that entrepreneurs should notice.
E-BUSINESS PLAN
Internet technology is fast becoming an integral part of our lives and a necessary component to building a competitive and successful business. The introduction of e-business was founded in the raid to late 1990s. The Internet has spawned new business models and radically has transformed existing ones (Pant and Ravichandran 2001). E-business usually implies a rethinking of business models (R. Eikebrokk and H. Olsen 2007). An e-business plan is simply a plan that outlines using internet technology to build and grow business. According to above e-business planning emphasizes on technology and the Internet as a vehicle to enhance business operations. It is much the same as any business plans that using the internet as a marketplace, a communications medium, reduce costs, and improve productivity. The studies found a correlation between IT-investments and productivity for small firms (R. Eikebrokk and H. Olsen 2007). Both internal and external factors need to be built into future e-business plans (Clegg and Tan 2007). The e-business plan for a company involves two types of initiative:
1. Business be e-business
2. E-business be a part of business
In the two types of above, it is recommended to follow e-business plan format.
QUALITY IMPROVEMENT PLANNING
According to the researches, various factors are identified as effective factor on quality improvement plans implementation, in this case, (Torani, et al., 2008) survived management and supervisors inadequate commitment, inappropriate organizational structure in relation to the quality system, personnel low cooperation, not paying attention, personnel training and deficiency in organizational communication (Torani et al., 2008).
The most important effective factor on quality improvement plans are as managers support, continual training, and senior managers commitment and presenting strategic planning. And also in the following category, managers and personnel incomplete information is considered as the significant factor in the mentioned program failure (Hamidi & Tabibi, 2004).
According to the results of Vatankhah et al. (2010) research, organizational culture play a greatly influencing role in continual quality improving planning implementation, the more the
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
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organizational culture enjoys the team culture characterization, the more implementation level and quality improvement planning implementation will be, and the more hierarchy culture be stronger, the less success will come out in relation to the quality improving performance (Vatankhah et al., 2010). Nemati concluded that there is a significant relationship between quality management systematic training, organizational culture, personnel expectation and anticipation and establishing these systems (Nemati, 2006). Kebriaei et al. (2004) identified the consumers’ expectation and perception from services quality as an important factor on quality improvement planning implementation (Kebriaei et al., 2004).
In other research in west Azerbaijan province standard administration, quality control responsible capabilities, managers and executive organization cooperation with quality control responsible, financial and human resource facilities, trust to the control responsible capability, quality control custodian attitude, quality control responsible satisfaction, the country economical condition and lack of knowledge were introduced as the effective factors on the quality control system establishment (Doniavy, 2004).
In another research conducted in west Azerbaijan province food industry, manager’s manufacturing unit’s lack of proficiency, lack of expert’s presence in manufacturing units, ownership and management oneness, lack of facilities and competition absence in producing stage as the effective factors on the examined quality management establishment. These research findings shows that three groups of cumbersome evidence, strict structure and absence of control readiness were identified as the establishing and maintaining ISO 9000 quality system barriers (Jamshidi, 2000).
Fuentes-Fuentes et al. (2004) surveyed the environmental barriers according to their results, static environment facing comprehensive quality management implementation with difficulties (Fuentes-Fuentes et al., 2004).
Other research results refer that trust absence in the environment influence the quality improvement plans (Zhao et al., 2004).
Galperin (1999) in surveying the environment, introduced the society culture an important factor, in population-oriented culture like Mexico implementing comprehensive quality management was more successful than individual-oriented culture like Canada. He introduced individual-oriented culture as one of the comprehensive quality management barrier (Galperin et al., 1999). In a research that it conducted in china, South Korea and Taiwan, special cultural dimensions were considered as the influencing factors in quality management effectiveness (Tomas & Wacker, 2010). Countries more avoiding low distrust, the more they are committed to the compliance and conformance of high production quality, also they states that countries enjoys culture with low power gap, individualism and democracy, pay lower attention to their quality planning implementation (Vecchi & Brennan, 2011).
In research conducted by Taveira et al. (2003) organizational work place environment was introduced as an effective factor in resource quality management implementation (Taveira et al., 2003).
Sime Curkovic and Robert Sroufe (2007) believe that appropriate assessing tools absence is the quality plan effectiveness barriers (Curkovic & Sroufe, 2007).
In another research conducted in turkey industries, 32 factors which greatly influence the comprehensive quality management implementation were identified, that the most important mentioned one is the quality improvement and higher income. Also this research results show that if these factors go under control will cause the comprehensive quality management establishment and will increase their success level (Bayazit & Karpak, 2007).
Jayaram et al. (2010) concluded that three structural factor as management commitment, focus on consumer and trust in comprehensive quality management success are very important (Jayaram et al., 2010). Also organizational culture (Irani & Beskesi, love, 2004) is other factor which was studied by different researchers and their influence on successful management plans and quality guarantee implementation was approved.
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ELEMENTS OF A BUSINESS PLAN
Almost, all of business plans or planning process operates inside an established context. Often, this context generates by the manager(s) in the small firms that identifying internal situation and exploiting the external environment. As noted earlier, elements of business plan is similar to any business plan that the following provides a brief overview of its concept.
Introductory sections
Three introductory sections of a business plan contain the front page, and executive summary. These sections provide the reader with important preliminary information about the company and where to locate relevant data within the business plan (Hormozi et al. 2002).
Front page
The front page should say the words 'business plan' and it convenient place to business name, logo and names of authors. Also it is the place, that indicate contact information involve: address, telephone and fax numbers, and E-mail Address. The purpose of a front page is to inform the reader what they are about to read and provide information about how to contact a business (Hormozi et al. 2002).
Contexts
The contexts show an outline of what is to follow in the next page. The purpose of contexts is to make it easy to the reader to manage through the plan and look up the items that providing a detailed titling. For reach this purpose, all business plan pages should be numbered.
Executive summary
The executive summary is the first main section that placing the beginning of the business plan, but it is made as the last thing. Once you have all the research and planning done it is simple to write executive summary that will allow reader to quickly assess the projects merits. A concise, well-written, enthusiastic, executive summary offers a great opportunity to create a positive first impression (H. Cohen and W. Schwartz 2002). It should summarize business and its history, the proposed direction, financing information and company objectives. The purpose of writing executive summary in the business plans is to convince lenders and investors to study the plan further. So it must contain the most important information from the business plan and highlight the key elements of plan.
Business's external situation sections
Three main sections exist in the plan including: Industry, The market, and Legal framework and governance. These sections reflect the business's external situations that be seen as a means of acquiring resources from environment and anticipating future. Fit between planning and environment is important to significantly influence firms’ success (Jin Kim et al. 2008).
Industry
This analyzes the industry in which is company operating on the internet. The Internet is expanding the scope of industries in which a firm must interact in order to achieve competitive advantage (Simmons et al. 2008).The purpose of this part of the plan is to describe the condition of the industry that explaining the most important company strengths within the industry. The industry section should be relevant to the project and it is require to detailing the big picture of the market. An important trend in the industry is the market growth potential because investors would like to break into a growing market than other stagnant markets. In remain of this section, it is important to discuss possible future challenges indicate a realistic view of the market (Hormozi et al. 2002). Intangible firm-specific resources (including communication, intellectual and technological resources) are critical to the success for business in the particular industry (Jin Kim et al. 2008).
Market
The market description usually expands the industry over view. It is essential to have a very concrete description of the market in the plan that should convey the following:
- National, state, and local economic, demographic, reimbursement, and regulatory events;
- Estimated size of the market;
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 443-456
Azizzadeh et al.
- Anticipated annual market growth rate;
- The niche market of the entity writing the business plan within the overall organization (H. Cohen and W. Schwartz 2002).
Competition is a critical part of a plan, because investors would like to know how much entrepreneur has a solid understanding of obstacles in the business. The competitive climate in early businesses existed was difficult to analyze and to survive (Kargaonkar and O’Leary 2006). The most market information includes competitor information, market size, market share, economic make-up of consumers, where and why they purchase, and where they live.
Legal framework and governance
Institutional pressures play an important role in write business plan that involve three kinds: coercive, mimetic, and normative. Coercive pressures are the result of government agencies. Mimetic pressures are the result of modeling organizations behavior after similar other successful organization in their business and normative is educational system pressures (Honig and Karlsson 2004). Establishing legal framework is very important and includes with a discussion of accreditation, licensure, granted, partnership, a sole proprietorship, corporation, and other legal structure. Business plans are widely diffused management tools for new or existence ventures in their environments (Karlsson and Honig 2007). Organizations are establishing new ways of dealing with institutional and legal pressures in the face of environment problems. This section outlines under what circumstances legal counsel may be necessary.
Business's internal situation sections
The business's internal situation sections should provide the reader with information about the company, detailed product or service, a description of the management and organization, marketing plan, financial plan, and technology plan. These sections reflect an evaluation of the business's internal situations.
Company
The company section should begin with the overall company mission statement (Hormozi et al. 2002). A mission is a brief description that should show a clear purpose of the business. It is essential to clearly state the sub-goals. In the other hands, this section of the plan should list each programmatic goal along with its specific sub-goals. The purpose of this part of the plan is to provide background information about the firm.
Product or service
This section thoroughly describes product or service, along with future development and any proprietary features like any patent or copyrights. The establishment of consensus on the requirements and business objective for an eventual service (or product) was an important challenge (Harrison et al. 1994).It is essential to describe in depth product or service using layman's terms to explain industry jargon. It is of great importance that analyzing the product or service from different angles. Furthermore, obtaining capital depend on the ability of entrepreneur to clearly describe the product or service.
Marketing plan
It is here that showing how the plan turns idea into a product or service that people will want to buy. By being better marketing plan, business plan will be more effective (S. Conant and White 1999). E-marketing refers to the use of the internet and related information technologies to conduct marketing activities (Krishnamurthy 2005). A marketing plan discusses designing a website, pricing scheme, target market, and the type of e-marketing and advertising that the company intends to carry out. The pricing scheme explains methods of setting price and how pricing strategy fits with competitive analysis. This section is generally the difficult parts of the business plan for an entrepreneur to develop. According to Scott Shane & Frederic Delmar (2003) completing a business plan before initiating marketing tasks would reduce the hazard of termination of necessary condition to the development of businesses. In spite of the widespread use of the internet as a marketing medium, managers do not have a clear template to plan (Krishnamurthy 2005). In order to make a good marketing plan, it is essential to obtain a thorough knowledge about the market and customers. The global nature of the
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internet requires business owners to think more broadly about their market and customer base. Finally the primary responsibility of marketing is not merely to serve the sales for promotion or to serve this production for placement. More importantly, it is to identify the consumers, to explore new methods for listening to their voice into the development of products and services (Y. P. Chan et al. 2006).
Management team and organization
The business plan has two audiences including management and staff. This section highlights management and staff responsibilities to meet business objectives. Relying heavily on internet technology may also need hiring a private business or web consultant. The most important section of plan is management team, since most investors fed that management directly correlates with the companies' success or failure. Important management issues include the level and place of education, characteristics of the management team, experience, and special skills. The management team not only should have a firm grasp on the technology but it should also be savvy in the management aspects. One of barrier for all of firms is lack of technical skills (Drew 2003). Most small business owner/manager did not have formal IT training and they were not necessarily IT experts (Simmons et al. 2008). This part of business plan should explain how company's management team is organized and describe the primary role of each team member. Also it should demonstrate how team members' skills complement each other. In the other hands, it provides the proposed organizational chart. Additionally diversity of team members is emphasized because diversity can bring with it a range of skills and views to rate the plans (Der Foo et al. 2005).
Financial plan
The income of business products or services can be explained to generate equals the difference between the revenue and the expenses. Estimating costs for business may be one of the most difficult aspects of developing a business plan. They include upfront costs, such as website testing, updating, and enhancing. The cost of the site operation has a significant relationship with the success of the business (Korgaonkar and O’Leary 2006). Most business plans need projections of income and expenses for 3 years, based on past years' performance and future trends (H. Cohen and W. Schwartz 2002). Each year thousands of potentially successful businesses fail because of poor financial plan (Hormozi et al 2002), If the assumptions of financial plan be realistic developed they are more acceptable. The financing plan should provide cash flows, break-even point, income (profit and loss) statements, and balance sheet projections. Two factors are keys in a firm's risks: The ability of company to generate sufficient cash flow and the presence of collateral security to ensure that the investor can recover its funds (Mason and Stark 2004). The financial plans must be keyed to market expectations, since it begin with sales forecast. Finally, the financial section represents a reasonable estimate of company's financial future, based on past financial projections, and market forecast.
Technology plan
Developing a technology section within plan is crucial for nutrition professionals who want their new business to be competitive and up-to-date (Peregrin 2008). Every business relies on technology to stay organized, informed, competitive, and up-to-date. For instance, servers, desktop clients, web developer, networks, and etc are technology requirements. When writing the business plan, it is important to consider what kind of technology the company needs. Quality of the website as it relates to the success or failure of a firm (Korgaonkar and O’Leary 2006).
Risk analysis section
A well-conceived plan anticipates problems and notes how to solve them. In order to increase the credibility of the writer it is strongly recommended that preparing a risk assessment. Nothing is more damaging to a venture than having an investor discover risks the entrepreneur did not know about, does not want to discuss. Identifying and analyzing potential problems will make the venture look more realistic and attractive. Writing several scenarios can be helpful in describe project risks. As a result, writers should describe their assumptions and their contingency
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plans, should their assumptions become invalid (H. Cohn and W. Schwartz 2002).
Appendix section
There are some assumptions in order to anticipate future events in a business plan that should be documented and explained. The purpose of this section is to provide rational behind all assumptions made throughout the business plan. The appendix is placed in the final of the business plan. The appendix also enclose important and relevant to the business information. Appendix information typically includes research data, additional financial and marketing information, diagram, and personal testimonials (Hormozi et al. 2002).
THE ADVANTAGES OF WRITING BUSINESS PLAN
Most investors or business owners are apprehensive about writing business plan, or not. This section discuss about the advantages of writing business plan that convey the following:
Loran A. Nikolai (2006) says: "from an instructor's standpoint, I believe the business plan project is a workable and manageable one" (A. Nikolai, 2006). Business planning increases persistence and success new ventures (Liao and B. Gartner 2006).
Almost all of business plans provided by team and teams would do a superior job on the written plan. A team's strengths were evident in all sections of business plan development (G. Cook et al. 2004). The establishment of consensus on the requirements and business objective for an eventual service (or product) was an important challenge (Collier 2004). By providing business plan by team can used from the advantages of that, like having more idea, the variety of prospect, and etc. Websites are market tools and customer communication to use to maintain a competitive advantage. In order to this, business plan is an essential tool in the all of businesses.
The business plans are requirements for assessing where company is and where it needs to be. In addition it identifies the pathway that will get firm there. Business plans help people to identify a framework for actions, targets, skills and information, evaluating performance, and thoughts about a desired future. So these factors make plans particularly useful. In other hands the plans integrate goals and actions that leading to improve human's behavior because writing plans clarify those goals and objectives.
Writing a business plan allows a decision maker to better analyze complex actions in which many factors interact (Shane and Delmar 2004). This follows the last advantage. An ordered business plan helps decision makers to do complex tasks by focusing on the most necessary information and actions. The plan will gather up the threads from all preparations and in this way help that getting around all aspects at business.
Writing a plan will serve to focus, clarify, and justify a request for scarce resources, and thus, increase its chance of success (H. Cohn and W. Schwartz 2002). Effective planning is essential for moving collaborative programs forward and obtaining required support for funding. A well-developed business plan can provide a coherent story of what future ahead and competitive advantage by analyze risks alternatives. This is a fact that in the project timetable it was possible to move from such disparate starting points to a coherent, flexibility and co-operation of the partners (Collier 2004).
THE LIMITATION OF BUSINESS PLANS
Most of businesses were successfully starting up before business planning first became popular to new businesses in the 1970s (Karlsson and Honig 2009). Even today, many new entrepreneurs demonstrate their capability by starting up their businesses without writing the business plans (Karlsson and Honig 2009). On this basis we discuss about the limitations of business plan.
As noted earlier the external support agencies would require a business plan as a condition of theirs support (M. Richbell et al. 2006). So entrepreneurs often face problems and obstacles associated with obtaining legitimacy, credit and financing (G. Cook 2007). Because of the resource constraints in small businesses, and their subsequent cost sensitivities, they are more reluctant to invest in developing business
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(Simmons et al. 2008). The many small businesses provide the business plans merely for obtaining funds and in response to pressures like to acquire grants, not as an agenda. So it appears that organizations write business plans in order to confirm to institutional and financing pressures.
Entrepreneurs do not know what the future holds but they do know what the day-to-day in their business and environment (D. Hannon and Atherton 1997). Entrepreneurs are who wrote business plans never up-to-dated or rarely referred to their plans after writing them (Karlsson and Honig 2007). A business plan is a working document and it is not meant to be written and them forgotten. Business plans are management tools to achieve goals that should be frequently updated because of environmental changes. But entrepreneurs gradually lost their interest, and stopped updating their plans.
Writing a business plan does not necessarily mean that it will be implemented by manager on a regular basis, and it may be never consulted again (M. Richbell et al. 2006). An effective a business plan should be a dynamic document that supports the long-range plans (Danna and Porche 2008). While many new ventures prepare business plans in place, these plans are frequently not followed or implemented (Karlsson and Honig 2007). Whereas it is a basic management tool that moves collaborative programs forward.
Providing a plan imposes an opportunity cost on the time, energy, money, and resources that might be spent on other more useful activities. As a result, the time spent planning limits the amount of time that the entrepreneur can spend on firm-organizing tasks (Shane and Delmar 2004).
The business plans guarantee success mistakenly inducing managers by providing plans can gain all of goals, whereas as noted earlier they are tools. Some internal obstacles in implementing business plans in small businesses include: lack of professional managers and commitment to the plan, inappropriate contexts, and lack of clarity and focus.
Business plan is normative and static form follows a linear and rational logic (Kyro and Niemi 2008), whereas different types of investor analysis proposals differently (Mason and Stark 2004). They have different funding criteria and emphasis on different kinds of information (Mason and Stark 2004). Different investors will look for different information. They have different expectations, so it is recommended to write information about what they want to know.
BUSINESS PLAN IN THE SMALL FIRMS
An organization with less than 50 employees was named a small firm (M. Richbell et al. 2006). The criteria used to classify a firm as small include; size by number of employees, sales volume, asset size, type of consumer, and market share (Cemil Akyuz et al. 2006). Small firms are recognized as major sources to reduce unemployment (Cemil Akyuz et al. 2006).
The business plan used to take strategic decisions by the small firms, a plan to monitor the activities and use as a strategic document. Small businesses like any other sized businesses need to continuously develop their online business capabilities to survive in the business world (Clegg and Tan 2007). But small businesses generally seldom have an explicit IT plan were more often driven by the owner than by any formal plan (R. Eikebrokk and H. Olsen 2007). Internet has tended to focus on larger firms (Drew 2003). Small firms adopt the internet for business use as a tool for email and surfing the World Wide Web (Simmins et al. 2008). A few small businesses use planning and it is not a feature of the majority of small firms. In the small businesses, owner-manager is involved day-to-day in the business but they usually are not professional managers. There are some reasons for the lack of business planning in the small firms involving: the limited awareness among owner-managers about it, lack business training, not has sufficient financial information, relying on intuitive information, and uncertainty environmental situations. A lack of planning in small firms mean that many of them miss the business opportunities and have poor information to make decisions. So it is recommended to provide a plan by small firms managers. In the other words, writing an effective business planning is seen as an important factor in successfulness of the firm. In the small firms there are two kinds of managers: those who have a
Manag. Adm. Sci. Rev.
ISSN: 2308-1368
Volume: 2, Issue: 5, Pages: 443-456
Azizzadeh et al.
business plan are more successful than who don't have a plan.
Business planning can take informal or formalized form. E-businesses are usually more informal firms (Korgaonkar and O’Leary 2006). Informal form of planning is usually used by small firms whereas larger firm adopt a more formal approach to planning (Cemil Akyuz 2006). There is not coercive to formally provide the planning. Formal planning was not usually used within the small firms whereas the large business managers are aware about the success advantages of planning. In the small firms, formal business plans are often provided to respond to internal and external pressures (financing and legitimacy) (Brinchmann et al. 2008). Informal or not planning be a part of small firms.
As shown in figure 1, there is a three-dimensional process, viz. type of information in business plan, size of business, and form. Whatever the business is been larger than prior size, the business plan will take both more formal form and subjective information. Inversely taking more formal plan cause that the business is been large that leading to more objective information. Without objective information and start-up experience, mortality risk increases (Korgaonkar and O’Leary 2006). But whatever the firm is been large, innovative and flexibility is reduced. Organization theorists have increasingly recognized the limitation of centralized business planning in large organizations (Egelhoff and Frese 2009). So after A point both formality of plan and objective information should be reduced until innovative and flexibility factors is sustained in the firm. The differences between the areas of probability of failure and success are explicated by the degrees of providing business plan. The degree of providing business plan determines the size of business and inverse the size of firm affect the plan.
RESEARCH METHOD
This survey if applicable research and is conducted on survey approach basis, in this method we tried to evaluate individual empirical attitude in order to realize the quality improving planning’s implementation difficulties and limits on the Urmia industrial estates level from managers and personnel’s perspectives.
The surveyed society consist of all the factories located in Urmia industrial estates, according to the statistical reports about 8600 persons are working in these industrial estates, the sampling was carried out by using Cochran formula and led to sample density equal to 240 persons of personnel and managers which were selected accidental method. To collect the data a questionnaires consist of 16 questions were used, which survived the quality improvement programs different aspects. Also the answer domain was classified on basis of Likert classification from very high to very low, for questionnaires durability and data analysis we used the statistical techniques and software’s.
HYPOTHESES AND RESEARCH MODEL
Hypothesis 1: There is a significant relationship between business plan preparation and implementation of quality improving plans.
Hypothesis 2: There is a significant relationship between managers attitude toward planning and business plan preparation.
Hypothesis 3: There is a significant relationship between personnel attitude toward planning and business plan preparation.
FINDINGS
According to the obtained results it be seen a significant relation between implementation of quality improving plans and business plan preparation are accompanied with 0.05 error level (p = 0.000 < 0.05). So the hypothesis 1 will be accepted.
The obtained results shows that there is not a significant relation between Managers’ attitude toward planning and business plan preparation with 0.05 error level (p = 0.627 > 0.05) so hypothesis 2 rejected.
The obtained Information reveals that there is a significant relation between personnel attitude toward planning and business plan preparation with 0.05 error level (p = 0.000 < 0.05) so hypothesis 3 can’t be rejected, either.
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CONCLUSION
A business plan often follows a standard context that comprising five major sections:
1 Introductory sections;
2 The business's external situation sections;
3 The business's internal situation sections;
4 Risk analysis; and
5 The appendix.
These parts of business plan make its serves as a coherent road map that can lead to success. Business planning helps to predict better and to prepare firms for future challenges and to improve firm performance (Brinchmann et al. 2008; Hannon and Atherton 1997).
Both small and large firms have a major impact on society. Business plans particularly have a positive impact on both small and large firm performance. Returning to the advantages and limitation of planning we have now tried to provide a new business plan modeling that considers to size of business. This modeling considers to the type of information (objective-subjective), the form of business plan (formal-informal), and the probability of success or failure. To succeed in using these factors is, of course, a prerequisite for testing this modeling. Perhaps this modeling allows us also provide a well-written business plan according to situation of firms in future.
Other researchers introduce motivation, manager’s support and commitment to play a significant role in quality improving programs (Torani et al. 2008; Hamidi & Tabibi, 2003; Doniavy, 2003; Jayaram et al., 2010), according to this research results show that manager’s attitude toward the planning don’t play a significant role.
According to the experts point of view, personnel internal motivation is a significant factors in quality improving programs implementation (Irani & beskee, 2004), that by analyzing these research results it appears that Personnel attitude toward planning play a significant role in business plan preparation., this means that in case of negative Attitude of personnel’s toward planning, preparation of business plan establishment in the organizations will encounter problems. So as a result, training plans are essential for increasing personnel motivation in order to implement business plan.
In the present research it was determined that quality improvement program implementation is an effective factor which by planning on this ground we can achieve success in preparing business plan, and also on this ground conducting comparative studies with other countries which experienced successful business plan implementation is from recommended solutions.
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APPENDIX
Table 1: Research obtained results
Research hypotheses
p-value
DF
Chi-Square
Hypothesis 1
0.000
16
297.596
Hypothesis 2
0.627
16
13.622
Hypothesis 3
0.000
20
121.103
FIGURES
Objective Formal
The areas of probability A Failure
Of success
Type of information success Form
In business plan
The areas of
Probability of failure
Subjective Informal
Small size of business Large
Figure 1: The degree of providing business plan
Figure 2: The research model Dependent variables - Business plan preparation Independent variables - Implementation of quality improving plans - Managers’ attitude toward planning