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Entrepreneurship Development, 22032

Experiment No. : 10
Title: Prepare a set of short term, medium and long term goals for starting a chosen small scale
enterprise

EQUIPMENTS: Computer system with Microsoft MS - Word

THEORY:
Business owners develop plans to reach their overall goals, and they usually find it useful to separate
planning into phases. This allows you to track immediate improvements while evaluating progress
toward eventual goals and targets. The different time frames of the planning process place the focus
on time-sensitive aspects of the company's structure and environment. You can differentiate planning
based on the time frames of the inputs and expected outcomes.

Strategic Planning Characteristics

Many businesses develop strategic planning within a short-term, medium-term and long-term
framework. Short-term usually involves processes that show results within a year. Companies aim
medium-term plans at results that take several years to achieve. Long-term plans include the overall
goals of the company set four or five years in the future and usually are based on reaching the medium-
term targets. Planning in this way helps you complete short-term tasks while keeping longer-term
goals in mind.
Short-Term Planning

Short-term planning looks at the characteristics of the company in the present and develops strategies
for improving them. Examples are the skills of the employees and their attitudes. The condition of
production equipment or product quality problems are also short-term concerns.

To address these issues, you put in place short-term solutions to address problems. Employee training
courses, equipment servicing and quality fixes are short-term solutions. These solutions set the stage
for addressing problems more comprehensively in the longer term.
Medium-Term Planning

Medium-term planning applies more permanent solutions to short-term problems. If training courses
for employees solved problems in the short term, companies schedule training programs for the

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medium term. If there are quality issues, the medium-term response is to revise and strengthen the
company's quality control program.

Where a short-term response to equipment failure is to repair the machine, a medium-term solution is
to arrange for a service contract. Medium-term planning implements policies and procedures to ensure
that short-term problems don't recur.
Long-Term Planning

In the long term, companies want to solve problems permanently and to reach their overall targets.
Long-term planning reacts to the competitive situation of the company in its social, economic and
political environment and develops strategies for adapting and influencing its position to achieve long-
term goals. It examines major capital expenditures such as purchasing equipment and facilities, and
implements policies and procedures that shape the company's profile to match top management's ideas.

When short-term and medium-term planning is successful, long-term planning builds on those
achievements to preserve accomplishments and ensure continued progress.
Revenue Goals and Supporting Goals

If your long-term revenue goal is to double revenue by the end of the current fiscal year, another
example of a supporting short-term goal is to contract an advertising consultant for one month to help
you analyze and capitalize on your customer's buying trends. Another short-term goal example is to
spend the next month learning your primary competition and brainstorming on what you offer that
they don't. You can us this research and design a new advertising campaign that highlights the unique
points about your business or products.
Customer Service Goals

One long-term goal for customer service would be achieving at least 95 percent positive customer
feedback. An example of a supporting short-term goal is to redesign the customer service research
process to include new questionnaires and incentives, such as monthly drawings for free products or
discounts on future purchases for customers who take the time to respond.
Employee Appreciation Goals

Some businesses establish a long-term employee appreciation goal of awarding an employee of the
year award to the employee who provides the most creative input during the year in terms of practical
ideas to improve the company. Supporting short-term goals are to award employee of the month

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designations each month throughout the year to mark the progression of creative input, and to include
more employees in the reward process than is possible with a single annual award.
Community Outreach Goals

Building the company's name recognition within the community through community outreach projects
is a popular long-term goal for businesses. Examples of short-term supporting goals are to reward
employees who volunteer with designated community programs with additional time off, bonuses or
gift cards. Another short-term supporting goal is to choose one or two high-profile annual charity
events to sponsor.

Website Traffic Goals

A long-term goal regarding web traffic is to increase traffic to your company's site by at least 50
percent by the end of the current fiscal year. Supporting short-term goals are to research and purchase
web traffic analysis software to better pinpoint current traffic trends, to hire a web consultant for one
month to propose and implement programming changes to make the site appeal to a broader audience
than your traffic trend research suggests currently exist.

Another example of a short-term goal is to select a medium for advertising your site other than the
Web, such as a bus campaign where you advertise your site address on the side of city buses for one
month, or billboards, where you lease a billboard in a conspicuous place in town for one month.
Conclusion: Studied to prepare a set of short term, medium and long term goals for starting a chosen
small scale enterprise

Marks obtained Dated sign. Of Teacher

Process Related(10) Product Related(15) Total(25)

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