Business operate with the use of limited resources. This forces management to adapt an outlook that will provide guarantees for the successful conclusion of its various activities. In turn, the guarantees will require sufficient information about what is happening in and out of the business.
Provided with a reason for the guarantees, the small business operator must now find a way to realize its objectives. The identified way is called strategic planning which prescribes the strategy to be adapted. Whether such strategy is correct or not will depend on the skill of the decisionmaker.
Strickland has a comment about the said skill. He said, " the test of good entrepreneurship is whether the chosen strategy produces the desired levels of performance and culminates in the achievements of the target objectives.