Business Strategy
Task 1: The role that objectives play in the process of strategic planning
Strategic planning is the process of developing and maintaining a strategic fit between the organisation’s objectives and resources and the changing market opportunities. This is generally regarded as corporate planning because it deals with the whole organisation. The strategic planning should base upon clear objectives in order to define the direction of all other plans. In definition, “objectives are the specific outcomes that an organisation wishes to achieve by carrying out its activities.” Objectives are the expected outcome of programmes of activity, and therefore they play a central role in planning. The importance of
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After that, the organisation should generate a set of alternative strategic options to satisfy objectives and then make a choice of preferred option based on rational and objective criteria of evaluation. The rational approach offers many advantages to the organisation when it intends to fill the planning gap: (1) identifies risks; (2) forces managers to think; (3) clarifies objectives; (4) allocates responsibility and so on. However, in some aspects, it is pointed out that the rational model might fail due to the dynamic changes in the environment. It tends to be too rigid and restricts innovation. Moreover, it is hard more or less to predict long term developments in some industries, especially fashion areas. The rational model therefore is likely to work well in stable environments. After Sony and Ericsson had merged their handset operations in 2001, they decided to establish the subsidiary in China after a clear analysis of Chinese market and a deep consideration. The objectives of the long term development aimed to make GSM handsets for the market and set up a platform to introduce 3G handsets when the technology is introduced to China.
(b) Incremental
The incremental model involves small scale extensions of past practices. It is helpful to avoid major errors since all the possible options may not be evaluated by the managers in reality. The managers will regard this as a more acceptable strategy because consultation, compromise and accommodation are built into
A strategic plan is a tool that delivers guidance in achieving a mission or goal with maximum proficiency and control for an organization. Strategic planning is used to transform and revitalize organizations. The plan helps provide an inclusive understanding of opportunities and challenges both internally and externally for the organization. The plan delivers an assessment of the strengths and limitations that are realistic within the company. A well-developed strategic plan will offer a comprehensive approach and empowerment for the stakeholders involved. It is an opportunity for learning and understanding priorities that will drive the business to succeed. Jones (2010), describes how in health care organizations, strategic plans
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 an integral process of an organization defining its strategies and direction and making decisions to allocate available resources to peruse laid strategies, which provides the organizations which a competitive edge over their competitors.
Strategic planning involves taking information from the environment and deciding upon an organizational mission, and upon objectives, strategies, and a strategic architecture. There are many different ways to go about deciding on your mission. Michael Porter, a researcher from Harvard, had a few ways for developing frameworks for developing an organization’s strategy.
Strategic planning is the management activity of an organization to achieve the organization’s goals through setting priorities, focusing activities and resources, working of employees and stakeholders, agreement establishment, and evaluation of the organization’s direction (Balanced Scorecard Institute, 2015).
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
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities as well as emerging market conditions and opportunities. This process begins with a clear company mission statement. However, this is only a small piece of a dynamic and perpetual process. Other activities involved with strategic planning also include setting supporting organizational objectives, designing a sound product mix as well as coordinating functional strategies. Strategic planning works to set the groundwork for the rest of the subsidiary planning functions in the company.
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.
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy (Armstrong, 1986). In order to determine the direction of the organization, it is necessary to understand its current position and the possible avenues through which it can pursue a particular course of action. Generally, strategic planning deals with at least one of three key questions:
Initially it would appear that Sony are positioned marginally on the incorrect side of the continuum, as the majority of their business is conducted in an emergent environment (see Appendix pwc). However, the reasoning behind this could be to recover from previous financial losses and make a return. Song states “Strategic planning has a negative effect on innovative activity but a positive effect on financial performance” (Song). Sony would appear to be attempting to make financial gain, as
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 planning is the process of gathering information from stakeholders, market players, professional entity, and government agency. The purpose of gathering information is formulating a realistic and a workable framework that any organization can implement and work with. Evaluation of information is a key aspect in determine the kind of plans that the organization wish to a chive over certain a period. Strategic planning ensures the implementation is, crafted well, and parties involved be acquitted with it. Developing a good Strategic plan helps a company to implement its missions and visions effectively, and helps the company to evaluate
Strategic planning clearly defines organisations’ objectives and assesses both the internal and external situation to formulate strategy, implement the strategy, evaluate the progress, and make adjustments as necessary to stay on track (Bradford et al, 2008). According to Robbins and Coulter (2005), the strategic management process model is given below:
Strategic Planning is the process of developing and maintaining a strategic fit between the organizations goals and capabilities and its changing marketing opportunities.
Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals,