Module 15: Control

What does control mean in the business setting, learning outcomes.

  • Explain what control means in a business setting.
  • Describe the benefits and costs of organizational control.

Figures of businesspeople in front of gears with the words time, place, objects, quantity, costs, quality, and customers in different areas of the gears

Control in general is a device or mechanism used to regulate or guide the operation of a machine, apparatus, or system. Control in a business setting, or organizational control , involves the processes and procedures that regulate, guide, and protect an organization. It is one of the four primary managerial functions, along with planning, organizing, and leading.

One common type of control companies use is a set of financial policies. These policies may not be communicated to all employees, but they exist for all but the smallest firms. Controls start with managing cash. For example, controls limit check-writing authority and the use of company credit cards. For example, a firm may require two signatures on checks more than $10,000 or have one person to log journal entries and another person to review the entries. These policies help prevent fraud and errors as well as monitor whether company goals are being met. In larger companies, each department manager submits an annual budget and profit-and-loss statements.

The most common style, or approach, of organizational control is top-down control. With top-down control, decisions are made by high-level executives, and information flows down to the lower-level employees of the organization.

The three types of organizational control include the familiar feedback, proactive, and concurrent controls. We’ll talk about these more later, but first, let’s explore some of the benefits and disadvantages of organizational control.

Practice Question

Implementing organizational control.

Organizational control involves developing rules, procedures, or other protocols for directing the work of employees and processes as well as monitoring the work. Organizational control is an important function because it helps identify errors and deviation from standards so that corrective actions can be taken to achieve goals. The purpose of organizational control is to ensure that a specific function is performed according to established standards.

Organizational control has many varied benefits, including improved communication, financial stability, increased productivity and efficiency, help in meeting annual goals, improved morale, legal compliance, improved quality control, and fraud and error prevention.

Controls help to better define an organization’s objectives so that employees and resources are focused on them. They safeguard against misuse of resources and facilitate corrective measures. Having good records means management will better understand what happened in the past and where change can be effective.

All businesses need controls. Even sole proprietor businesses must keep records for tax reporting. Public companies are legally required to have extensive controls to protect stockholders, and good controls help a company to raise funds through stock and debt issuance.

Employee morale may be higher when workers see that management is paying attention and knows what it is doing. As an earlier module discussed, better morale means better productivity. Better controls can mean more freedom and responsibility for employees. Management is able to step back a little, knowing that the controls will flag any exceptions.

Toyota has made control a competitive advantage. As an article in the Harvard Business Review says, “Toyota’s way is to measure everything—even the noise that car doors make when they open and close as workers perform their final inspections on newly manufactured automobiles.” [1] After bad publicity over unusual brake issues, Toyota was again at the top of Consumer Reports’ 2016 reliability report. [2]

Disadvantages

Even the simplest control is an added expense. Some systems can be very expensive, so management must weigh the cost versus the benefit for each control. Banks spend billions on controls, but it is worthwhile for the large banks, because they handle trillions and their profits are still in the billions.

A control mentality can lead to overstaffing and unsustainable costs for some businesses. Community banks, for example, feel the burden of new regulations on the banking industry more heavily than the largest nationwide banks. Research from the Federal Reserve Bank of Minneapolis, Minnesota, and quoted in the New York Times “suggests that adding just two members to the compliance department would make a third of the smallest banks unprofitable.” [3]

A less obvious expense is maintaining the controls. Systems need continuous updating as the organization changes. If they are not maintained, the controls may become ineffective.

Controls can become a blind spot for management. Overreliance on controls may lead to relaxation in supervision and allow manipulation of accounts and assets. Employees tend to follow the letter of rules, not the intent, so management needs to check in regularly on how controls are actually operating.

A rigid implementation may lead to a slowdown in the operation of the business. At Freddie Mac, a financial services company, the new product approval process required 25 signatures and took more than a year. The new opportunities in the market disappeared before products could be approved.

The wrong controls may expose the firm to more errors and fraud. And employees will be frustrated if the controls are cumbersome.

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  • Thomas A. Stewart and Anand P. Raman, “Lessons from Toyota's Long Drive,” Harvard Business Review, July–August 2007, https://hbr.org/2007/07/lessons-from-toyotas-long-drive . ↵
  • Michelle Naranjo, “CR's Car Reliability Survey Reveals Shuffles in Brand and Model Rankings,” Consumer Reports, October 24, 2016, https://www.consumerreports.org/car-reliability/car-reliability-survey-2016/ . ↵
  • Marshall Lux and Robert Greene, “Dodd-Frank Is Hurting Community Banks,” New York Times, last updated April 14, 2016, https://www.nytimes.com/roomfordebate/2016/04/14/has-dodd-frank-eliminated-the-dangers-in-the-banking-system/dodd-frank-is-hurting-community-banks . ↵
  • What Does Control Mean in the Business Setting?. Authored by : Talia Lambarki and Lumen Learning. License : CC BY: Attribution
  • Image: Logistics. Authored by : geralt. Located at : https://pixabay.com/en/logistics-personal-group-gears-877568/ . License : CC0: No Rights Reserved

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Control plan (Six Sigma) — definition and example

A woman in an office optimizes a business' organization process with Six Sigma.

Project managers and business executives are always looking to optimize organizational processes. If you’re in a leadership role, you probably already know about Six Sigma, a continuous improvement framework that’s part of the Lean methodology. You may even be familiar with the five stages of Six Sigma — Define, Measure, Analyze, Improve, and Control (DMAIC).

A control plan is a crucial element of that last stage and is designed to standardize processes established in the four previous stages. Understanding control plans can help you make lasting process changes that improve your organization.

In this article, you’ll learn what a control plan is, including an example, so you can continue your educational journey into Six Sigma. This post will cover:

  • What a control plan is

Control plan example

  • How to get started with Six Sigma

What is a control plan?

A control plan is a document that provides guidance on how to monitor a process. Control plans are part of the fifth and final phase of the Six Sigma process improvement framework. They help businesses standardize newly adopted processes to increase their uptake and longevity.

Control plans should contain:

  • An outline of what the process should look like
  • Key variables or metrics to measure the process
  • Information on how frequently to measure these variables
  • What to do if the results stray from the desired outcomes

The goal of the control plan is to provide guidance so that a process can be successfully replicated over time by different individuals. Originally created for manufacturing, Six Sigma and the Lean methodology are now used in a range of industries including healthcare, education, and the service sector.

There are a variety of control plan formats, but some of the basic information would typically include the industry that the plan is for, the company’s goal, and how the sections of the plan help the company track its progress.

For example, a control plan for a manufacturing product might contain:

  • The name of the product
  • Its key characteristics, such as size, color, and material
  • How to measure those characteristics, including the tool needed
  • The acceptable range — also called the tolerance range — for each characteristic
  • The testing frequency, possibly as a time period or amount
  • How to visualize and evaluate the measurements, perhaps in a chart
  • A specific person who will oversee quality control
  • Contingencies for particular or unexpected situations

A graphic shows a control plan to follow and measure the Six Sigma process.

While this example is for a manufacturing product, the same structure and approach could be applied to any business process. Remember, maintaining hard-won gains is as important as making them in the first place. Project teams need to put guidelines in place to ensure processes stay efficient, for instance by creating monitoring and response plans. Process owners should then make sure process changes are maintained and kept current with best practices.

Get started with Six Sigma

Control is one of the critical steps in the Six Sigma framework because it ensures that the processes you’ve refined will be maintained into the future. Without a control plan, processes could revert back to the way they were before, resulting in a loss of essential progress.

If Six Sigma and Lean management sound like they might be right for your business, and you’re interested in learning more, check out one of the additional resources below:

  • Learn about Six Sigma to Improve Workplace Processes
  • Lean Project Management
  • A Guide to Lean Management

Adobe can help

Adobe Workfront is enterprise work management software that can help you adopt or expand Lean Six Sigma, optimizing your workflow and bringing organization to your teams.

Take a product tour or watch the overview video to learn more about Workfront.

https://business.adobe.com/blog/basics/what-is-six-sigma

https://business.adobe.com/blog/basics/lean

https://business.adobe.com/blog/basics/lean-management

What is a Business Plan? Definition, Tips, and Templates

AJ Beltis

Published: June 07, 2023

In an era where more than 20% of small enterprises fail in their first year, having a clear, defined, and well-thought-out business plan is a crucial first step for setting up a business for long-term success.

Business plan graphic with business owner, lightbulb, and pens to symbolize coming up with ideas and writing a business plan.

Business plans are a required tool for all entrepreneurs, business owners, business acquirers, and even business school students. But … what exactly is a business plan?

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In this post, we'll explain what a business plan is, the reasons why you'd need one, identify different types of business plans, and what you should include in yours.

What is a business plan?

A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. It outlines a company's go-to-market plan, financial projections, market research, business purpose, and mission statement. Key staff who are responsible for achieving the goals may also be included in the business plan along with a timeline.

The business plan is an undeniably critical component to getting any company off the ground. It's key to securing financing, documenting your business model, outlining your financial projections, and turning that nugget of a business idea into a reality.

What is a business plan used for?

The purpose of a business plan is three-fold: It summarizes the organization’s strategy in order to execute it long term, secures financing from investors, and helps forecast future business demands.

Business Plan Template [ Download Now ]

businessplan_2

Working on your business plan? Try using our Business Plan Template . Pre-filled with the sections a great business plan needs, the template will give aspiring entrepreneurs a feel for what a business plan is, what should be in it, and how it can be used to establish and grow a business from the ground up.

Purposes of a Business Plan

Chances are, someone drafting a business plan will be doing so for one or more of the following reasons:

1. Securing financing from investors.

Since its contents revolve around how businesses succeed, break even, and turn a profit, a business plan is used as a tool for sourcing capital. This document is an entrepreneur's way of showing potential investors or lenders how their capital will be put to work and how it will help the business thrive.

All banks, investors, and venture capital firms will want to see a business plan before handing over their money, and investors typically expect a 10% ROI or more from the capital they invest in a business.

Therefore, these investors need to know if — and when — they'll be making their money back (and then some). Additionally, they'll want to read about the process and strategy for how the business will reach those financial goals, which is where the context provided by sales, marketing, and operations plans come into play.

2. Documenting a company's strategy and goals.

A business plan should leave no stone unturned.

Business plans can span dozens or even hundreds of pages, affording their drafters the opportunity to explain what a business' goals are and how the business will achieve them.

To show potential investors that they've addressed every question and thought through every possible scenario, entrepreneurs should thoroughly explain their marketing, sales, and operations strategies — from acquiring a physical location for the business to explaining a tactical approach for marketing penetration.

These explanations should ultimately lead to a business' break-even point supported by a sales forecast and financial projections, with the business plan writer being able to speak to the why behind anything outlined in the plan.

business plan control meaning

Free Business Plan Template

The essential document for starting a business -- custom built for your needs.

  • Outline your idea.
  • Pitch to investors.
  • Secure funding.
  • Get to work!

You're all set!

Click this link to access this resource at any time.

Free Business Plan [Template]

Fill out the form to access your free business plan., 3. legitimizing a business idea..

Everyone's got a great idea for a company — until they put pen to paper and realize that it's not exactly feasible.

A business plan is an aspiring entrepreneur's way to prove that a business idea is actually worth pursuing.

As entrepreneurs document their go-to-market process, capital needs, and expected return on investment, entrepreneurs likely come across a few hiccups that will make them second guess their strategies and metrics — and that's exactly what the business plan is for.

It ensures an entrepreneur's ducks are in a row before bringing their business idea to the world and reassures the readers that whoever wrote the plan is serious about the idea, having put hours into thinking of the business idea, fleshing out growth tactics, and calculating financial projections.

4. Getting an A in your business class.

Speaking from personal experience, there's a chance you're here to get business plan ideas for your Business 101 class project.

If that's the case, might we suggest checking out this post on How to Write a Business Plan — providing a section-by-section guide on creating your plan?

What does a business plan need to include?

  • Business Plan Subtitle
  • Executive Summary
  • Company Description
  • The Business Opportunity
  • Competitive Analysis
  • Target Market
  • Marketing Plan
  • Financial Summary
  • Funding Requirements

1. Business Plan Subtitle

Every great business plan starts with a captivating title and subtitle. You’ll want to make it clear that the document is, in fact, a business plan, but the subtitle can help tell the story of your business in just a short sentence.

2. Executive Summary

Although this is the last part of the business plan that you’ll write, it’s the first section (and maybe the only section) that stakeholders will read. The executive summary of a business plan sets the stage for the rest of the document. It includes your company’s mission or vision statement, value proposition, and long-term goals.

3. Company Description

This brief part of your business plan will detail your business name, years in operation, key offerings, and positioning statement. You might even add core values or a short history of the company. The company description’s role in a business plan is to introduce your business to the reader in a compelling and concise way.

4. The Business Opportunity

The business opportunity should convince investors that your organization meets the needs of the market in a way that no other company can. This section explains the specific problem your business solves within the marketplace and how it solves them. It will include your value proposition as well as some high-level information about your target market.

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5. Competitive Analysis

Just about every industry has more than one player in the market. Even if your business owns the majority of the market share in your industry or your business concept is the first of its kind, you still have competition. In the competitive analysis section, you’ll take an objective look at the industry landscape to determine where your business fits. A SWOT analysis is an organized way to format this section.

6. Target Market

Who are the core customers of your business and why? The target market portion of your business plan outlines this in detail. The target market should explain the demographics, psychographics, behavioristics, and geographics of the ideal customer.

7. Marketing Plan

Marketing is expansive, and it’ll be tempting to cover every type of marketing possible, but a brief overview of how you’ll market your unique value proposition to your target audience, followed by a tactical plan will suffice.

Think broadly and narrow down from there: Will you focus on a slow-and-steady play where you make an upfront investment in organic customer acquisition? Or will you generate lots of quick customers using a pay-to-play advertising strategy? This kind of information should guide the marketing plan section of your business plan.

8. Financial Summary

Money doesn’t grow on trees and even the most digital, sustainable businesses have expenses. Outlining a financial summary of where your business is currently and where you’d like it to be in the future will substantiate this section. Consider including any monetary information that will give potential investors a glimpse into the financial health of your business. Assets, liabilities, expenses, debt, investments, revenue, and more are all useful adds here.

So, you’ve outlined some great goals, the business opportunity is valid, and the industry is ready for what you have to offer. Who’s responsible for turning all this high-level talk into results? The "team" section of your business plan answers that question by providing an overview of the roles responsible for each goal. Don’t worry if you don’t have every team member on board yet, knowing what roles to hire for is helpful as you seek funding from investors.

10. Funding Requirements

Remember that one of the goals of a business plan is to secure funding from investors, so you’ll need to include funding requirements you’d like them to fulfill. The amount your business needs, for what reasons, and for how long will meet the requirement for this section.

Types of Business Plans

  • Startup Business Plan
  • Feasibility Business Plan
  • Internal Business Plan
  • Strategic Business Plan
  • Business Acquisition Plan
  • Business Repositioning Plan
  • Expansion or Growth Business Plan

There’s no one size fits all business plan as there are several types of businesses in the market today. From startups with just one founder to historic household names that need to stay competitive, every type of business needs a business plan that’s tailored to its needs. Below are a few of the most common types of business plans.

For even more examples, check out these sample business plans to help you write your own .

1. Startup Business Plan

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As one of the most common types of business plans, a startup business plan is for new business ideas. This plan lays the foundation for the eventual success of a business.

The biggest challenge with the startup business plan is that it’s written completely from scratch. Startup business plans often reference existing industry data. They also explain unique business strategies and go-to-market plans.

Because startup business plans expand on an original idea, the contents will vary by the top priority goals.

For example, say a startup is looking for funding. If capital is a priority, this business plan might focus more on financial projections than marketing or company culture.

2. Feasibility Business Plan

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This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing organization. This comprehensive plan may include:

  • A detailed product description
  • Market analysis
  • Technology needs
  • Production needs
  • Financial sources
  • Production operations

According to CBInsights research, 35% of startups fail because of a lack of market need. Another 10% fail because of mistimed products.

Some businesses will complete a feasibility study to explore ideas and narrow product plans to the best choice. They conduct these studies before completing the feasibility business plan. Then the feasibility plan centers on that one product or service.

3. Internal Business Plan

businessplan_5

Internal business plans help leaders communicate company goals, strategy, and performance. This helps the business align and work toward objectives more effectively.

Besides the typical elements in a startup business plan, an internal business plan may also include:

  • Department-specific budgets
  • Target demographic analysis
  • Market size and share of voice analysis
  • Action plans
  • Sustainability plans

Most external-facing business plans focus on raising capital and support for a business. But an internal business plan helps keep the business mission consistent in the face of change.

4. Strategic Business Plan

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Strategic business plans focus on long-term objectives for your business. They usually cover the first three to five years of operations. This is different from the typical startup business plan which focuses on the first one to three years. The audience for this plan is also primarily internal stakeholders.

These types of business plans may include:

  • Relevant data and analysis
  • Assessments of company resources
  • Vision and mission statements

It's important to remember that, while many businesses create a strategic plan before launching, some business owners just jump in. So, this business plan can add value by outlining how your business plans to reach specific goals. This type of planning can also help a business anticipate future challenges.

5. Business Acquisition Plan

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Investors use business plans to acquire existing businesses, too — not just new businesses.

A business acquisition plan may include costs, schedules, or management requirements. This data will come from an acquisition strategy.

A business plan for an existing company will explain:

  • How an acquisition will change its operating model
  • What will stay the same under new ownership
  • Why things will change or stay the same
  • Acquisition planning documentation
  • Timelines for acquisition

Additionally, the business plan should speak to the current state of the business and why it's up for sale.

For example, if someone is purchasing a failing business, the business plan should explain why the business is being purchased. It should also include:

  • What the new owner will do to turn the business around
  • Historic business metrics
  • Sales projections after the acquisition
  • Justification for those projections

6. Business Repositioning Plan

businessplan_6 (1)

When a business wants to avoid acquisition, reposition its brand, or try something new, CEOs or owners will develop a business repositioning plan.

This plan will:

  • Acknowledge the current state of the company.
  • State a vision for the future of the company.
  • Explain why the business needs to reposition itself.
  • Outline a process for how the company will adjust.

Companies planning for a business reposition often do so — proactively or retroactively — due to a shift in market trends and customer needs.

For example, shoe brand AllBirds plans to refocus its brand on core customers and shift its go-to-market strategy. These decisions are a reaction to lackluster sales following product changes and other missteps.

7. Expansion or Growth Business Plan

When your business is ready to expand, a growth business plan creates a useful structure for reaching specific targets.

For example, a successful business expanding into another location can use a growth business plan. This is because it may also mean the business needs to focus on a new target market or generate more capital.

This type of plan usually covers the next year or two of growth. It often references current sales, revenue, and successes. It may also include:

  • SWOT analysis
  • Growth opportunity studies
  • Financial goals and plans
  • Marketing plans
  • Capability planning

These types of business plans will vary by business, but they can help businesses quickly rally around new priorities to drive growth.

Getting Started With Your Business Plan

At the end of the day, a business plan is simply an explanation of a business idea and why it will be successful. The more detail and thought you put into it, the more successful your plan — and the business it outlines — will be.

When writing your business plan, you’ll benefit from extensive research, feedback from your team or board of directors, and a solid template to organize your thoughts. If you need one of these, download HubSpot's Free Business Plan Template below to get started.

Editor's note: This post was originally published in August 2020 and has been updated for comprehensiveness.

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What Is a Business Plan? Definition and Planning Essentials Explained

Posted february 21, 2022 by kody wirth.

business plan control meaning

What is a business plan? It’s the roadmap for your business. The outline of your goals, objectives, and the steps you’ll take to get there. It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance. 

A business plan can help you explore ideas, successfully start a business, manage operations, and pursue growth. In short, a business plan is a lot of different things. It’s more than just a stack of paper and can be one of your most effective tools as a business owner. 

Let’s explore the basics of business planning, the structure of a traditional plan, your planning options, and how you can use your plan to succeed. 

What is a business plan?

A business plan is a document that explains how your business operates. It summarizes your business structure, objectives, milestones, and financial performance. Again, it’s a guide that helps you, and anyone else, better understand how your business will succeed.  

Why do you need a business plan?

The primary purpose of a business plan is to help you understand the direction of your business and the steps it will take to get there. Having a solid business plan can help you grow up to 30% faster and according to our own 2021 Small Business research working on a business plan increases confidence regarding business health—even in the midst of a crisis. 

These benefits are directly connected to how writing a business plan makes you more informed and better prepares you for entrepreneurship. It helps you reduce risk and avoid pursuing potentially poor ideas. You’ll also be able to more easily uncover your business’s potential. By regularly returning to your plan you can understand what parts of your strategy are working and those that are not.

That just scratches the surface for why having a plan is valuable. Check out our full write-up for fifteen more reasons why you need a business plan .  

What can you do with your plan?

So what can you do with a business plan once you’ve created it? It can be all too easy to write a plan and just let it be. Here are just a few ways you can leverage your plan to benefit your business.

Test an idea

Writing a plan isn’t just for those that are ready to start a business. It’s just as valuable for those that have an idea and want to determine if it’s actually possible or not. By writing a plan to explore the validity of an idea, you are working through the process of understanding what it would take to be successful. 

The market and competitive research alone can tell you a lot about your idea. Is the marketplace too crowded? Is the solution you have in mind not really needed? Add in the exploration of milestones, potential expenses, and the sales needed to attain profitability and you can paint a pretty clear picture of the potential of your business.

Document your strategy and goals

For those starting or managing a business understanding where you’re going and how you’re going to get there are vital. Writing your plan helps you do that. It ensures that you are considering all aspects of your business, know what milestones you need to hit, and can effectively make adjustments if that doesn’t happen. 

With a plan in place, you’ll have an idea of where you want your business to go as well as how you’ve performed in the past. This alone better prepares you to take on challenges, review what you’ve done before, and make the right adjustments.

Pursue funding

Even if you do not intend to pursue funding right away, having a business plan will prepare you for it. It will ensure that you have all of the information necessary to submit a loan application and pitch to investors. So, rather than scrambling to gather documentation and write a cohesive plan once it’s relevant, you can instead keep your plan up-to-date and attempt to attain funding. Just add a use of funds report to your financial plan and you’ll be ready to go.

The benefits of having a plan don’t stop there. You can then use your business plan to help you manage the funding you receive. You’ll not only be able to easily track and forecast how you’ll use your funds but easily report on how it’s been used. 

Better manage your business

A solid business plan isn’t meant to be something you do once and forget about. Instead, it should be a useful tool that you can regularly use to analyze performance, make strategic decisions, and anticipate future scenarios. It’s a document that you should regularly update and adjust as you go to better fit the actual state of your business.

Doing so makes it easier to understand what’s working and what’s not. It helps you understand if you’re truly reaching your goals or if you need to make further adjustments. Having your plan in place makes that process quicker, more informative, and leaves you with far more time to actually spend running your business.

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What should your business plan include?

The content and structure of your business plan should include anything that will help you use it effectively. That being said, there are some key elements that you should cover and that investors will expect to see. 

Executive summary

The executive summary is a simple overview of your business and your overall plan. It should serve as a standalone document that provides enough detail for anyone—including yourself, team members, or investors—to fully understand your business strategy. Make sure to cover the problem you’re solving, a description of your product or service, your target market, organizational structure, a financial summary, and any necessary funding requirements.

This will be the first part of your plan but it’s easiest to write it after you’ve created your full plan.

Products & Services

When describing your products or services, you need to start by outlining the problem you’re solving and why what you offer is valuable. This is where you’ll also address current competition in the market and any competitive advantages your products or services bring to the table. Lastly, be sure to outline the steps or milestones that you’ll need to hit to successfully launch your business. If you’ve already hit some initial milestones, like taking pre-orders or early funding, be sure to include it here to further prove the validity of your business. 

Market analysis

A market analysis is a qualitative and quantitative assessment of the current market you’re entering or competing in. It helps you understand the overall state and potential of the industry, who your ideal customers are, the positioning of your competition, and how you intend to position your own business. This helps you better explore the long-term trends of the market, what challenges to expect, and how you will need to initially introduce and even price your products or services.

Check out our full guide for how to conduct a market analysis in just four easy steps .  

Marketing & sales

Here you detail how you intend to reach your target market. This includes your sales activities, general pricing plan, and the beginnings of your marketing strategy. If you have any branding elements, sample marketing campaigns, or messaging available—this is the place to add it. 

Additionally, it may be wise to include a SWOT analysis that demonstrates your business or specific product/service position. This will showcase how you intend to leverage sales and marketing channels to deal with competitive threats and take advantage of any opportunities.

Check out our full write-up to learn how to create a cohesive marketing strategy for your business. 

Organization & management

This section addresses the legal structure of your business, your current team, and any gaps that need to be filled. Depending on your business type and longevity, you’ll also need to include your location, ownership information, and business history. Basically, add any information that helps explain your organizational structure and how you operate. This section is particularly important for pitching to investors but should be included even if attempted funding is not in your immediate future.

Financial projections

Possibly the most important piece of your plan, your financials section is vital for showcasing the viability of your business. It also helps you establish a baseline to measure against and makes it easier to make ongoing strategic decisions as your business grows. This may seem complex on the surface, but it can be far easier than you think. 

Focus on building solid forecasts, keep your categories simple, and lean on assumptions. You can always return to this section to add more details and refine your financial statements as you operate. 

Here are the statements you should include in your financial plan:

  • Sales and revenue projections
  • Profit and loss statement
  • Cash flow statement
  • Balance sheet

The appendix is where you add additional detail, documentation, or extended notes that support the other sections of your plan. Don’t worry about adding this section at first and only add documentation that you think will be beneficial for anyone reading your plan.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. So, to get the most out of your plan, it’s best to find a format that suits your needs. Here are a few common business plan types worth considering. 

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you’ll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or any other situation where the full details of your business must be understood by another individual. 

This type of business plan follows the outline above and can be anywhere from 10-50 pages depending on the amount of detail included, the complexity of your business, and what you include in your appendix. We recommend only starting with this business plan format if you plan to immediately pursue funding and already have a solid handle on your business information. 

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea. 

The structure ditches a linear structure in favor of a cell-based template. It encourages you to build connections between every element of your business. It’s faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations. This is really best for those exploring their business idea for the first time, but keep in mind that it can be difficult to actually validate your idea this way as well as adapt it into a full plan.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan. This format is a simplified version of the traditional plan that focuses on the core aspects of your business. It basically serves as a beefed-up pitch document and can be finished as quickly as the business model canvas.

By starting with a one-page plan, you give yourself a minimal document to build from. You’ll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan. This plan type is useful for those exploring ideas, needing to validate their business model, or who need an internal plan to help them run and manage their business.

Now, the option that we here at LivePlan recommend is the Lean Plan . This is less of a specific document type and more of a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, test, review, refine, and take action based on performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27-minutes . However, it’s even easier to convert into a full plan thanks to how heavily it’s tied to your financials. The overall goal of Lean Planning isn’t to just produce documents that you use once and shelve. Instead, the Lean Planning process helps you build a healthier company that thrives in times of growth and stable through times of crisis.

It’s faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Try the LivePlan Method for Lean Business Planning

Now that you know the basics of business planning, it’s time to get started. Again we recommend leveraging a Lean Plan for a faster, easier, and far more useful planning process. 

To get familiar with the Lean Plan format, you can download our free Lean Plan template . However, if you want to elevate your ability to create and use your lean plan even further, you may want to explore LivePlan. 

It features step-by-step guidance that ensures you cover everything necessary while reducing the time spent on formatting and presenting. You’ll also gain access to financial forecasting tools that propel you through the process. Finally, it will transform your plan into a management tool that will help you easily compare your forecasts to your actual results. 

Check out how LivePlan streamlines Lean Planning by downloading our Kickstart Your Business ebook .

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business plan control meaning

Complete Guide To Control Mechanisms In Business

business plan control meaning

The four functions of management are planning, leading, organizing and controlling. Companies use various control mechanisms — business plan, needs assessment, budgets, audits, pricing, communications, training, performance reviews, and employee incentives — to optimize performance in each of these areas.

What are Control Mechanisms in Business?

Control can be defined by its function: it promotes business continuity. A company may continue to exist, but if the business is not profitable, it does not have a clear mission. In order to maintain a business, managers may need to alter monetary, employee, or operational aspects of it. Managers tend to use control mechanisms to monitor performance in the four areas of management to ensure that the company can perform successfully.

Types of Control Mechanisms in Business

Control mechanisms are necessarily subjective. They are the mechanisms and procedures used to provide pertinent information about each aspect of business, as well as instructions and rewards for reaching a particular standard or goal. The selection of these control mechanisms depends largely on the industry of the business and the kind of product or service it provides.

The best control mechanisms provide feedback to managers, so they can continually maximize efficiency, productivity, and profits. A control system must be based on effective measurement, which is used for decisions and judgments based on fact. This may involve the use of both formal and informal controls.

Control Mechanisms in Business

Since business is conducted by individuals and groups, managers must exercise certain kinds of control that ensure the activities and goals of the company are met.

Control Mechanisms in Business Planning

Planning is the most important control for businesses. This is subjective and depends upon the conditions of the industry, the business’s history and the amount of risk facing the company.

A business plan describes the conditions for success of a business with the help of a SWOT analysis — which stands for strengths, weaknesses, opportunities, and threats — and a financial statement. The business plan gives direction to the company by providing a road map to management and serves as a communication mechanism.

Control Mechanisms in Business Leadering

Management is also necessary for the efficient use of available resources, which is frequently determined by the roles of leadership in business.

Leadership in business is subjective and depends on the size of a business, the complexity of its operations, the infrastructure of the company, and the financial and human resources of the business.

Leading involves motivating and leading employees and the members of a business to work toward common goals.

A few good managers have the ability to inspire their employees to reach their goals and are the heart and soul of any successful company.

The most common ways of developing such leaders are by using formal training programs and setting up mentoring relationships.

Control Mechanisms in Business Control

Control mechanisms are necessary to keep employees and the members of a business on the right path.

These control mechanisms help managers correct mistakes and avoid problems before they happen.

Many aspects of a business that may need controls are not measurable and are not formalized – such as market conditions. Because they are subjective, these controls vary from business to business; however, they all work toward the improvement and success of a company.

The most frequently used control mechanisms are:

  • Organizational structure
  • Human resources
  • Economic resources
  • Operational procedures
  • Setting goals
  • Publicity and promotions
  • Monetary incentives
  • Performance appraisals

Control Mechanisms in Business Performance Reviews

The two main reasons for conducting performance reviews are to recognize productive employees and to identify performance that is not up to par with requirements. Performance appraisals may be formal or informal and may include structured interviews as well as standard operating procedures. The objective of a performance review is to develop such plans for increased productivity as are appropriate.

Performance reviews must be conducted objectively and with specific guidelines to address the needs of all employees. The responsibility for conducting such reviews should be given to employees who are experienced and objective.

Performance appraisals are subjective in nature.

Organizational efficiency depends on high performance and motivation of employees. The use of performance appraisal tools helps measure employees’ job performance and assess their future.

Performance appraisal is a process of systematically gathering information about employee performance and forecasting future behavior and can be an effective mechanism to motivate employees.

Objective measures such as production records, productivity indices, and customer surveys may be used as one source of data for performance appraisal.

These measures can provide some feedback on work performance, but they do not take into account all the factors that contribute to the quality of work.

In addition to performance appraisal review by supervisors, employees should be given an opportunity to evaluate their own performance.

Control Mechanisms in Business Setting Goals

Many managers say that the most important step in the control of a business is to set goals and to measure the achievement of these goals. Managers must also have a plan of action in view of the goals that are not met.

As long as there is a discrepancy between goals and actual performance, there is no need for concern. The real test of good management is when there is agreement that goals are being achieved and financial results are strong.

The use of goal setting promotes efficiency and productivity, which are essential for the effective operation of any organization. Goals are the cornerstone of any operation.

Goals are used as an effective control mechanism because they give direction to an organization.

Performance goals should result in specific objectives and criteria. Objectives are measurable standards that must be met to achieve good results. Criteria are used to establish how objectives will be used and whether they are being used effectively. Criteria are under-developed measures used to assess a situation.

Control Mechanisms in Business Training

A comprehensive training program for the members of an organization is essential for the growth and stability of any business.

Control mechanisms in training are used to prepare employees, develop their skills and make them aware of their job responsibilities and the benefits they can derive from their jobs.

Training programs help to create a positive work environment that boosts efficiency and productivity.

Training programs for all employees can not exceed what is required for the managers to carry out their duties.

Manager’s Training

Training is an integral part of the company’s efforts to be an acknowledged leader in its industry. This is accomplished by understanding the company’s management responsibility.

While management practices come from the top, it is up to middle managers to put these practices into action. This is achieved through quality training programs for all members of an organization.

Control Mechanisms in Business Research and Development

Research and development (R&D) is a major task for all organizations.

This strategy allows the organization to be ahead of the competition by providing adequate strategies to meet customer needs. The strategy also provides cost savings by improving production methods and cutting costs.

The control mechanism for R&D should be used to measure actual performance against the forecast. Because R&D is innovative and subject to uncertainty, the allocation of resources is not always certain. This makes it difficult to develop a control mechanism for this area.

A relaxed, not too strict, control mechanism is advantageous for R&D to circulate freely. However, in order to achieve business objectives and to measure performance there is a need for a more precise, formalized control mechanism for R&D.

Control Mechanisms in Business Administration

Systems management is a useful control mechanism for the administration of a business. Many reports and forms can be generated to monitor and measure how well a business performs in general, as well as in specific areas of operation.

Control mechanisms in administration are also necessary to control the various types of transactions of a business, such as the preparation of budgets, audits, payroll, billing, receivables, etc.

The use of a control mechanism in administration allows a business to act and react to its environment in an orderly, predictable manner.

Control Mechanisms in Business Accounting

The use of a control mechanism in accounting allows an organization to determine the financial status of the business. Through careful and systematic monitoring, an organization can gain better control over its finances for proper budgeting, projections, and forecasts.

Control mechanisms in accounting help in the implementation of accounting policies and practices as well as financial transactions, ensuring that all accounting records are accurate and current. Accurate records also allow the business to make informed decisions about the future of the organization.

Control mechanisms in accounting help to assess the credibility of the company. These mechanisms also ensure that the internal and external levels of the company are in agreement with each other.

Control Mechanisms in Business External and Internal Controls

Control mechanisms in business serve to mitigate the risks and uncertainties that result from operating in a complex and dynamic environment.

External controls are used to mitigate undesirable and uncontrolled activity at the external boundary of a system, which may provide threat to a system.

or products are infected with defects.

Internal controls are used to mitigate undesirable and uncontrolled activity at the internal boundary of a system, which may reduce the efficiency and effectiveness of a system.

External and internal controls are complementary, each serving a distinctly different role.

External controls serve to protect an organization from harm. Internal controls serve to protect and manage an organization’s resources.

Control mechanisms in business can be classified into three basic categories:

  • Regulation and control
  • Accounting and control;
  • Operational control.

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  • 11.4 The Business Plan
  • Introduction
  • 1.1 Entrepreneurship Today
  • 1.2 Entrepreneurial Vision and Goals
  • 1.3 The Entrepreneurial Mindset
  • Review Questions
  • Discussion Questions
  • Case Questions
  • Suggested Resources
  • 2.1 Overview of the Entrepreneurial Journey
  • 2.2 The Process of Becoming an Entrepreneur
  • 2.3 Entrepreneurial Pathways
  • 2.4 Frameworks to Inform Your Entrepreneurial Path
  • 3.1 Ethical and Legal Issues in Entrepreneurship
  • 3.2 Corporate Social Responsibility and Social Entrepreneurship
  • 3.3 Developing a Workplace Culture of Ethical Excellence and Accountability
  • 4.1 Tools for Creativity and Innovation
  • 4.2 Creativity, Innovation, and Invention: How They Differ
  • 4.3 Developing Ideas, Innovations, and Inventions
  • 5.1 Entrepreneurial Opportunity
  • 5.2 Researching Potential Business Opportunities
  • 5.3 Competitive Analysis
  • 6.1 Problem Solving to Find Entrepreneurial Solutions
  • 6.2 Creative Problem-Solving Process
  • 6.3 Design Thinking
  • 6.4 Lean Processes
  • 7.1 Clarifying Your Vision, Mission, and Goals
  • 7.2 Sharing Your Entrepreneurial Story
  • 7.3 Developing Pitches for Various Audiences and Goals
  • 7.4 Protecting Your Idea and Polishing the Pitch through Feedback
  • 7.5 Reality Check: Contests and Competitions
  • 8.1 Entrepreneurial Marketing and the Marketing Mix
  • 8.2 Market Research, Market Opportunity Recognition, and Target Market
  • 8.3 Marketing Techniques and Tools for Entrepreneurs
  • 8.4 Entrepreneurial Branding
  • 8.5 Marketing Strategy and the Marketing Plan
  • 8.6 Sales and Customer Service
  • 9.1 Overview of Entrepreneurial Finance and Accounting Strategies
  • 9.2 Special Funding Strategies
  • 9.3 Accounting Basics for Entrepreneurs
  • 9.4 Developing Startup Financial Statements and Projections
  • 10.1 Launching the Imperfect Business: Lean Startup
  • 10.2 Why Early Failure Can Lead to Success Later
  • 10.3 The Challenging Truth about Business Ownership
  • 10.4 Managing, Following, and Adjusting the Initial Plan
  • 10.5 Growth: Signs, Pains, and Cautions
  • 11.1 Avoiding the “Field of Dreams” Approach
  • 11.2 Designing the Business Model
  • 11.3 Conducting a Feasibility Analysis
  • 12.1 Building and Connecting to Networks
  • 12.2 Building the Entrepreneurial Dream Team
  • 12.3 Designing a Startup Operational Plan
  • 13.1 Business Structures: Overview of Legal and Tax Considerations
  • 13.2 Corporations
  • 13.3 Partnerships and Joint Ventures
  • 13.4 Limited Liability Companies
  • 13.5 Sole Proprietorships
  • 13.6 Additional Considerations: Capital Acquisition, Business Domicile, and Technology
  • 13.7 Mitigating and Managing Risks
  • 14.1 Types of Resources
  • 14.2 Using the PEST Framework to Assess Resource Needs
  • 14.3 Managing Resources over the Venture Life Cycle
  • 15.1 Launching Your Venture
  • 15.2 Making Difficult Business Decisions in Response to Challenges
  • 15.3 Seeking Help or Support
  • 15.4 Now What? Serving as a Mentor, Consultant, or Champion
  • 15.5 Reflections: Documenting the Journey
  • A | Suggested Resources

Learning Objectives

By the end of this section, you will be able to:

  • Describe the different purposes of a business plan
  • Describe and develop the components of a brief business plan
  • Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

  • These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
  • Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

  • You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
  • Would you have started the Laughing Man Foundation?
  • What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

  • What steps should the new restaurant take to create a new business plan?
  • Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

  • 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
  • 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
  • 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
  • 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
  • 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
  • 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
  • 54 Foodstart. http://foodstart.com
  • 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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15.10: What Does Control Mean in the Business Setting?

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  • Lumen Learning

Learning Outcomes

  • Explain what control means in a business setting.
  • Describe the benefits and costs of organizational control.

Figures of businesspeople in front of gears with the words time, place, objects, quantity, costs, quality, and customers in different areas of the gears

Control in general is a device or mechanism used to regulate or guide the operation of a machine, apparatus, or system. Control in a business setting, or organizational control , involves the processes and procedures that regulate, guide, and protect an organization. It is one of the four primary managerial functions, along with planning, organizing, and leading.

One common type of control companies use is a set of financial policies. These policies may not be communicated to all employees, but they exist for all but the smallest firms. Controls start with managing cash. For example, controls limit check-writing authority and the use of company credit cards. For example, a firm may require two signatures on checks more than $10,000 or have one person to log journal entries and another person to review the entries. These policies help prevent fraud and errors as well as monitor whether company goals are being met. In larger companies, each department manager submits an annual budget and profit-and-loss statements.

The most common style, or approach, of organizational control is top-down control. With top-down control, decisions are made by high-level executives, and information flows down to the lower-level employees of the organization.

The three types of organizational control include the familiar feedback, proactive, and concurrent controls. We’ll talk about these more later, but first, let’s explore some of the benefits and disadvantages of organizational control.

Practice Question

https://assessments.lumenlearning.co...essments/12317

Implementing Organizational Control

Organizational control involves developing rules, procedures, or other protocols for directing the work of employees and processes as well as monitoring the work. Organizational control is an important function because it helps identify errors and deviation from standards so that corrective actions can be taken to achieve goals. The purpose of organizational control is to ensure that a specific function is performed according to established standards.

Organizational control has many varied benefits, including improved communication, financial stability, increased productivity and efficiency, help in meeting annual goals, improved morale, legal compliance, improved quality control, and fraud and error prevention.

Controls help to better define an organization’s objectives so that employees and resources are focused on them. They safeguard against misuse of resources and facilitate corrective measures. Having good records means management will better understand what happened in the past and where change can be effective.

All businesses need controls. Even sole proprietor businesses must keep records for tax reporting. Public companies are legally required to have extensive controls to protect stockholders, and good controls help a company to raise funds through stock and debt issuance.

Employee morale may be higher when workers see that management is paying attention and knows what it is doing. As an earlier module discussed, better morale means better productivity. Better controls can mean more freedom and responsibility for employees. Management is able to step back a little, knowing that the controls will flag any exceptions.

Toyota has made control a competitive advantage. As an article in the Harvard Business Review says, “Toyota’s way is to measure everything—even the noise that car doors make when they open and close as workers perform their final inspections on newly manufactured automobiles.” [1] After bad publicity over unusual brake issues, Toyota was again at the top of Consumer Reports’ 2016 reliability report. [2]

Disadvantages

Even the simplest control is an added expense. Some systems can be very expensive, so management must weigh the cost versus the benefit for each control. Banks spend billions on controls, but it is worthwhile for the large banks, because they handle trillions and their profits are still in the billions.

A control mentality can lead to overstaffing and unsustainable costs for some businesses. Community banks, for example, feel the burden of new regulations on the banking industry more heavily than the largest nationwide banks. Research from the Federal Reserve Bank of Minneapolis, Minnesota, and quoted in the New York Times “suggests that adding just two members to the compliance department would make a third of the smallest banks unprofitable.” [3]

A less obvious expense is maintaining the controls. Systems need continuous updating as the organization changes. If they are not maintained, the controls may become ineffective.

Controls can become a blind spot for management. Overreliance on controls may lead to relaxation in supervision and allow manipulation of accounts and assets. Employees tend to follow the letter of rules, not the intent, so management needs to check in regularly on how controls are actually operating.

A rigid implementation may lead to a slowdown in the operation of the business. At Freddie Mac, a financial services company, the new product approval process required 25 signatures and took more than a year. The new opportunities in the market disappeared before products could be approved.

The wrong controls may expose the firm to more errors and fraud. And employees will be frustrated if the controls are cumbersome.

https://assessments.lumenlearning.co...essments/12318

  • Thomas A. Stewart and Anand P. Raman, “Lessons from Toyota's Long Drive,” Harvard Business Review, July–August 2007, https://hbr.org/2007/07/lessons-from-toyotas-long-drive . ↵
  • Michelle Naranjo, “CR's Car Reliability Survey Reveals Shuffles in Brand and Model Rankings,” Consumer Reports, October 24, 2016, https://www.consumerreports.org/car-reliability/car-reliability-survey-2016/ . ↵
  • Marshall Lux and Robert Greene, “Dodd-Frank Is Hurting Community Banks,” New York Times, last updated April 14, 2016, https://www.nytimes.com/roomfordebate/2016/04/14/has-dodd-frank-eliminated-the-dangers-in-the-banking-system/dodd-frank-is-hurting-community-banks . ↵

Contributors and Attributions

  • What Does Control Mean in the Business Setting?. Authored by : Talia Lambarki and Lumen Learning. License : CC BY: Attribution
  • Image: Logistics. Authored by : geralt. Located at : https://pixabay.com/en/logistics-personal-group-gears-877568/ . License : CC0: No Rights Reserved

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business plan control meaning

Business Process Control Goals and Control Plans

business plan control meaning

Our working definition of internal control describes it in the broad sense of both selecting the ends to be attained ( control goals ) and specifying the means to ensure that the goals are attained ( control plans ). Control also extends to the processes of reviewing a system periodically to ensure that the goals of the system are being achieved, and to taking remedial action (if necessary) to correct any deficiencies in the system (i.e., monitoring). Control is concerned with discovering courses of action that contribute to the general welfare of the business organization and with ensuring that the implementation of these actions produces the desired effects.

Control goals are business process objectives that an internal control system is designed to achieve. Table 8.1 provides an overview of the generic control goals of the operations process and of the information process. To illustrate our discussion we use a cash receipts process, similar to the Causeway system depicted in Figure 2.14 .

  • Control Goals of the Operations Process
  • Control Goals of the Information Process
  • Control Plans
  • 10052 reads
  • Unique Features of the Book
  • How This Textbook Presents Information Systems
  • To The Student
  • Instructional Supplements
  • Acknowledgments
  • Synopsis Learning Objectives
  • Introduction
  • Challenges and Opportunities for the Business Professional
  • Components of the Study of Information Systems Technology Insight 1.1
  • Systems and Subsystems
  • The Information System
  • Logical Components of a Business Process
  • Data versus Information
  • Qualities of Information
  • The Role of the Business Professional
  • Review Questions
  • Discussion Questions
  • Reading Data Flow Diagrams
  • Reading Systems Flowcharts
  • Reading Entity-Relationship Diagrams
  • Preparing Data Flow Diagrams
  • The Narrative
  • Table of Entities and Activities
  • Summary of Drawing DFD Diagrams
  • Preparing Systems Flowcharts
  • Summary of Systems Flowcharting
  • Transaction Processing Approach
  • Event-Driven Approach
  • Managing Data Files
  • Limitations of File Processing
  • Logical vs. Physical Database Models Technology Insight 3.1
  • Overcoming the Limitations of File Processing
  • Enabling Event-Driven Systems
  • Entities and Attributes
  • Relationships Technology Insight 3.2
  • Basic Relational Concepts
  • E-R Model Development
  • Model Constraints
  • Entity Relationship (E-R) Diagrams
  • Mapping an E-R Diagram to a Relational DBMS
  • Automating Manual Systems
  • Online Transaction Entry (OLTE)
  • Online Real-Time (OLRT) Processing
  • Online Transaction Processing (OLTP)
  • Automated Data Entry
  • Digital Image Processing
  • Communication Networks
  • Electronic Document Management Technology Application 4.1
  • Electronic Data Interchange Technology Application 4.2
  • Internet Commerce Technology Insight 4.1 Technology Insight 4.2 Technology Insight 4.3 Technology Application 4.3 Technology Application 4.4 Technology Insight 4.4 Technology Insight 4.5
  • Conclusions
  • EDI Standards
  • Management Decision Making Technology Insight 5.1 Technology Application 5.1
  • Systems for Aiding Decision Makers Technology Insight 5.2 Technology Application 5.2 Technology Insight 5.3 Technology Application 5.3 Technology Insight 5.4 Technology Application 5.4 Technology Application 5.5
  • Gathering Knowledge with Groupware
  • Storing Knowledge in Data Warehouses Technology Insight 5.5
  • Intelligent Agents for Knowledge Retrieval
  • Creating a Knowledge Culture Technology Application 5.6
  • Reviews Questions
  • Definition and Objectives of Systems Development Technology Insight 6.1
  • Project Management
  • Quality Assurance
  • Involvement in Systems Development
  • Business Process Reengineering
  • Change Management
  • Triggering Systems Development
  • Definition and Goals
  • Gather Facts
  • Perform Preliminary Feasibility Study
  • Devise the Project Plan
  • Obtain Approvals
  • Define Logical Specifications
  • Design Alternative Physical Systems
  • Select the Best Alternative Physical System
  • Complete and Package the Systems Analysis Documentation
  • Tools for Gathering and Analyzing Facts
  • Literature Review
  • Internal Presentation
  • Observations
  • Database and Files Review
  • Questionnaires
  • Systems Selection
  • Software Acquisition Alternatives Technology Excerpt 7.1 Technology Insight 7.1
  • Hardware Acquisition Alternatives
  • Prepare Requests for Proposal Technology Insight 7.2
  • Evaluate Vendor Proposals Technology Excerpt 7.2
  • Complete Configuration Plan
  • Introduction to Structured Systems Design
  • Specify Modules
  • Develop Implementation Plan and Budget
  • Develop Implementation Test Plan
  • Develop User Manual
  • Develop Training Program Technology Application 7.1
  • Complete Systems Design Document
  • Introduction to Systems Implementation
  • Complete the Design
  • Acquire Hardware and Software Technology Excerpt 7.3
  • Write, Configure, Test, Debug, and Document Computer Software
  • Select, Train, and Educate Personnel
  • Complete User Manual
  • Test System
  • Conduct Conversion
  • The Post-Implementation Review
  • Systems Maintenance
  • Corporate Governance Technology Excerpt 8.1
  • Fraud and Its Relationship to Control Technology Insight 8.1 Technology Insight 8.2
  • A Working Definition of Internal Control
  • Ethical Considerations and the Control Environment
  • Four Broad IT Control Process Domains
  • IT Process 1: Establish Strategic Vision for Information Technology
  • IT Process 2: Develop Tactics to Plan, Communicate, and Manage Realization of the Strategic Mission Technology Excerpt 8.2
  • IT Process 3: Identify Automated Solutions
  • IT Process 4: Develop and Acquire IT Solutions
  • IT Process 5: Integrate IT Solutions into Operational Processes
  • IT Process 6: Manage Changes to Existing IT Systems
  • IT Process 7: Deliver Required IT Services
  • IT Process 8: Ensure Security and Continuous Service Technology Insight 8.3 Technology Insight 8.4
  • IT Process 9: Provide Support Services
  • IT Process 10: Monitor Operations
  • Review Qestions
  • Synopsis LEARNING OBJECTIVES
  • The Control Matrix
  • Steps in Preparing the Control Matrix
  • System Description and Flowchart
  • Applying the Control Framework
  • Data Encryption and Public-Key Cryptography TECHNOLOGY APPLICATION 9.1
  • REVIEW QUESTIONS
  • DISCUSSION QUESTIONS
  • Part V CORE BUSINESS PROCESSES
  • Process Definition and Functions
  • A Horizontal Perspective
  • A Vertical Perspective TECHNOLOGY INSIGHT 10.1
  • Decision Making and Kinds of Decisions
  • Using Data Mining to Support Marketing TECHNOLOGY APPLICATION 10.1 Technology Excerpt 10.2
  • Mastering Global Markets with E-Business TECHNOLOGY APPLICATION 10.2
  • Customer Relationship Management (CRM) Systems
  • Logical Data Flow Diagrams
  • Logical Data Descriptions
  • The M/S Process
  • Management Reporting
  • Control Goals TECHNOLOGY INSIGHT 10.3
  • Recommended Control Plans
  • Lower Level DFDs
  • Logical Database Design
  • CASE STUDIES
  • Organizational Setting TECHNOLOGY INSIGHT 11.1
  • CRM: Customer Self-Service Systems
  • Digital Image Processing Systems
  • Managing Cash Receipts TECHNOLOGY APPLICATION 11.1 TECHNOLOGY INSIGHT 11.2
  • Types of Billing Systems
  • The Billing Process TECHNOLOGY INSIGHT 11.3
  • Selected Process Outputs
  • Control Goals
  • Physical Process Description of the Cash Receipts Function TECHNOLOGY INSIGHT 11.4
  • Lower-Level DFDs
  • A Vertical Perspective
  • Goal Conflicts and Ambiguities in the Organization TECHNOLOGY INSIGHT 12.1
  • Discussion and Illustration TECHNOLOGY INSIGHT 12.2
  • Technology Trends and Developments TECHNOLOGY APPLICATION 12.1 TECHNOLOGY APPLICATION 12.2
  • Discussion and Illustration Technology Excerpt 12.1
  • Exception Routines
  • Competing in a Global Manufacturing Environment
  • Enterprise Systems Solutions
  • Managing Throughput Time in Production Processes
  • Managing Production Processes with ERP
  • Engineering System Components
  • Production Planning and Control Process Components
  • Flexible Manufacturing System Components
  • Basic Definitions
  • Process Components
  • Inventory Management TECHNOLOGY APPLICATION 13.1
  • Integrating the Processes: Supply Chain Management
  • Supporting Complex Processes with Complex Systems: ERP as a Solution TECHNOLOGY APPLICATION 13.2
  • Conclusions TECHNOLOGY APPLICATION 13.3
  • Budgets and Financial Reporting
  • Horizontal and Vertical Information Flows TECHNOLOGY APPLICATION 14.1
  • Discussion and Illustration
  • The General Ledger Master Data
  • Limitations of the General Ledger Approach
  • Enterprise System Financial Module Capability
  • Balanced Scorecard
  • Business Intelligence TECHNOLOGY APPLICATION 14.2
  • Business Intelligence Systems for Aiding the Strategic Planner
  • eXtensible Business Reporting Language (XBRL) Technology Excerpt 14.1
  •  Back Matter

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HKMU

Quality-One

Control Plan Development

Control plans.

– Control Plan Development –

⇓   Introduction to Control Plans

⇓   What is a Control Plan

⇓   Why Develop a Control Plan

⇓   How to Develop a Control Plan

⇓   Learn More About Control Plans

Quality and Reliability Support | Quality-One

Introduction to Control Plans

Most companies are looking for methods to reduce cost and eliminate waste in their processes. In the business world today controlling waste and maintaining a high level of quality is imperative for a company to succeed. The cost of doing business is ever increasing. Rising costs of raw materials combined with labor and equipment costs have brought scrap reduction into the critical to business category. The cost of steel alone has more than doubled in the last two years. Therefore, it has become increasingly important to assure that parts are being produced that conform to customer requirements every time. In addition, we must have the ability to detect a non-conforming part or assembly as well as a plan for responding to changing process conditions.  The majority of manufacturing companies are experienced at detecting initial problems and developing corrective actions to correct the problem. But many fall short when it comes to sustaining those corrective actions or process improvements over a long period of time. In many cases the process gradually returns to its previous state and the problems eventually resurface. The purpose of a Control Plan is to monitor processes and assure that any improvements are maintained over the life cycle of the part or product. Control Plans are currently being utilized to ensure product quality in the Automotive, Aerospace, Agricultural Equipment, Heavy Equipment and many other industries throughout the world.  A Control Plan is often a Production Part Approval Process (PPAP) requirement for suppliers of parts to companies in these industries. The primary resource for information regarding Control Plan Methodology in the automotive industry is the Advanced Product Quality Planning and Control Plan manual published by the Automotive Industry Action Group (AIAG).

What is a Control Plan

The Control Plan is a document that describes the actions (measurements, inspections, quality checks or monitoring of process parameters) required at each phase of a process to assure the process outputs will conform to pre-determined requirements. In simpler terms, the Control Plan provides the operator or inspector with the information required to properly control the process and produce quality parts or assemblies. It should also include instructions regarding actions taken if a non-conformance is detected. The Control Plan does not replace detailed operator instructions. In some cases the Control Plan is used in conjunction with an inspection sheet or checklist. The Control Plan helps assure quality is maintained in a process in the event of employee turnover by establishing a standard for quality inspection and process monitoring.  Control Plans are living documents that should be periodically updated as the measurement methods and controls are improved throughout the life cycle of the product.

Control Plan Template

Why Develop a Control Plan

Developing and implementing Control Plan Methodology has several benefits. The use of Control Plans helps reduce or eliminate waste in a process. Businesses today must reduce waste everywhere possible. The Control Plan improves product quality by identifying the sources of variation in a process and establishing controls to monitor them. Control Plans focus on the product characteristics most important to the customer and the business. By focusing on what is critical to quality during the process, you can reduce scrap, eliminate costly reworks and prevent defective product from reaching the customer. When scrap and reworks are reduced, throughput of the process is inherently improved. Manufacturing efficiency is improved and your company’s bottom line is impacted in a positive manner.

How to Develop a Control Plan

The Control Plan should be developed by a Cross Functional Team (CFT) that has an understanding of the process being controlled or improved. By utilizing a CFT, you are likely to identify more opportunities for improvement of the process. The Control Plan is more than just a form to fill out.  It is a plan developed by the team to control the process and ensure the process produces quality parts that meet the customer requirements. The information contained in the control plan can originate from several sources, including but not limited to the following:

  • Process Flow Diagram
  • Design Failure Mode and Effects Analysis (DFMEA)
  • Process Failure Mode and Effects Analysis (PFMEA)
  • Special Characteristics Matrix
  • Lessons Learned from similar parts
  • Design Reviews
  • Team knowledge about the process
  • Field or warranty issues

Throughout the life cycle of a product, the information contained in the list above frequently changes or the content grows. Therefore the Control Plan must be a living document, continuously updated as new information is added. The Control Plan therefore is an integral part of an effective product quality system.

The Three Levels of Control Plans

Prior to completing the Control Plan development, the team must determine the proper level appropriate for the process being controlled. There are three designations for a Control Plan level based upon what point the product is at in the New Product Introduction (NPI) process. They are as follows:

  • Prototype – This level Control Plan should include descriptions of the dimensions to be measured and the material and performance tests to be completed during the prototype build
  • Pre-Launch – This level of Control Plan should contain descriptions of the dimensions to be measured and the material and performance tests to be completed after prototype but prior to product launch and regular production
  • Production – This level of Control Plan should contain a comprehensive listing of the product and process special characteristics, the process controls, measurement methods and tests that will be performed during regular production

The Control Plan Format

There are many variations of the form used to document the Control Plan.  Most of the forms used are in the Excel format although there are custom software packages available for many quality tools, including Control Plans. The following section will provide descriptions of what general information should be populated in each of the blocks. The types of control plans vary depending upon the process being controlled.

  • Control Plan Level – The appropriate box should be checked to indicate the level or type of Control Plan that is being developed
  • Control Plan Number – Enter the appropriate number that the Control Plan will be listed as in your document control system
  • In addition the appropriate change or revision level should be indicated. The control plan should be reviewed and updated with each level change or revision of the part or assembly. The control plan should be a living document.
  • The process name is preferred if the Control Plan is covering a family of parts produced on the same process
  • Supplier/Plant – Enter name of the company and plant/division developing the Control Plan
  • Supplier Code – Your designated supplier code should be entered if the part is being produced for an external customer
  • Key Contact/Phone – The Name and contact information (phone number, email) of the primary contact responsible for the Control Plan
  • Core Team – Enter the names of the CFT that prepared the Control Plan
  • Supplier/Plant Approval Date – Once the approval is received from the customer, enter the date approval was received
  • Other Approval/Date – Enter any additional approval information and date if required
  • Date Original – The date the Control Plan was initially completed should be entered here
  • Date/Rev – Insert the latest revision date of the Control Plan released in this box
  • Customer Engineering Approval/Date – If required, obtain the customer engineering approval information and enter in this location
  • Customer Quality Approval/Date – If required, obtain the customer quality representative approval information and enter in this location
  • Part numbers may be entered for an assembly and in some applications the process step number from the Process flow is entered
  • Process Name/Operation Description – Enter information from the process flow diagram that describes the operation being performed in this column
  • Machine/Device/Jigs/Tool for Manufacturing – In this column, identify the equipment, machines, fixtures, jigs and other tools required to accomplish the particular process operation listed in the corresponding row

Characteristics Section

This section of the Control Plan describes the particular characteristics of the product or process that may need to be controlled and documented. The characteristic could be product or process related and the data could be variable or attribute data. The difference between product and process characteristics is often confused when completing a Control Plan.

  • Number – This column is used for assigning a number corresponding to information in the process flow, work instructions or a numbered print
  • Product – Product characteristics are physical features or properties of an assembly or component part usually described on the drawing that can be measured when the process is completed. Not all the dimensions or features on the print should be listed on the Control Plan. The team should determine the key or critical characteristics and compile them from their various sources. Special, Key or Critical characteristics come from the DFMEA exercise, print reviews, product or process historical information and customer feedback. If there are no key product characteristics for the particular operation, leave this space blank.
  • Process – In this column, the team should identify the Key characteristics relating to the process. Examples would be the setting on a torque tool or the orientation of parts in a fixture. If there are no key process characteristics for the particular operation, leave this space blank. There could be multiple process characteristics listed for a single product characteristic. Key process characteristics can originate from the PFMEA or team knowledge of the process performance.
  • P – Process
  • R – Regulatory
  • OS – Operator Safety

Methods Section

The information contained in the methods section includes the specification to be measured and a plan for collecting the data and controlling the process. The data could be variable or attribute data.

  • Product/Process Specification / Tolerance – List the specification and tolerance as defined on the drawing, material specification, 3D model or in the manufacturing or assembly documentation
  • Evaluation/Measurement Technique – Identify the measurement tools, gages, fixtures and / or test equipment used to evaluate the part or process specification listed in the previous column. A Measurement Systems Analysis (MSA) is recommended to assure that correct, consistent usable data is being collected.
  • Sample Size – If sampling is required, list the corresponding sample size or number of parts or assemblies that should be measured /evaluated during the process
  • Sample Frequency – If sampling is required, list the frequency at which the samples will be taken during the process. As an example, the frequency could be 1st, 25th and final, or it could be continuous.
  • Control Method / Prevention – This column should list the prevention controls and / or documents the operator will need to complete the process step. This should include work instructions, drawings, visual aids, etc.
  • Control Method / Detection – The information in this column is critical for the effectiveness of the Control Plan. This column should list any detection controls determined by the team during the previous quality plan activities, including the DFMEA and PFMEA. The methods could include but are not limited to Statistical Process Control (SPC) , visual inspection, attribute data collection, error proofing, etc. A document or procedure number may also be populated in this space. The effectiveness of the control selected should be evaluated on a regular basis.
  • Reaction Plan – This column should specify the actions required to prevent production of non-conforming products. The actions should be the responsibility of the operator and / or their immediate supervisor. They should include at the very least how to label, identify and quarantine the non-conforming material and the proper disposition of the suspect material, parts or assemblies. In addition, the reaction plan should include directions for properly documenting the incident and who should be notified of the non-conformance.

Control Plans can vary depending upon what type of process is being controlled. There are many different applications where the Control Plan can add value to the process. Below are a few examples of the different applications:

  • Equipment set-up process where the major contributor to process variation is proper set-up of the equipment prior to the production run
  • Equipment tooling dominant process where the major influence on variation is the impact of tool life on the part or product design characteristics
  • Operator dominant process where the variation in the process is a result of the knowledge or training of the operator and the proper controls

The Control Plan can be a very effective tool for reducing the amount of scrap generated by a process. It can be very useful at improving quality and helping contain any non-conforming product prior to it leaving the work cell. It is most effective when incorporated into a larger quality plan. The Control Plan is the same as any other tool, in that to get the most value you must know how to use it properly. Your teams will require training and coaching in order to implement an effective Control Plan system. If you are interested in learning more about Control Plan Methodology, please contact one of our experienced professionals at Quality-One.

Learn More About Control Plan Development

Quality-One offers Quality and Reliability Support for Product and Process Development through Consulting, Training and Project Support. Quality-One provides Knowledge, Guidance and Direction in Quality and Reliability activities, tailored to your unique wants, needs and desires. Let us help you Discover the Value of Control Plan Consulting , Control Plan Training or Control Plan Project Support .

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What Are the Control Systems of a Business?

by John Landers

Published on 26 Sep 2017

Business control systems consist of procedures and processes, which help an organization achieve its mission and objectives. Controls define how employees should conduct themselves and perform job duties. After business owners and managers implement standards, they must track and monitor performance. Systems require ongoing modifications and adjustments to help reach targets.

Document Control

Most businesses have controls that assure standardized documents, such as guides, specifications, work instructions or policies and procedures. Document control procedures usually include a master list of documents. All documents must receive approval before use. The approval process may include naming the document, assigning a control number and a date. Typically, documents must undergo approval before use, identified with dates and given control and revision numbers. Revisions must also receive authorization. Some control procedures may also include a method of distribution and assign responsibilities for updating documents.

The marketing function develops a plan and establishes marketing objectives. Typically, the schemes include controls to measure, monitor and regulate marketing campaigns and related activities. Targets or performance objectives cover a wide variety of standards, such as sales volume, market share and profits. Management employs a range of reports to track progress and make comparisons, including variance analysis or expenses-to-sales analysis. Sale control mechanisms include budgets, sale quotas, credit criteria and sales force automation.

Financial Controls

Companies use financial reports, such as income statements, balance sheets and cash flow statements, to form the core of financial control systems. Balance sheets help business owners and managers determine the financial strength -- business liabilities and assets -- at a specific point. This report can help owners determine if a firm has the resources to grow or survive during economic downturns. Income statements, or profit and loss statements, track revenues and costs over a particular duration. Managers can review itemized expenses to identify items out of line with the budget, or increase the budget as warranted. Cash flow statements provide a business with projections of revenue and costs for each month over, at minimum, a 12-month period. This statement helps keep a business on track to meet it income targets

Human Resources

The human resource aspect of businesses must focus on systems for hiring, training and recruiting staff. Controls also extend to the development and management of existing employees. Businesses require techniques for assessing employees' skills, and assuring the business has staff with the necessary skills and abilities to move the organization toward its objectives. HR must also put in place workplace rules and policies that keep the business in compliance with union contracts, safety regulations and labor laws.

Quality Control

Business must have quality control, or QC, procedures in place to review and check the quality of materials, products or service. The QC procedures depend on the function. For example, the manufacturing process may require controls at specific phases, such as pre-production, during production and the finished product. The manager will need to determine what quality assurance methods to use. Business owners may use statistical techniques to ascertain the quality of raw material on arrival to the plant, or may perform visual inspections of finished products.

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  • Business Continuity Plan Basics
  • Understanding BCPs
  • Benefits of BCPs
  • How to Create a BCP
  • BCP & Impact Analysis
  • BCP vs. Disaster Recovery Plan

Frequently Asked Questions

  • Business Continuity Plan FAQs

The Bottom Line

What is a business continuity plan (bcp), and how does it work.

business plan control meaning

Investopedia / Ryan Oakley

What Is a Business Continuity Plan (BCP)? 

A business continuity plan (BCP) is a system of prevention and recovery from potential threats to a company. The plan ensures that personnel and assets are protected and are able to function quickly in the event of a disaster.

Key Takeaways

  • Business continuity plans (BCPs) are prevention and recovery systems for potential threats, such as natural disasters or cyber-attacks.
  • BCP is designed to protect personnel and assets and make sure they can function quickly when disaster strikes.
  • BCPs should be tested to ensure there are no weaknesses, which can be identified and corrected.

Understanding Business Continuity Plans (BCPs)

BCP involves defining any and all risks that can affect the company's operations, making it an important part of the organization's risk management strategy. Risks may include natural disasters—fire, flood, or weather-related events—and cyber-attacks . Once the risks are identified, the plan should also include:

  • Determining how those risks will affect operations
  • Implementing safeguards and procedures to mitigate the risks
  • Testing procedures to ensure they work
  • Reviewing the process to make sure that it is up to date

BCPs are an important part of any business. Threats and disruptions mean a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition. It is generally conceived in advance and involves input from key stakeholders and personnel.

Business impact analysis, recovery, organization, and training are all steps corporations need to follow when creating a Business Continuity Plan.

Benefits of a Business Continuity Plan

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic. Business continuity planning is typically meant to help a company continue operating in the event of major disasters such as fires. BCPs are different from a disaster recovery plan, which focuses on the recovery of a company's information technology system after a crisis.

Consider a finance company based in a major city. It may put a BCP in place by taking steps including backing up its computer and client files offsite. If something were to happen to the company's corporate office, its satellite offices would still have access to important information.

An important point to note is that BCP may not be as effective if a large portion of the population is affected, as in the case of a disease outbreak. Nonetheless, BCPs can improve risk management—preventing disruptions from spreading. They can also help mitigate downtime of networks or technology, saving the company money.

How To Create a Business Continuity Plan

There are several steps many companies must follow to develop a solid BCP. They include:

  • Business Impact Analysis : Here, the business will identify functions and related resources that are time-sensitive. (More on this below.)
  • Recovery : In this portion, the business must identify and implement steps to recover critical business functions.
  • Organization : A continuity team must be created. This team will devise a plan to manage the disruption.
  • Training : The continuity team must be trained and tested. Members of the team should also complete exercises that go over the plan and strategies.

Companies may also find it useful to come up with a checklist that includes key details such as emergency contact information, a list of resources the continuity team may need, where backup data and other required information are housed or stored, and other important personnel.

Along with testing the continuity team, the company should also test the BCP itself. It should be tested several times to ensure it can be applied to many different risk scenarios . This will help identify any weaknesses in the plan which can then be corrected.

In order for a business continuity plan to be successful, all employees—even those who aren't on the continuity team—must be aware of the plan.

Business Continuity Impact Analysis

An important part of developing a BCP is a business continuity impact analysis. It identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis. The worksheet should be completed by business function and process managers who are well acquainted with the business. These worksheets will summarize the following:

  • The impacts—both financial and operational—that stem from the loss of individual business functions and process
  • Identifying when the loss of a function or process would result in the identified business impacts

Completing the analysis can help companies identify and prioritize the processes that have the most impact on the business's financial and operational functions. The point at which they must be recovered is generally known as the “recovery time objective.”

Business Continuity Plan vs. Disaster Recovery Plan

BCPs and disaster recovery plans are similar in nature, the latter focuses on technology and information technology (IT) infrastructure. BCPs are more encompassing—focusing on the entire organization, such as customer service and supply chain. 

BCPs focus on reducing overall costs or losses, while disaster recovery plans look only at technology downtimes and related costs. Disaster recovery plans tend to involve only IT personnel—which create and manage the policy. However, BCPs tend to have more personnel trained on the potential processes. 

Why Is Business Continuity Plan (BCP) Important?

Businesses are prone to a host of disasters that vary in degree from minor to catastrophic and business continuity plans (BCPs) are an important part of any business. BCP is typically meant to help a company continue operating in the event of threats and disruptions. This could result in a loss of revenue and higher costs, which leads to a drop in profitability. And businesses can't rely on insurance alone because it doesn't cover all the costs and the customers who move to the competition.

What Should a Business Continuity Plan (BCP) Include?

Business continuity plans involve identifying any and all risks that can affect the company's operations. The plan should also determine how those risks will affect operations and implement safeguards and procedures to mitigate the risks. There should also be testing procedures to ensure these safeguards and procedures work. Finally, there should be a review process to make sure that the plan is up to date.

What Is Business Continuity Impact Analysis?

An important part of developing a BCP is a business continuity impact analysis which identifies the effects of disruption of business functions and processes. It also uses the information to make decisions about recovery priorities and strategies.

FEMA provides an operational and financial impact worksheet to help run a business continuity analysis.

These worksheets summarize the impacts—both financial and operational—that stem from the loss of individual business functions and processes. They also identify when the loss of a function or process would result in the identified business impacts.

Business continuity plans (BCPs) are created to help speed up the recovery of an organization filling a threat or disaster. The plan puts in place mechanisms and functions to allow personnel and assets to minimize company downtime. BCPs cover all organizational risks should a disaster happen, such as flood or fire.  

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15 - 17.

Ready. “ IT Disaster Recovery Plan .”

Federal Emergency Management Agency. " Business Process Analysis and Business Impact Analysis User Guide ." Pages 15-17.

business plan control meaning

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What does the Capital One-Discover deal mean for you?

A Discover card is used to pay for gasoline

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Capital One Financial Corp. announced Monday that it had reached an agreement to acquire Discover Financial Services for $35.3 billion, instantly creating a financial behemoth should the deal be approved by regulators.

The merger would combine one of the largest issuers of Mastercard and Visa cards with Discover’s network of cardholders. However, such a mega-merger immediately raised antitrust concerns, as well as questions over how it might affect customers.

Here are some early answers to key questions.

Will I still be able to use my Discover card?

The proposed merger could take a year or more to gain regulatory approval, so in the immediate term don’t expect any changes as it’s reviewed. The companies have not yet disclosed how they might change their product mix. It’s possible Capital One might issue new Discover cards highlighting its name instead of Discover’s bright orange “O” logo — similar to how it issues its Visa and Mastercard credit cards.

However, don’t expect your card to go away. Capital One is buying a valuable asset.

What if I use a Capital One Visa or Mastercard?

Capital One is one of the largest issuers of Visa and Mastercard credit cards in the nation and that is not expected to change, at least for some time. Michael Rhodes, chief executive of Discover, said the deal “brings together two strong brands with enhanced ability to accelerate growth.” However, the Wall Street Journal reported that Capital One plans to migrate some Visa and Mastercard holders to Discover.

Burbank, CA - January 10: Husband and wife Xavier Coelho-Kostolny and Beccy Quinn pose for a portrait on Wednesday, Jan. 10, 2024 in Burbank, CA. (Jason Armond / Los Angeles Times)

They earn nearly $200,000. Can they afford to have kids in SoCal?

Birth rates have been trending downward in the U.S. for several decades and dropped precipitously during the pandemic. A key reason is the high cost of raising kids.

Feb. 15, 2024

If I can keep my existing credit cards, what is the thinking behind the deal?

Capital One has grown rapidly since it was founded in 1994 and is now one of the nation’s largest banks. A big part of that growth has been its issuance of credit cards by the nation’s two leading card networks, Visa and Mastercard, with a focus on subprime customers who carry balances. Now, with Discover, it would also own its own network, similar to how American Express issues its own cards.

What is the advantage for Capital One of owning a credit card network?

Discover, originated by Sears in the mid-1980s to get into the financial services business, has a network of 70 million merchant acceptance points in more than 200 countries and territories, according to the deal announcement. Capital One said the deal is a “key foundation” in its “quest to build a global payments company.”

Still, Discover is the smallest of the four U.S. global payments networks, also trailing American Express. The merger could result in its expansion, providing more competition to Visa and Mastercard, which are sometimes referred to as a duopoly, said Ian Katz at Capital Alpha Partners.

What are some of the downsides to the deal?

Consumer advocates are wary of large mergers, especially in the financial services industry, contending that consolidation can lead to higher costs for consumers in the form of interest rates and fees, whether in the insurance, mortgage or credit card markets. Also, critics say, larger financial institutions tend to have inferior customer service. Discover, which has focused on prime customers with better credit ratings, has a reputation for superior customer service.

Is anyone opposing the merger?

The National Community Reinvestment Coalition immediately came out against the deal, noting that a report last week by the Consumer Financial Protection Bureau found that small banks and credit unions offered credit cards with significantly lower interest rates than large banks in the first half of 2023.

“This deal is not likely to create public benefits that outweigh its adverse effects. On that basis, we’re opposing it and would encourage regulators to block it,” NCRC Chief Executive Jesse Van Tol said.

Also, there was concern from Senate Democrats, including Ohio Sen. Sherrod Brown, chair of the Senate Banking Committee, who vowed to closely monitor the deal so it “doesn’t enrich shareholders and executives at the expense of consumers and small businesses.” Sen. Elizabeth Warren of Massachusetts came out in opposition.

How will shareholders make out?

The merger is structured as an all-stock deal, with Discover shareholders receiving 1.0192 Capital One shares for each of their Discover shares. That would give Discover shareholders a 26.6% premium, based on Discover’s closing price of $110.49 on Friday. When the merger closes, Capital One shareholders would own about 60% of the combined company, and Discover shareholders the rest.

FILE- In this Nov. 13, 2018, file photo a carved mountain goat looks down at the lower level in REI Co-op's flagship store in Seattle. The usual advice is “buy experiences, not things.” But that requires a deeper dive. A bicycle can provide an experience, and a new camera can preserve one. So buy experiences, especially with other people, but also think about buying material things that allow you to have experiences or enhance them. (AP Photo/Elaine Thompson, File)

REI to close its Santa Monica store, the retailer’s second move out of a bustling city center this month

Outdoor retail giant REI is closing its Santa Monica location Feb. 29. It recently opened a store in nearby Marina del Rey.

Feb. 16, 2024

What is the chance that such a large merger will be approved by regulators?

The deal could come under increased scrutiny by the Office of the Comptroller of the Currency (OCC) under a proposal last month by the regulator to give it more time and expand its criteria for reviewing mergers. That follows an announcement last summer by the Federal Reserve that indicated it also may strengthen merger oversight after the crisis last year that saw the failures of Silicon Valley Bank and other regional lenders.

Does Capital One have anything to worry about?

Capital One was fined $80 million by the OCC in 2020 for lapses in its failure to establish what it called “effective risk assessment processes” prior to moving information technology operations to the cloud — and then failing to correct the deficiencies in a timely manner. It was previously fined $100 million in 2018 by the regulator for deficiencies in the bank’s anti-money-laundering program.

What about Discover?

The company has just gone through management turmoil. CEO Roger Hochschild resigned in August after the company said that it misclassified some credit card accounts into its highest pricing tier as far back as 2007, which resulted in merchants being charged more for accepting the cards for payment. The board vowed to improve the company’s governance.

Bloomberg News contributed to this report.

More to Read

The Capital One Bank Headquarters is pictured on July 30, 2019 in New York City. - A hacker accessed more than 100 million credit card applications with US financial heavyweight Capital One, the firm said on July 29, 2019, in one of the biggest data thefts to hit a financial services company. FBI agents arrested Paige Thompson, 33, a former Seattle technology company software engineer, after she boasted about the data theft on the information sharing site GitHub, authorities said. (Photo by Johannes EISELE / AFP) (Photo credit should read JOHANNES EISELE/AFP/Getty Images)

Capital One to buy Discover, forming nation’s biggest credit card company

Feb. 19, 2024

File - A Discover card is used to pay for gasoline at a Sam's Club in Madison, Miss., July 1, 2021. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say. (AP Photo/Rogelio V. Solis, File)

Why now is a crucial time to pay off credit card debt

Feb. 9, 2024

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Paramount Global is for sale. Who’s buying and how did we get here?

Feb. 2, 2024

business plan control meaning

Laurence Darmiento covers wealth and dealmakers in Southern California for the Los Angeles Times. He joined the paper in 2015 as an assistant business editor and has overseen finance, real estate and Washington business coverage. Darmiento previously had been the managing editor of the Los Angeles Business Journal and was a reporter for the Los Angeles Daily News and other outlets. A New York native, he is an alumnus of Cornell University.

More From the Los Angeles Times

FILE - Then-CBS president Leslie Moonves attends the CBS Network 2015 Programming Upfront at The Tent at Lincoln Center on May 13, 2015, in New York. Moonves has agreed to pay a $11,250 fine to settle a complaint that he interfered with a police investigation of a sexual assault case, the Los Angeles City Ethics Commission says. (Evan Agostini/Invision/AP, File)

L.A. ethics panel rejects proposed $11,250 fine for Leslie Moonves as too low

Feb. 21, 2024

FILE - Private jets sit parked at Scottsdale Airport Jan. 27, 2015, in Scottsdale, Ariz. IRS leadership said Wednesday, Feb. 21, 2024, that the agency will start up dozens of audits on businesses' private jets and how they are used personally by executives and written off as a tax deduction — as part of the agency's ongoing mission of going after high-wealth tax cheats who game the tax system at the expense of American taxpayers. (AP Photo/Ross D. Franklin, File)

IRS goes after executives using business jets for personal travel in new round of audits

FILE- The seal of the Board of Governors of the United States Federal Reserve System is displayed in the ground at the Marriner S. Eccles Federal Reserve Board Building in Washington, Feb. 5, 2018. Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than before, while growth remains solid and the job market cools. (AP Photo/Andrew Harnik, File)

What’s next for interest rates? Fed minutes suggest cautious approach

A person walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Thursday, Feb. 22, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

Wall Street ends mixed after a late wave of buying

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COMMENTS

  1. What Does Control Mean in the Business Setting?

    Control in general is a device or mechanism used to regulate or guide the operation of a machine, apparatus, or system. Control in a business setting, or organizational control, involves the processes and procedures that regulate, guide, and protect an organization.It is one of the four primary managerial functions, along with planning, organizing, and leading.

  2. Write your business plan

    Executive summary. Briefly tell your reader what your company is and why it will be successful. Include your mission statement, your product or service, and basic information about your company's leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing.

  3. Control plan (Six Sigma)

    A control plan is a document that provides guidance on how to monitor a process. Control plans are part of the fifth and final phase of the Six Sigma process improvement framework. They help businesses standardize newly adopted processes to increase their uptake and longevity. The goal of the control plan is to provide guidance so that a ...

  4. Strategic Control: Breaking Down The Process & Techniques

    Strategic control is a way to manage the execution of your strategic plan. As a management process, it's unique in that it's built to handle unknowns and ambiguity as it tracks a strategy's implementation and subsequent results. It is primarily concerned with finding and helping you adapt to internal or external factors that affect your ...

  5. The 3 Types of Business Controls

    The 3 Types of Controls: Visual, Procedural, and Embedded. 1. Visual controls. These include checklists, dash boards, scorecards, budgets, etc. They let you SEE that the right things are happening ...

  6. How to Monitor & Control Your Business Plan

    Business and marketing plans overlap in several ways, so reviewing both documents simultaneously on a regular basis helps you monitor and control the goals and measurements of each plan.

  7. How To Write A Business Plan (2024 Guide)

    The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit in the current market or are ...

  8. Business Plan

    A business plan should be structured in a way that it contains all the important information that investors are looking for. Here are the main sections of a business plan: 1. Title Page. The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date ...

  9. Business Plan: What It Is + How to Write One

    A business plan is a written document that defines your business goals and the tactics to achieve those goals. A business plan typically explores the competitive landscape of an industry, analyzes a market and different customer segments within it, describes the products and services, lists business strategies for success, and outlines ...

  10. Business Plan: What It Is, What's Included, and How to Write One

    Business Plan: A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a ...

  11. What is a Business Plan? Definition, Tips, and Templates

    If capital is a priority, this business plan might focus more on financial projections than marketing or company culture. 2. Feasibility Business Plan. This type of business plan focuses on a single essential aspect of the business — the product or service. It may be part of a startup business plan or a standalone plan for an existing ...

  12. What Is a Business Plan? Definition and Essentials Explained

    It describes the structure of your organization, how it operates, as well as the financial expectations and actual performance. A business plan can help you explore ideas, successfully start a business, manage operations, and pursue growth. In short, a business plan is a lot of different things. It's more than just a stack of paper and can be ...

  13. 6.5 Controlling

    Controlling is the process of assessing the organization's progress toward accomplishing its goals. It includes monitoring the implementation of a plan and correcting deviations from that plan. As Exhibit 6.6 shows, controlling can be visualized as a cyclical process made up of five stages: Exhibit 6.6 The Control Process (Attribution ...

  14. Complete Guide To Control Mechanisms In Business

    Because they are subjective, these controls vary from business to business; however, they all work toward the improvement and success of a company. The most frequently used control mechanisms are: Organizational structure. Human resources. Economic resources. Schedules. Operational procedures. Setting goals. Training.

  15. What Is a Business Plan: An Introductory Guide

    To get a better sense of what a 21st century business plan is, it's best to look at what it's not. Or, more specifically, what it's not anymore. When most people think about a business plan, the first thing that usually comes to mind is an incredibly dense, 50-plus-page manifesto that's as hard to write as it is to read.

  16. 11.4 The Business Plan

    Create a Brief Business Plan. Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business.

  17. 15.10: What Does Control Mean in the Business Setting?

    Control in general is a device or mechanism used to regulate or guide the operation of a machine, apparatus, or system. Control in a business setting, or organizational control, involves the processes and procedures that regulate, guide, and protect an organization.It is one of the four primary managerial functions, along with planning, organizing, and leading.

  18. Business Process Control Goals and Control Plans

    Our working definition of internal control describes it in the broad sense of both selecting the ends to be attained (control goals) and specifying the means to ensure that the goals are attained (control plans).Control also extends to the processes of reviewing a system periodically to ensure that the goals of the system are being achieved, and to taking remedial action (if necessary) to ...

  19. Business plan

    Clawback. v. t. e. A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it ...

  20. Control Plan

    What is a Control Plan. The Control Plan is a document that describes the actions (measurements, inspections, quality checks or monitoring of process parameters) required at each phase of a process to assure the process outputs will conform to pre-determined requirements. In simpler terms, the Control Plan provides the operator or inspector ...

  21. What Are the Control Systems of a Business?

    Business control systems consist of procedures and processes, which help an organization achieve its mission and objectives. Controls define how employees should conduct themselves and perform job duties. After business owners and managers implement standards, they must track and monitor performance. Systems require ongoing modifications and ...

  22. Cost Control: How Businesses Use It to Increase Profits

    Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares actual results to the budget ...

  23. What Is a Business Continuity Plan (BCP), and How Does It Work?

    Business Continuity Planning - BCP: The business continuity planning (BCP) is the creation of a strategy through the recognition of threats and risks facing a company, with an eye to ensure that ...

  24. What Is an MBA? About the Degree, Programs, Jobs, and More

    A Master of Business Administration, or MBA degree, is a graduate-level business and management degree with a focus on leadership and managerial skills. By earning this degree, you can equip yourself with the skills and knowledge to accelerate your career, transition to new industries, or even launch your own businesses.

  25. What does the Capital One-Discover deal mean for you?

    Feb. 20, 2024 Updated 3:03 PM PT. Capital One Financial Corp. announced Monday that it had reached an agreement to acquire Discover Financial Services for $35.3 billion, instantly creating a ...

  26. Judge Engoron's ruling: What will it mean for Trump's businesses?

    Trump and his sons Donald Jr. and Eric will not be allowed to hold officer or director roles at their New York-based businesses for the foreseeable future — Trump for three years, his sons for ...

  27. Want to sell your business? An ESOP might be a good solution.

    Through an Employee Stock Ownership Plan, which allows companies to sell to an employee trust — a trust that invests in the shares of the company and parcels them out to employees, often at a ...