Introduction
The role of strategic planning is considered as the critical element to success. Various definitions and models of strategy have been developed to enable the user to understand the concept and its impact a firm. However, there is no best practice definition or model, which can be applied to entrepreneur venture in general. Most definitions imply that strategic planning has an impact on long-term success of entrepreneurial firms. In particular, it is impacting on in the ventures’ survival and growth (Huang & Dai 2007). Much evidence exists to support this argument. This paper seeks to critically discuss and analyzing the role of strategic planning in entrepreneurial firm sector; including it benefits, drawbacks and challenges it brings to entrepreneur. This essay will begin with the entrepreneur’s background that we selected, after that is a brief introduction to the underlying theories in strategic planning. Following on from this will the text will review the relevant literature in the area and propose the summary of the topic.
Entrepreneur Background
The selected entrepreneur is Luis Wang who is the founder of Utopia. Luis Wang started his business since 2001. Since then, its popularity with the Australian market has been an overwhelming success. He created friendly environment and unique decorations in their shop that is attractive to the costumer. Utopia continues to build and develop stores in many more locations across the Perth, Western Australian. They are now the most popular bubble teashop in Perth with 9 stores (Utopia 2011).
Strategic Planning
Strategic planning is “the formulation of long range plans for the effective management of environmental opportunities and threats in light of a venture’s strength and weaknesses” (Frederick and Kuratko 2010, 470). Strategic planning serves a variety of purposes in business, including defines the clear objectives of the firms; where the business is going and focus point. French and Kelly...