The Effect of Formal Strategic Planning on Firm Performance and Job Satisfaction

Better Essays

Telekom Malaysia International (Bangladesh) Ltd. (TMIB), established in 1996, is a joint venture company between Telekom Malaysia Berhad (TM) and A. K. Khan & Co. Ltd. It operates under the brand name ‘AKTEL’, which is one of the largest telecommunication service providers in Bangladesh. AKTEL became the first mobile operator to connect Teknaf and Tetulia, the northern and southern most points of Bangladesh respectively. AKTEL was first to provide seamless coverage along the Dhaka-Chittagong highway, and covers all 61 allowable districts of Bangladesh. It has more than six million subscribers nationwide. AKTEL also has the widest international roaming service in the market, connecting 440 operators across 185
…show more content…
Previous researchers have agreed that the strategic planning process consists of three major components (Hopkins and Hopkins, 1997):
(1) Formulation (which includes developing a mission, setting objective, determining the external and internal environments, and evaluating and selecting strategy alternatives).
(2) Implementation.
(3) Control.

The nature of strategy to adopt for an organization raised the so-called “design versus process” debate, which emphasizes the difference between deliberate and emergent strategies (Mintzberg and McHugh, 1985; Mintzberg and Waters, 1985). Deliberate strategies are defined as strategies that are formulated in advance, whereas an emergent strategy represents an evolving strategic pattern with or without advance planning. However Grant (2003) argued that this debate has been based upon a misconception of how strategic planning works in the real world. From his investigation of the strategic planning practices of the major oil companies, Grant (2003) derived that strategic planning “can be described as processes of “planned emergence”. The primary direction of planning was bottom-up – from the business units to the corporate headquarters – and with business managers exhibiting substantial autonomy and flexibility in strategy making. At the same time, the structure of the planning systems allowed corporate management established constraints and guidelines in the form
Get Access