Remember, Smith Company stated that Customer Service was of prime concern. Since this is the case, the company should be st ructured following the concepts of TQM, Total Quality Management. Customer service, then relate s to how each entity reacts and treats each other. Organizational structure will also determine the companies code of ethics, dress code, personnel policy, labor relations. It is here that the initial departments will be defined, their roles and job descriptions.
Organization structure is the skeleton to company, the business plan is the nervous system.
Management and the employees are the brains, and if sales is food to the company, the financial position or cash flow is the life blood of the company. The proforma financial statement that are created with the business plan, must be as accurate as possible. These financial statements are based on the business and marketing plans. They should be able to tell management what is possible and what is not possible based on cash availability. They will tell management when they will need short term or bridge loans or when they will need long term financing to fulfill the requirements of the business plan.