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Benefits and limitations of strategic planning
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Introduction/thesis
Changes within the internal and external environment is important for managers within organisations to pay close attention too, as these factors influence how managers conduct managerial plans. “Managerial planning is the process of assessing an organisation 's goals and creating a realistic, detailed plan of action for meeting those goals.” (“McQuerrey”, n.d, para 1.) The way in which organisations respond to changes within their environment is by creating and evaluating a strategic management plan. This essay will discuss that resistance to change and the failure to capitalize on the benefits of a strategic management plan result in managerial plans more likely redundant due to changes in the environment. However, an effective
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(Richardson, C 2014, p.247). The environment is dynamic, so it is difficult for managers within organisations to predict when change will occur. Changes in the environment can happen either before or after a managerial plan is established, and can have an influence in its validity. An effective strategic management plan allows organisations to adapt or restructure an already established plan in response to an environmental change. The most important factor of a strategic management plan is that an organisation must consider multiple scenarios to evaluate alternatives if change does occur before a managerial plan becomes established. (Schneider, n.d, p.2). If an organisation pays close attention to only one plan and its development, and does not recognise alternatives if it were influenced by change, this can result in a managerial plan becoming redundant and its failure to respond to change. Thus, a successful organisation should develop multiple scenarios of the plan as it allows managers to evaluate and recognise the potential alternatives if the plan were to be influenced by environmental change. For example, the managerial planning conducted before the development of Apple’s new iPhone 7 would have addressed that the product would not be applicable with plug in headphones as Apple introduced wireless headphones. Thus, the managers in charge of the development of the new product would of had to consider the alternatives if the plan to not have plug in headphones was to be impacted by environmental change. In March 11th 2016, Apple’s competitive rivals Samsung released its new product, the Galaxy S7 which came with the ability to use plug in headphones. Hence, Apple’s inclusion of an adapter to the new iPhone allows consumers to still use plug in headphones, as this was a response
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
Hughes, M 2006, 'Strategic change', in M Hughes (ed.), Change management: a critical perspective, Chartered Institute of Personnel and Development, London, pp. 52-63.
Along with the rapid development of economy and society, the companies have to own skills to adapt, cater, and transfer new knowledge, and try to modify their activities to reflect insights. Strategic management evolves
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.
Will management successfully establish a strategic plan and KPI’s? Many companies will get stuck in the implementation phase and not be able to get out of it and end up abandoning this method. In the end, most companies find it too complex. (Outcomes, 2012)
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.
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. Strategic management benefits organizations by providing personnel, capital, helps to set standards and most importantly activates people. For an organization to have a successful strategic management plan, the mangers must learn to think strategically and have the ability to evaluate their environment and develop new ideas. Steve Jobs one of the founding fathers of Apple Inc used strategic planning to his advantage by making Apple’s mission a simple one- bringing easy to use computers to the general market, revolutionizing the computer market.
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).
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.
Strategic management is dissimilar to change management because it has a poor or maybe strategic management may not have a plan that does not existent. Through change management perspective, they examine other drivers that influence the employee’s resistance to change. They support their employees though the process of change. Strategic management does things quite different from change management, strategic management is, and “the result is a deficient process that invariably fails to yield the expected results from effort”.( Menkhoff, & Wah, 2008) What change management could do is stop treating the resistance as a problem employee, and understand the many factor that that drive resistance and manage it and this will help the employee to change in management. Strategic management does not require evaluation or feedback mechanism and it also has limited the linkage between plans and the actions that will
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...
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
Organisation is the most important element in management. Any organization is located and operated in the environment. Every action of all organizations is possible only if it allows its realization. The internal environment is the source of its vitality. It involves the capacity needed for the functioning of the organization, but at the same time can be a source of problems and even her death of the organisation. The external environment is the source that supply organization resources. The organization is in constant exchange with the external environment consequently it provides itself with survival. The main objective of this work is to consider elements of the internal and external environment of the organization which are in a constant
In any organizations management would have to contend with any unavoidable changes that might take place. New machines, equipment, unstable business environment etc. can bring these changes. Successful implementation of the product therefore depends on the ability of the management to deal with the changes and resolve any emerging conflicts there from.