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1.

Introduction

This journal is a result of research and proposals by Rosli Mohd Saad, Abdullah Haji
Abdul Ghani and Shuhymee Ahmad from Universiti Utara Malaysia to the Impact of
Practicing Strategic Business Plans on SME Business Performance in Malaysia and the
Effects of Dynamic Outdoor Environment. The discussion in this journal is to give a clear
overview to its target group on the importance of strategic planning which is a long-term
planning process in which the organization will determine its mission and objectives with
resources to achieve the mission set. This suggestion has also been supported by the
author by giving rational-rationality to the need for this journal. The author also provided
suggestions on target groups, objectives and content to be implemented by small and
medium enterprises in Malaysia.

2. Reader Goals

Based on the focus of the study and the journal's proposal paper is addressed to
organizations, especially in the small and medium enterprises in Malaysia. This idea is
then open to all to be discussed and debated to see strategic management requirements
with the performance of small and medium-sized companies in Malaysia.

3. Journal Summary

Overall, this journals are trying to show that strategic management has proven to be the
main weapon in generating competitive business strategies among corporate firms or
large size and can impact on business performance. However, the implementation of
business plans is still limited among Small and Medium Enterprises firms, especially in
emerging and developing countries as well as facing competitive challenges in dynamic
external environments requiring high levels of innovation and innovation. According to
the authors, several previous empirical studies and theories have shown that the
relationship of business plans with business performance and the dynamics of external
environments over business relationship with business performance of Small and
Medium Enterprises is diverse and still limited. That sequence, this study examines and
determines the relationship and influence.

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The authors also gave rationality to this problem using cluster sampling techniques and
postal coding methods. This study involved samples from small and medium enterprise
firms in Malaysia comprising manufacturing or manufacturing sectors and agricultural
sectors. The findings of the study found that the relationship of strategic business plans to
the performance of Small and Medium Enterprises in Malaysia was significant. However,
the discovery of this relationship became insignificant when SMEs operate in a dynamic
external environment. This study suggests that Small and Medium Enterprises continue to
embrace the preparation and implementation of business plans as it has proven to have a
positive impact on business performance. However, according to the authors, small
companies need to have a strong and brilliant performance for business continuity and
sustainability.

Excellent performance makes Small and Medium Enterprises in the industry, low
performance makes Small and Medium Enterprise miserable and moderate performance
makes the Small Enterprise just survive only (Brigham & Houston, 2004). In addition,
outstanding achievers can help the country's economic and social growth (Madrid-
Guijarro, Auken & Garcia, 2007). Nevertheless, the achievement of Malaysian Small and
Medium Enterprise achievement is still relatively simple (Shuhymee, 2010). Small and
Medium Enterprises are forced to face various problems and challenges in order to
achieve a better level (Suraya Ishak et al., 2012). The author also provides a long list of
scholars and scientists who have conducted various research, observations, intellectual
discussions, and produce issuance is related to the management of startegic that can be
referenced, important to researchers and observers of human resource management.
Many of the theories and approaches from these scholars and scientists have also been a
reference to the production of this journal.

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4. Observe

The author has chosen the strategic management theme as the main focus of his writing
this time. This is in line with the main target of his writing which is to Small and Medium
Enterprises in Malaysia to receive the use of strategic management especially in the
Small and Medium Enterprises industry. The writing of this author is more characterized
by a proposal paper but is presented with a set of studies and findings. For researcher
writer choose writing characterized by research and findings is to reinforce the argument
in order to convince readers to accept his opinion.

The author has succeeded in giving a lot of opinions from scholars and scientists on the
awareness of strategic management. Through these opinions and practices, the authors try
to convince the importance of strategic management with organizational performance,
especially in small and medium enterprises in Malaysia. Many writers use scholarly
opinions such as Rosli et al., (2010) which also refers to Dollinger's study (2003)
explaining that organizational resources include activities such as company's formal
reporting system, decision-making systems, information systems, formal planning and
informal planning . According to them, formal planning is a concept and action
implemented and needs to go through a process to achieve the goal.

Additionally, planning can be created through creative generation and screening of ideas,
completely converted into document forms, then implemented and evaluated and
improved (Rosli et al., 2010). In addition, the concept of planning has also been applied
by humans and is largely drafted in battle to overcome enemies since 500 BC (Bracker,
1980). He explained that strategic planning in the context of war meant to plan the
destruction of the enemy through the use of resources effectively. Sun Tze has realized
the importance of this design and has written in the book "The arts of war in 500 B.C".
This book teaches about the importance and usefulness of resources such as land, water,
fire and wind in battle. These resources have been structured and strategically designed to
cope with the enemy in battle. The planning requirements are more prominent in the 20th
century as the business world continues to grow and compete in an uncertain
environment.

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Sources needs to be taken care of. A more formal business plan needs to be established to
manage key sources of the firm or organization (Dollinger, 2003). Additionally, business
plans have been seen as a process comprising formal and informal business plans. The
informal business plan is concise and illustrates the initial idea of the business. The
formal business plan is comprehensive and contains elements that suit business-specific
needs (Scarborough, 2012). Among the elements or components that need to be in the
formal business plan are the firm's information and management, business vision and
mission, product or service, market analysis and competing firms, detailed marketing and
financial information strategies. In addition, this study also aims to investigate how far
the startegic management system can affect the performance of small and medium
enterprises in Malaysia.

5. Content Review

Overall, the content of this paper is to examine the relationship between business plan
with business performance and external environment influences among small and
medium enterprise firms consisting of 177 firms from the manufacturing and agriculture
sectors in Malaysia. The findings of the study found that business plans had significantly
connected positively with business performance. This means that business planning
factors are factors capable of impacting positively on business performance on small and
medium enterprise firms in Malaysia. However, this relationship becomes insignificant
when interactions with dynamic external environments occur. This explains that business
plans are not a factor in business performance when firms operate in a dynamic external
environment. In addition, the author of this journal also presents some facts. Facts
submitted by the writer are that strategic management exists as a result of the launch of
strategic planning that has two main components. The first component is 'Strategic Issues
Management' itself which is an extension of Strategic Planning. The second component is
to equip an executive with a constant alertness and willingness to deal with contingencies
in an organization. From the main fact that the author tries to convince his target groups
about the need to develop strategic planning skills, managers will be able to form a clear
and complete concept for an organization.

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This process will help managers assess the internal strengths and external strengths of
their organizations in addressing the challenges. With this plan, the goals and objectives
of an organization will be clearer and easier for the manager to make a decision to
achieve that goal. In terms of writing style, the author's writing style is more about giving
arguments, opinions and evidence and support from scholars, scientists, politicians
irrespective of the outside or the country. However, the writer uses a language that is
straightforward and easy to understand about the massage that he attempts to bring in his
writing. Through the support and proof of successes presented, the writer also thinks to
convince readers of the need for strategic business plan relationships on small and
medium enterprise business performance. From the point of credibility, for my opinion,
there is a high credibility of the author's writing content. This is because every author's
argument is accompanied by the support of scientists, proof of practice and a series of
convincing successes. For researchers writer Berjaya assured readers with the credibility
of this content presented.

6. Implication of Study

Through this writing the author has expressed some implications. This study has given
some implications to the academic field in the form of new knowledge, consolidation of
past findings and also as a platform for future research in resource management and
external environment that can be seen from theoretical and research methodology.
Theoretical findings of the study have highlighted the importance of business planning
factors through the fundamental source-based theory. The discovery of the methodology
has also reinforced Muhammad Hasmi et al. (2004) and provides an additional
understanding that geographical areas and larger sample studies do not affect the results
of the study in the context of the relationship between business plans and the performance
of small and medium enterprises in Malaysia. In addition, this study also has implications
for industry, which is an additional form of information to governments, support agencies
and small and medium enterprise management in industries such as manufacturing and
agriculture to give emphasis or priorities to proven business plan factors significant
relationship with business performance.

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This study also provides additional information to the management of small and medium
enterprises in Malaysia to be cautious as business plan factors are not a significant factor
affecting business performance when small and medium enterprise firms operate in an
uncertain dynamic external environment and demand for change rate and innovation the
highest.

7. Research Findings

In line with the authors' findings, the authors have shown that small and medium
enterprise firms in Malaysia that develop and implement strategic business plan activities
have improved business performance. These findings illustrate some general business
plan activities such as the preparation of mission statements, identifying firm goals and
objectives, making internal and external environmental analysis, developing selective
strategies, making the right strategy selection and implementing strategies quickly and
evaluating and making assessment and observation of the business plan process is an
activity that small and medium enterprise firms need to do because these activities are
proven to improve their business performance. Additionally, small and medium-sized
enterprises also need to pay particular attention to some other activities such as the full
involvement of management in preparing strategic business plans, giving important
consideration to short- and long-term strategy selection, providing adequate budget and
providing formal procedures for evaluating and implementing business plans as the study
items also show high mean value and positive inclination to improving business
performance.

Furthermore, the findings of the study also deny the claims of some earlier researchers
who criticize the importance of business plans as a waste, not to be prepared and
provided only by a large firmafirma. For small and medium enterprise firms in Malaysia,
the findings of this study are important information that needs to be understood that
business plan activities are documents that need to be prepared and implemented. This
study has shown that firms of small and medium enterprises that provide and implement
business plan activities in Malaysia can improve business performance. Additionally, the
findings of this study can also set aside a group of researchers and entrepreneurs of small
and medium enterprises who underestimate the need for business plans and maintain the
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actions and conditions imposed by banking institutions to entrepreneurs of small and
medium-sized enterprises seeking capital loans in advance provide business plan
documents. Indeed, what these banking institutions do not only help them to know in
depth the adequacy and capital requirements, the strength of management, the balance of
assets and liabilities, matching equity and debt financing sources and firm liquidity, but
indirectly helped small firms firms and moderately planning, organizing, managing and
controlling the finances and projects financially or effectively.

8. Conclusion

Overall, it can be concluded that the writing of this journal may show Malaysia's small
and medium enterprise firms feel difficult to implement a comprehensive business plan in
a dynamical external environment that is unpredictable, unstable and undergoing high
change and innovation. Additionally, the study of Muhammad Hasmi et al., (2004) has
revealed that small and medium-sized enterprises in Malaysia are faced with the dislike
of making and implementing business plans according to plan. Therefore, efforts need to
be taken to ensure that small and medium enterprise firms in Malaysia who are not
capable of providing innovative and highly competitive strategic business plans are
advised not to operate in a dynamic external environment as it does not have a significant
impact on the firm's business performance.

Reference

Rosli Mohd Saad, Abdullah Haji Abdul Ghani & Shuhymee Ahmad. (2014). The Impact
of Practicing Strategic Business Plans To On SME Business Performance In Malaysia
and Influence Dynamic Outdoor Environment. UNIMAP. Journal of Human
Development and Communication. Volume 3 (Special Issue), 2014 [163-186]

Beaver, G. (2003). Management and the small firm. Strategic Change, 12, 63–68.
Published online in Wiley Inter Science (www.interscience.wiley.com) DOI: 10.1002 /jsc.
623.

Dollinger, M. J. (2003). Entrepreneurship: Strategies and Resources(3rd Ed.). Upper


Saddle River, New Jersey: Prentice Hall.

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Rosli Mahmood, Hoe Chee Hee, Rosli Mohd Saad, Muhamad Shukri Bakar, Muhammad
Yusof Jani, Syahrina Abdullah., et al. (2010) Keusahawanan: Prinsip-Prinsip
Keusahawanan Pendekatan Gunaan Edisi Kedua. Singapore. Thomson Learning.

Muhammad Hasmi, Norliza, Shahrudeen & Sofri. (2004). Business Performance of Small
Medium Enterprise: Strategic Planning and Customer Focus, Conference of Information
Technology and Organization in the 21st Century, Challenges and Solutions, Amman,
Jordan.

Scarborough, M. N. (2012). Effective small business management: An entrepreneurial


approach. International edition (tenth edition). New Jersey. Pearson Education.

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