Within an organization, different types of planning are necessary to help establish the visions and goals a company has. Strategic and operational planning is essential for the success of a business. For example, Sports Authority has recently filed for bankruptcy, which is likely due to a lack of planning skills. With the addition of strategic and operational planning, the risk of going bankrupt could be significantly reduced. The many planning steps and strategies involved in these types of planning are what eventually produce the most success.
Strategic Planning
Long term planning is essential in a successful organization. This long term planning is known as strategic planning. “During the strategic planning process, organizations usually
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Operational planning is what drives strategic planning goals to a success. On a day to day basis, operational plans are being communicated and decisions are being made. Operational planning is important because it leads to the goals and visions of the organization and by doing that, operational plans must be made daily to keep the organization competitive in the market. Friend & Zehle (2004) discuss operational plans central to the allocation of resources, it uses inputs to scale operations in order to deliver information about all stages of the primary value chain activies and the support of those activities. Without operational plans, an organization would have no way to reach its goals that were set. The market is changing constantly and operational plans help keep organizations making effective …show more content…
Operational plans can be established once a strategic plan has been set because the operations plans feed into the strategic plans. When operational plans are being established, several factors and pieces of information come into play in various decisions. For example, if Starbucks is making an operational plan it will take into consideration the competition, the price for which they get their ingredients, and the price for which they will sell their product. If the competition’s beverage is not as good, and Starbucks is getting their ingredients cheaper than the competition, the price Starbucks puts their product at can become an operation plan. Granted organizations might not be doing this daily, but more quarterly. An operational plan is, “specific plans for low level and day-to-day activities” (Mullane, 2015). Operational plans are the plans that keep the organization moving in the direction it wants to
Operations Management Process is the central arteries within the organization because it produces the planning process for goods and services, which are its reason for existent. Operations management is linked to all organizations as every organization is producing either a product or a service. However, it cannot be said to be the most important function since there are other functional areas and boundaries within an organization. In today's fast changing world, organizations have to have a tendency towards being efficient, effective and innovative to the changing environment to succeed. Operations Management has to use metrics in order for them to accomplish their task and be successful with minimal interruptions within the organization.
The corporate and operations strategy must be intertwined (Jacobs & Chase, 2013). Operations and supply chain strategies are “the setting of board policies and plans that will guide the use of the resources needed by the firm to implement its corporate strategy (Jacobs & Chase, 2013).” Basically, operational strategies correspond to the goals of the corporation, and are how the organization plans on operating in order to on meet the goals of the larger
Continuity of Operations Planning is the process whereby ABC University ensure the continued performance of critical operations when confronted with adverse events such as natural disasters, technology failures, human errors or terrorism. The objectives of the continuity of operations plan are to minimize loss to ABC University, continue to serve its students and maintain administrative operations. This is accomplished through the development of plans and procedures to provide secondary options including alternate sites, personnel, resources, interoperable communication and vital records.
Strategic planning directs every movement in a business and is very essential to business performance (London 2002, pp.26-33). The strategic plan and operational plan are extracted from Best Buy Form 10K to better clarify the current situation and future direction of Best Buy.
[Alan - planning] Though just one part of the supply chain process, the sales and operation planning process for any industry is extremely important to its success. Planning for the future helps firms provide better customer service, reduces the costs of holding and transporting inventory, decrease the lead times for customers while maintaining a consistent customer lead time and helps the top management of the company have control over the business (Türkay). Overall, planning helps to provide the best value products for the customers and the best results for the
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 characteristically concentrate on operational and organizational goals such as when to obtain new technology, how to meet competitive challenges, and what staffing, tools, or facilities are needed to ensure organizational survival. The mission and value statements are significant in determining the quality of a strategic initiative. Forcing the organization to look toward the future creates proactive objectives in which both short-term and long-terms plans and goals are necessary in order to succeed.
Ans: The purpose of the operational plan is to implement the strategies that will help the organisation personnel pursuit their strategic plan and also to manage the day-to -day activities of the organisation. It also helps the organisation to have a clear picture of their task and responsibilities in line with the goals and objectives contained within the strategic plan.
Company-wide strategic planning is based on strategies that increase company growth, production development, and expansion. Companies more than often set long term plans which help them to maintain the work focus and achieve the goals they have
Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. Operational plans support tactical plans and are the tools for executing daily, weekly, and monthly activities. They include policies, procedures, methods, and rules. GE has essentially grown in size and benefits since 1980’s. GE centralized financial management and strategic planning control, and practiced strategic planning management.
Operations management strategies play an important role in any organization to achieve organizational goals. An organization uses these operations strategies to maintain and control all its operations...
Organization failures often result from the complexity of team tactical plans. Importantly, the strategic plans are inherent in the role of the top management. The managers must understand that effective strategic planning activity incorporates the entire organization 's performance and not just affecting one department performance. A good strategic planning process includes parameters for tracking the performance of the entire organizational. Measuring performance makes the plan satisfactory, achievable by the targeted beneficiary (Bryson, 2012).
Planning can be used to help the organization map out a way to efficiently achieve their goals. The beginning of the planning process should include analyzing of the current situation. From this information the company can determine the goals and start to outline the steps that need to be taken to ensure that the goal will be met. Other planning activities that should be completed are determining the company’s objectives and were they want to be in the future. This will help them to choose their business objectives and strategies. In addition, the company should look at the resources that they have available and determine if they are sufficient to achieve the organizations goals.
Once plans have been developed, an organization must address how management will be accomplishing be those plans. This involves operational plans that must flow from strategy; specify resource, time issues, and commitment of human resources. Operational plans at the lower - levels of the organization, have a shorter time horizon, and are narrower in scope (Bateman, Snell 2003 p.113). A good example of this is Wal-Mart's main strategic goal. It is to provide quality merchandise at an affordable low cost to consumers. Its operational goals focus on efficient logistics requiring technology and inventory management systems to help reduce costs so it can be passed on to the customer. Operational plans are derived from a tactical plan and are aimed at achieving one or more operational goals (Bateman, Snell 2003 p.113).
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.
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.