26 THE PLANNING AND CONTROL PROCESS INVOLVES BOTH MANAGEMENT AND THE ENTREPRENEUR AND IS DIVIDED INTO SEVERAL PHASES: 1. Why do I exist? - Define your Art/ company mission: which is the role that the company wants to play in the market? Identify its ultimate goal in terms of growth, development and image; 2. Where am I? - Analysis of the starting situation: this analysis highlights the environment in which your Art/company operates and its sector (expected demand for products, supply, number of competitors, ...). Another important element of this phase is the identification of the so-called critical success factors (CSF), i.e. those elements that most influence the success and performance of a company. 3. What makes me myself? – Evaluation of strengths and weaknesses: strengths are the factors and characteristics that determine the success of your Art/ company (or a particular product) within the industry in which it operates. The weaknesses are the same factors and characteristics considered in relation to the strongest competitor; 4. Which is my destination? - Definition of objectives: This is a very important phase in which the contours of the company’s future are set. The entrepreneur specifies the results (qualitative and quantitative) that he wants to achieve in a certain period of time; 5. How to make my dreams possible? - Formulation of business strategies: action programs are defined that make it possible to finalize the use of resources to achieve the objectives. The strategies are formalized in function plans that are contained in the general business plan, which is divided into: • business plan; which summarizes the costs and revenues forecast by the company’s departments for the time span considered • investment plan; which summarizes the nature and amount of all the investments and related disinvestments planned for the time frame considered • financial plan; which shows the capital requirements necessary for the planned investments; and • capital plan; which shows the foreseeable effects of implementing the plan on the company’s capital structure; What are my resources? - Approval and execution of the strategic plan: annual operating programs are prepared, which are translated into the budget.
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