Business plan feedback for cost effective business processes

Abstract

Business planning encompasses all the goals, strategies and actions to ensure company's business survival, prosperity, and growth. Literature review and analysis of business processes of production systems show that the business plan is considered as a rigid system, even though it is being prepared in a world of constantly changing business conditions. The possibility of correction of a business plan that is being realized in the course of a year is only a theoretical possibility, and the introduction of a feedback system as an element of correction remains only as an idea. The aim of this paper is to propose and introduce a system in the business technology that would be similar to the designing principles for automated technical systems. In the paper an original business planning model with feedback is presented. The model includes planning, monitoring and harmonization of business operations. It is appropriate for unstable conditions too, regarding the essential influences from the business environment, thus adapting the company's operations. It could be used in small- and medium-sized companies, in industries of all types. The model enables the assessment of present and future business results. Verification of the model has been successfully carried out at three levels.