Strategic planning is a management tool used by business entities to better perform their business by focusing their energies towards the targeted goals of their shareholders. Strategic planning aims also at setting clear goals and objectives and work on achieving them within a specific timeframe in light of the available human and financial resources in order to achieve the desired future vision. Thus, planning is set in broad lines (objectives) constituting the strategic plan.
On the other hand, business plan represents the detailed components from the investment and operating areas, at which end the objectives set in the strategic plan should be realized by providing the necessary human and physical resources.
Both the strategic plan and the business plan serve to guide the company towards the path of success, as the strategic plan represents the direction while the business plan translates this into figures to enable measurement. This concept optionally applies to all business entities.
What are the companies that should prepare Strategic and Business Plans?
These are the companies subject to the supervision of the Capital Markets Authority in the State of Kuwait, as they should comply with the requirements stipulated in the Executive Regulations of Law No. 7 of 2010, Module Five – Securities Activities and Registered Persons – Article 1-5, Item 2, and Appendix No. 5 that covers some details related to the business plan of companies wishing to apply for a license to undertake securities activities. These requirements should be taken into consideration.
Module 9 – Mergers and Acquisitions – also demonstrates, in Appendix 8 Item 4, the controls of the business plan when executing the reverse acquisition procedure.
Is it necessary for companies’ subject to the supervision of the Capital Markets Authority to engage an investment advisor to prepare the Strategic and Business Plans?
No, but seeking an external investment advisor adds a high added value to the plans as follows:
Having large-scale local, regional and high-end databases covering all business sectors;
Having recent reports and bulletins on future outlook for each business sector;
Having expert advisors in securities activities;
Having financial analysts experienced in historical financial analysis, highlighting the strengths and weaknesses of each individual company; and
Having modern holistic practices for preparing strategy and business plans.
What is the added value to business entities from preparing Strategic and Business Plans?
- Ensuring compliance with the regulatory requirements issued by the Capital Markets Authority.
- Proactive planning for the company’s business.
- Studying the risks associated with the company and direct the business and activities in the best interest of the stakeholders and shareholders.
Why Baker Tilly to provide this service?
Baker Tilly is distinguished by specialist professional experience and offers the following characteristics carrying added values to our clients as follows:
- A global consulting firm operating in the State of Kuwait;
- Baker Tilly has license as an investment advisor from the Capital Markets Authority;
- Local experience under an umbrella of a global network;
- Professional team with in- depth experience in providing investment consultancy services;
- Bilingual team.