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.…
“For that reason, strategic planning is a method of giving the direction and aligns the firm in relation to the surrounding environment and be competitive. Besides being as a management tool in a firm, strategic planning provides preparedness and modes of response to the environment (Wilson and Eilertsen, 2010).”…
Strategic planning: The managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.…
To get ready for strategic planning, an organization must first assess if it is ready. While a number of issues must be addressed in assessing readiness, the determination essentially comes down to whether an organization's leaders are truly committed to the effort, and whether they are able to devote the necessary attention to the "big picture". For example, if a funding crisis looms, the founder is about to depart, or the environment is turbulent, then it does not make sense to take time out for strategic planning effort at that time.…
Strategic planning is one of the key building blocks for ensuring that an organization is successful. An organization must know what the goals of the organization are and what processes are essential for success. A successful strategic planning process encompasses and engages performance improvement and outlines the uses of information systems within the organization. Strategic planning is management tools that can assist a healthcare organization reach its goals by using the most efficient resources and energy to achieve quality care. A strategic plan gives an organization shape and defines what an organization is by answering, what it does, why it does it, and what the desired future for the organization is (NAMAC, 2009). Five processes exist in strategic planning, mission and objectives, environmental scan, strategy formulation, strategy implementation, and evaluation and control, when used properly these processes will help establish the framework to be successful (QuickMBA, 2014).…
Keeping in mind the goal of maximizing stakeholder wealth, companies should develop the strategic plans, which can help to move the business forward. “Strategic planning is an organization 's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people”…
Strategic planning is the process followed by an organization in which it defines its strategies and makes plans for proper allocation of its available resources to achieve its objectives. While developing a strategic plan, it is essential to consider the various internal organizational factors in order to help the plan succeed. The internal organizational factor comprises of mission, vision, values and guiding principles, strategy and strategic objectives of the organization. Before creating any strategic plan, it is essential to know where the company is standing and where the company intends to go. The company must look at their have a look at the mission statement and the vision statement of the organization and then they must match it with the required demands and then frame the strategic plan. The mission statement depicts the purpose that an organization has and vision statement determines the future by formulating a picture of the organization. Therefore, they are the most important internal considerations for the development of a strategic plan .…
Strategic planning: matching organizational objectives and capabilities to the anticipated demands of the environment to produce a plan of action that will ensure achievement of objectives.( Denhardt & Denhardt, 2010)…
Identification of metrics is a fundamental component of measuring the effectiveness of a business plan or a strategic plan. Metrics help organizations understand the current business climate, the competitive positioning and assists in planning. I did not realize the level of difficulty in the selection of metric until thinking about which…
In society there are hundreds of companies competing for your business on a day to day basis. As a management team it is crucial to understand strategic planning, and know how it can help you grow as a company. In corporate terms, strategic planning is making a plan as a company in order to achieve long-term goals and objectives. Upper management must think strategically first, then apply that thought to a process. The strategic management process is best implemented when everyone within the business understands the strategy. There are five stages for the management team to understand they are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.…
The strategic management process play a critical role in the success of an organization’s success as this ongoing process of the business process gives corporations (profit and nonprofit companies) the ability to clarify and achieve their long-term organizational goals and objectives (Applied Corporate Governance, 2009). Strategic management does this by combining decisive planning and consequential actions so that businesses can evaluate the controls of their operations and determine if their organization should implement a new business strategy to adjust to the constant changes (technological, competitors, financial, etc.) in today’s business market.…
The Malcolm Baldrige National Quality Award (MBNQA) – now known as the Baldrige National Quality Program-has been one of the most powerful catalysts for improving organizational performance in the United States (The Collier and Evans (2011) textbook). Strategic planning is applicable for any type of business entity or organization. However, people tend to think that it is only meant for large businesses. Strategic planning matches the strengths of an organization to open opportunities. In order to be effective, an organization needs to collect, screen, and analyze information about its environment. The organization also needs to have a clear understanding of its strengths and weaknesses and develop a clear mission, goals, and objectives (Wikipedia, n.d.). The organization engages its current state and initiates a plan of action to be more successful. The Strategic Planning category examines how your organization develops strategic objectives and action plans. Also examined are how your chosen strategic objective and objectives and action plans are implemented and changed if circumstances require, and how progress is measured. Matching their strengths to available opportunities is performed through a self-assessment using the Baldrige Criteria for Performance Excellence can help an organization achieve high performance and move toward performance excellence (Baldrige.com). If the organization isn’t ready to apply for the Malcolm Baldrige National Quality Award, the Baldrige criteria are a framework for evaluating the organization’s processes and the impact on results, and its progress toward their goals and objectives.The first health care organization to receive the award was SSM Health Care (www.nist.gov/baldrige/ssmhealth.cfm) of St. Louis, Mo., in 2002.…
A strategic plan is a high-level overview of the entire business, its vision, objectives, and value.CITATION MIK13 \l 1033 (Mikoluk, 2013) Strategic planning is also the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its external opportunities in order to maintain competitive advantage. Strategic plan helps manager to make fundamental decisions and define the action or steps that guide what the organization intends to achieve with a focus on the future. Strategy planning can be implemented at three different levels, which are corporate level, business unit level and functional level.…
In Collis and Rukstad (2008) view, organizations create or sustain competitive advantages through careful analysis, decision-making, and planned action – strategic management. The authors consider strategic management a process whereby organizations integrate examination and analysis. When organizations carefully examine their mission, values, and visions, they increase their chances of clearly analyzing those environmental factors with potential to impact the company’s strategic objectives (Collis & Rukstad, 2008).…
Mintzberg, H., 1994. The fall and rise of strategic planning. Harvard Business Rev., 72: 107-114.…