Advantages of Strategic Planning
Strategic Management Assignment 1
Table of contents Page
1. Introduction 2
2. Advantages of Strategic Planning 2.1. Financial Advantage 2
3. Disadvantage of Strategic Planning
3.1 Distortions and Deceptions 3
4. Friedman view of business social responsibility 3
5. Having a look at Sasol’s Social contribution 5
6. References 6
1. Introduction
There are a number of advantages and disadvantages of strategic management. To me the advantage that stood out was the financial advantage organisation can achieve by implementing a strategic planning process. There are evidence of this as a study was done on banks in the United States - they do show a financial advantage over bank that have not implemented a strategic planning process.
The disadvantage that stood out was Distortions and Deceptions and as explained how people can make a decision, the wrong decision and it can have a huge negative implication on the organisation. Some time because of just plain and simple human error or people are over optimistic or simply because they are trying to benefit them self’s.
Milton Friedman's statement that a business's social responsibility lies in making profit has shown a controversial point of view in modern business. Some people believe in Friedman's ideas while others do not.
Include is an example of Sasol’s social responsibilities.
2. Advantages of Strategic Planning
2.1. Financial Advantage
The intensity with which company’s engage in the strategic planning process has a direct, positive effect on the company’s financial performance, and mediates the effects of managerial and organizational factors.
Gup and Whitehead (1989) tested the notion that strategic planning only pays off after a period. They found no statistically significant relationship between the length of time company’s had been engaged in the strategic planning process and their financial
Table of contents Page
1. Introduction 2
2. Advantages of Strategic Planning 2.1. Financial Advantage 2
3. Disadvantage of Strategic Planning
3.1 Distortions and Deceptions 3
4. Friedman view of business social responsibility 3
5. Having a look at Sasol’s Social contribution 5
6. References 6
1. Introduction
There are a number of advantages and disadvantages of strategic management. To me the advantage that stood out was the financial advantage organisation can achieve by implementing a strategic planning process. There are evidence of this as a study was done on banks in the United States - they do show a financial advantage over bank that have not implemented a strategic planning process.
The disadvantage that stood out was Distortions and Deceptions and as explained how people can make a decision, the wrong decision and it can have a huge negative implication on the organisation. Some time because of just plain and simple human error or people are over optimistic or simply because they are trying to benefit them self’s.
Milton Friedman's statement that a business's social responsibility lies in making profit has shown a controversial point of view in modern business. Some people believe in Friedman's ideas while others do not.
Include is an example of Sasol’s social responsibilities.
2. Advantages of Strategic Planning
2.1. Financial Advantage
The intensity with which company’s engage in the strategic planning process has a direct, positive effect on the company’s financial performance, and mediates the effects of managerial and organizational factors.
Gup and Whitehead (1989) tested the notion that strategic planning only pays off after a period. They found no statistically significant relationship between the length of time company’s had been engaged in the strategic planning process and their financial
References: Bartkowiak, G. (2006). Practical Aspects of a Social Responsibility in Business. Dialogue & Universalism, 16(5/6), 133-140. Retrieved October 3, 2007, from Academic Search Complete database. Lenkowsky, L. (2006, December 7). Milton Friedman Was Right About Philanthropy After All. Chronicle of Philanthropy, pp. 48. Retrieved October 3, 2007, from Academic Search Complete database.