Relationship Between Decision Taking By Pm & Business Strategy

| Most successful companies utilize business strategic planning to set priorities and goals for the organization's future; outcomes include short-term goals and long-term strategies.  A clearly written, well designed strategic plan can align business units, divisions and employees so that the vision of the management team and the mission of the company can be fulfilled.  As companies evolve and the environment changes it is critical for companies to maintain a disciplined execution of the strategic plan.However, if they are not

Organisations today find themselves operating in an environment that is changing rapidly. The process of analysing the implications of these changes and modifying the way that the organisation reacts to them is known as business strategy.

Strategic planning determines three things for an organization. First, it tells the organization where it is going over the next year or more. Second, it explains how it is going to get there. Finally, strategic planning allows the organization to know whether or not it has achieved its desired outcome (Banyenzaki, n.d., para. 4). The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program (High performance coaching, 2005). When Hot Topic first came to life it was not as successful as what the founder, Orv Madden, had hoped for (Hot Topic, 2006). However, with a bit of strategic planning, his company would soon be moving forward into a future of net profit rather than net loss.

Strategic planning within a company is a tool used in companies that help mature areas in total quality management. This type of planning creates a cohesive management system for lower level employees to better adapt in. “Strategic planning determines where an organization is going over the next year or more and how it 's going to get there. Typically, the process is organization-wide, or focused on a major function such as a division, department or other major function”(McNamara, 2008). In order to plan effectively one must first make a clear assessment of the plan and have an analysis on the corporations mission statement and objective.

Strategic planning is designed to leverage the strengths of a firm while minimizing the effects of its weaknesses.  It is difficult to know the potential advantage a firm may have unless external analysis is done well.  For example, a company may have a talented marketing department or an efficient production system.  However, the organization cannot determine whether these internal characteristics are sources of competitive advantage until it knows something about how well the competitors stack up in these areas.

Strategic planning can dictate the success of any organization if properly planned as well as the failure of an organization if not implemented as planned. Strategic planning is all about making choices. It is a process designed to support leaders in being intentional about their goals and methods. Simply stated, strategic planning is a management tool, and like any management tool, it is used for one purpose only—to help an organization do a better job. This portion of the strategic plan will explain why an

In his article, “The Fall and Rise of Strategic Planning,” Henry Mintzberg (1994) provides his views on the process of strategic planning. He offers that most companies and organizations start a strategic planning process with little understanding of the definition or actual purpose of planning. He tends to admonish much of the conventional understanding concerning strategic planning and proposes his interpretations. He states that “the most successful strategies are visions, not plans” (Mintzberg, 1994, p. 107).

According to Meyer, (2010), strategy is the action that company can take to achieve its desired goals. When it comes to a company, thinking can be said to be either long-term or short-term. When translated into action, it is what is called operations or projects. However there are differences between operations and

Strategic planning involves making decisions about the organization’s long-term goals and strategies and how the organization decides to implement their goals (Bateman, Snell, Konopaske, pg. 113). Strategies help organizations to have a clear perspective on how to go about accomplishing the goals they have in place. All organizations have a clear vision of what their mission and purpose as a company is, they know how to fulfill the mission, vision, and purpose and they know how to ensure that they accomplish all their goals. However, the route the organization takes to define these things determines how effective they will be.

The Case Study concerning MacFarlane solutions is an interesting one to note down regarding strategic planning in an organization. From the information given, it appears that the small business expanded merely due to the insight of Bill MacFarlane and the planning that he gave forward. (McDonald 2011 pg. 736) Bill started off after working in a firm and having an experience of more than forty years. He specialized in what he knew and then gave forward what he was good out. There was risk in his ventures as the expert started out, however he trusted his instincts and went out with the planning.

Strategic planning plays a crucial role in the successful journey of the companies and it open new roads of opportunities and success for the business organizations. The business organizations focus mainly on secrecy of the strategies from all within or outside the organization for raising the level of successful achievement of the goals of the company. Different companies choose different means of strategic planning as some companies keep the strategies secret even from the middle and lower management and only senior

According to literature, strategic planning is vital for strategic management. Burgelman (1994) points that strategic planning is a process which decides how, when and who is going to plan and how the results will be implemented. Drucker (1974) identified that the planning for an organization’s future that includes setting major overall objectives, the determination of basic approaches to be used in

‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully. Strategy formation may take various forms such as implicit, explicit or emergent. Implicit strategy is a strategy formed by intuitions of an individual. As per implicit strategists, strategic management is about reading the environment

Per the text Strategic Management and Business Policy, a business strategy “describes a company’s overall direction in terms of its general attitude toward growth and the management of its various businesses and product lines. Corporate strategies typically fit within the three main categories of stability, growth, and retrenchment.” (pg.19) Also mentioned in the text business strategy is “usually occurs at the business unit or product level, and it emphasizes improvement of the competitive position of a corporation’s products or services in the specific industry or market segment served by that business unit. Business strategies may fit within the two overall categories, competitive and cooperative strategies.”

Strategic planning is central to management study. It defines the long term direction for the company and all other business functions orbit around their established strategies. This article studies how a company formulates business-level strategies, optimize their competitive positioning and obtain a competitive advantage over their rivals.