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Pros and cons of strategic planning
Why it is necessary to plan
Importance of planning in an organization
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The reasoning of Grant (2008) highlights the distinction and the main point behind it: The reason why strategic management has been separated from the long term planning and the corporate planning category is partly to allow strategy to be separated from planning and that strategy formation should be emphasized as a management function. If strategy formation is viewed as a part of the management process, it is easier to understand how important role strategy plays within the organization (Grant, 2008, p. 482.). This already leads us to another issue, namely to the nature of the strategy formation process. As regardless whether a formal or informal solution is in the focus, it never comprises of one single decision. It includes both the pre-decision …show more content…
those main steps through which the planner assists in planning..." In his proposal (Hussey, 1983, pp. 50-51) provides an elaborate job responsibility for the planner, who directly reports to the CEO, and whose main responsibility is to "assist the executive management in the systematic planning of the corporate future". He provides further details in 14 items, then covers the educational requirement: „should have higher education … however no need to be an expert in a particular area”. It is an especially interesting feature that "should act decisively and should not shy away from making unpopular suggestions". The author in addition provides details regarding the content of the planning guide. Summing it all up; an internationally acclaimed expert - the book titled The truth about corporate planning – International Research into the Planning edited by him, presenting the corporate planning practice of different countries was published by the famous Pergamon Press (Hussey, 1983) - in 1979, in the United Kingdom shows a rather strong commitment towards formalized planning and a supporting planner with not a specialized planner qualification, but otherwise with high level of knowledge. Almost at the same time when the planning system is spread, debates are started regarding the formalization (formalizability) and the related organizational frames, strongly …show more content…
For his tough tone I refer to the publication of De Guerney (1974), with the title "Planning the birth of professional planners" who views planners as " a person not responsible for anything, who wants to meddle into everything and who is blamed for planning for the sake of planning and not in order to solve problems". We might think - let me add rightfully - that the theoretical paradigms and the practical experiences of the phases we might put attribute to the 70's, 80's, 90's in the evolution of planning, strategic planning and the subsequent strategic management steps have outgrown and became free of these disputes. Meaning that the referred decades considered as the prime era of strategy formation clarified the limits in formalizability of thinking about the future, the management requirements, technology and organizational framework of strategy implementation. The fact that Mintzberg (1994) wrote (had a reason to write) his high impact book about the rise and fall of strategic planning, which was essentially a severe criticism of formalization proves the exact opposite. As in this book, Mintzberg discusses its "arbitrary formalization, stranglehold" of strategic planning process also expressing criticism of planners. This latter opinion is reflected in an even more pronounced form in his book "Strategic safari" written with his co-authors (Mintzberg et al., 1998), which can be viewed as the summary of the "heyday" already mentioned or even
Kaufman, Roger. Strategic Planning Plus: An Organizational Guide. Sage Publications, Inc.: Newbury Park, California, 1992.
Strategic planning is defined as "an organization's process of defining its strategy, or direction, and making decisions on allocating its resour...
Many theorists (Lynch, 2003, Mintzberg, 1990, Ansoff, 1991) will argue that the two main schools of strategic planning are the prescriptive, also known as intended, and emergent approaches. Both are debated widely about which is the better approach; recognised best by Idenburg (1993). Prescriptive strategies focus on planning; where predictions of the future are made, leading to long term decisions where the main elements of the strategy have been specially planned before being commenced and as stated by Mintzberg, 1990 "Strategy formation should be a controlled, conscious process of thought". The emergent approach relies on the fact that the outcome of the objective is not known; in contradiction to the prescriptive approach it is not a 'controlled, conscious process of thought' and has been described by Downs, et al (2003) as a trial and error process. The importance of strategy within organisations has been discussed as early as the 1950's with ...
...(1980) Defining the Business – The Starting Point of Strategic Planning New Jersey, Prentice Hall
Planning is an essential process in today’s organizations. Based on the three types of managers: top-level (strategic managers), middle-level (tactical managers), and frontline (operational managers), exist three corresponding levels of planning: strategic, tactical, and operational. The purpose of this essay is to focus on the strategic level of planning for the Ford Motor Company; a leader in the global automobile industry. Strategic planning, according to Bateman and Snell (2009), “involves making decisions about the organization’s long-term goals and strategies” (p. 137). This paper will elaborate on six key influential factors: economic, environmental, competition, foreign policy, domestic policy, and innovation; that shape this corporation’s strategic plan. Finally, a SWOTT analysis will be conducted covering the strengths, weaknesses, opportunities, threats, and trends, that the Ford Motor Company has in relation to its business environment.
Fayol (1949, as cited in Mcnamara, 2009) have proposed “planning” as one of the four major functions on...
The American management scientist Joey Ross says a organization without strategy is like a ship without rudder. All its activities are calf round. Corporate strategy, defined by Michael E. Raynor, is a long-term plan of an company that aimed at creating and capturing its value in a specific product market. Vision and mission are two significant parts of the strategy. In short, the vision can be defined as “How to formulate a corporate strategy” and the mission can be defined as “How to implement that corporate strategy”. According to Tim Hannagan, corporate strategy is concerned with the range of a company’s activities in terms of whether this company focus on one part of the business activity or whether it concentrates on many. For example, Tesco, as a food retailer, it mainly sales food and sometimes clothes as well. However, recently Tesco moves into financial services. Moreover, strategy is concerned as a “bridge” or a tool. It matches the resources and the company’s capabilities to itself and finds out the possible opportunities to achieve the business goal. Therefore, Tim Hannagan regards corporate strategy as a strategic planning, “which is concerned with establishing a competitive advantage, sustainable over time, not simply by tactical manoeuvring but by taking an overall long-term perspective which directly influence line management”. Corporate strategy is based the current situation of the company and influence the company’s future. This essay will critically analyse the advantages of developing an effective corporate strategy in 2014 in terms of enterprise resource management, market share and manufacturing capacity. Competitive advantage also takes a significant part in this...
There are different types of strategic planning that are currently in use, since this is a widely debated area of management. However, it is concluded that there are two main schools of thought, the prescriptive approach or the emergent approach (Lynch, 2012). As defined by Lynch, (2012) prescriptive strategic planning is the term given to a strategy whereby the objective of the strategy is defined in advance and the main elements are designed and develop...
Strategic management is a long-term process aimed at achieving organizational goals. Strategy is the employment of resources to gain an objective. Strategic planning and implementation goes far beyond the goals of one leader (Shafritz
The concept of strategic planning is treated differently by urban planners and a researcher in history is because it was not originally intended to be used in urban development. As it will be evident throughout this paper strategic planning are regularly used in the private business sector, whereby businesses will use strategic planning for dealing complex and ongoing process of organizational change. Even when strategic planning did begin to be adopted in urban planning it received mix remarks because it was very different to conventional planning in that "conventional planning tends to be oriented toward looking at problems based on current understanding, or an inside-out mind set. Strategic planning requires an unde...
Strategic management is viewed as the set of decisions and actions that result in the formulation, implementation and control of plans designed to achieve an organization’s vision, mission, strategy and strategic objectives within the business environment in which it operates (Pearce and Robinson, 2007). Strategy formulation has for the past decades been widely regarded as the most important component of the strategic process – more important than strategy implementation or strategic control. Nonetheless, strategic planning has taken on new importance in today’s world of globalization, deregulation, advancing technology, and changing demographics, and lifestyles. At the same time, there is also discussion whether we can separate “execution” and “implementation” from strategy formulation. Roger Martin, a professor and author, has joined the discussion and argue
Oppenheim (2006) defines Strategic Planning as the methodical process by which an organization anticipates and plans for its future by undertaking an examination of the organization and its environment by those who have a stake in its future success.
If asked what strategic planning is one could interpret it as simply a road map that can guide the organization in the right direction. It is very unlikely that an organization would know which direction to take without a sense of direction. Managers are faced every day with decisions that have a major impact on the direction the organization must take, therefore, strategic planning can play an important role in guiding managers in the right direction. In other words strategic planning is a tool that management can use to give them a sense of direction that will guide them in doing a better job and to ensure that all the members of the organization are working toward the same goals
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.
Group 6 Strategic Management Strategic management is the process where organization managers reach the goals and aspirations of the organization on behalf of its owners. This is done through formulation and implementation of ways and methods to fulfill the organizational goals and objectives (Brian, 2011). This is done with in-depth consideration of both the internal and external environments that the organization operates in, in order to allow the organization to make the right decisions. Strategic management is an important element that firms must put together through strategic thinking as well as strategic planning (Nag, R., Hambrick & Chen, 2007). In order for a firm to compete within its industry, it must plan and relate to the industry dynamics, determine its strengths and weaknesses before determining the best way to match and overcome competitors.