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Importance of strategic management for an organisation to maintain its competitive advantage
Benefits and limitations of strategic planning
Drivers for strategic implementation
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Recommended: Importance of strategic management for an organisation to maintain its competitive advantage
The concepts strategic management is critical for organization success as they asset in formulating the foundation of company core businesses.Strategic planning is essential for organizational performance to accomplish organization goal and objective. In this essay, the organizational context of KKF evaluated. This document focuses on how recommended strategic plan can be implemented for King Khalid Foundation (FFK). This paper will provide specific strategic procedures to be followed by King Khalid Foundation (FFK).
King Khalid Foundation
King Khalid Foundation, a charitable organization that was established in Saudi Arabia fifteen years ago by the family of King Khalid family (King Khalid Foundation, 2013). This foundation is an organization
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In this undertaking, the foundation targets at developing knowledge related to managing and governing the nonprofit organization. KKFfocused on providing training on management, proposal writing, fundraising strategies, and strategic planning. KKF kept a database of the complete count of the Kingdom`s nonprofit organizations. This database accessible through KKF’s website. The group fights for higher revenues but does not intend to distribute this income to the shareholders; instead, it further used to achieve the mission and vision of KKF (Al-Fawzan, 2011).
Principles of a Well-Designed Strategy Process
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).
The planning has to decide on strategies with higher chances of attaining satisfactory performance with a small chance of organizational failure. The executives and the planning team must determine upon selecting the suitable options for the
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The role of the directorate is continuously changing in the modern organizations. Change emphases organizations and affect what organization does and how to achieve organization objectives. Adopting change is a hard concept to manage; organizations will always resist for various reasons, either internal resistance or external resistance. KKF management must deal with this change by updating their skills to address the changes that the above strategies might bring (Bryson,
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
Objective 3: To increase the number of competitors by 70% by the end of the year.To evaluate this objective, we will plan ahead in addressing the needs of the organization, with providing a structured agenda of things to achieve and collecting data from the competitors. To measure the planning skills, we will use organization skills, use sufficient data, and establish goals to achieve. The data collected will come from competition numbers and facts pertaining to improving planning
The Foundation is very different with how it focuses on science, technology, and economic institutions. They believe that the people who work in these fields are chief drivers of the nation’s Health and Prosperity Company, and are scholars or practitioners. The Foundation has outstanding individuals and teams and has different plans for original projects led by them. The Alfred P. Sloan Foundation has a strong benefit to society and has many projects that they believe will help them do so, but the government is not available for their private funding sector.
Evaluation and review should be an ongoing process of learning, embedding a process of continual improvement and development. The key to evaluating is knowing what we are measuring. We cannot monitor and evaluate the team’s progress towards agreed objectives without clear advance planning of what we want to do and how it will be achieve. Effective strategic and operational planning, incorporating clear measurable objectives, is therefore an important
In their pursuit of effectiveness, all organizations must engage in the process of determining what goals and objectives they wish to achieve. Establishing what is important to your organization allows you to invest your resources wisely while avoiding squandering them on trivial matters. Though determining what is important is essential, understanding how you will go about accomplishing those matters is of equal consequence. Without clear strategies to accomplish organizational objectives, team members will work aimlessly. An objective without a strategy is much like taking a road trip with only a destination in mind: the process can be aggravated with wrong turns, wasted gas, lost time, and arguments between travel companions.
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
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.
The success of any organization just as the Tesla Motor largely depends on the planning of the activities by the management team in the company. A good performance is always attributed to the planning strategy that a certain company has. The following are therefore four factors that affect the planning and performance of the company.
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.
The management will be residing in the country and can relate with better response of needs for the company in that region. A tactical plan created will specify how the company will use resources, budgets and to employees to accomplish the specific goals towards the Groupon’s strategic plans and objectives. A technique used to carry out the technique is “Management by objective (MBO) this is a four-step process in which managers and their employees: 1. Discuss possible goals 2. Collectively select goals that are challenging, attainable, and consistent with the company’s overall goals.
The lack of success at Omega, Inc. rested in the hands of an incompetent sales staff who were not informed of the company’s mission statement and goals. The staff received limited training on the jobs they were to perform. Omega was faced with the challenge of getting the employees to achieve their sales quotas. According to (Aguinis, 2007), “There are two important prerequisites required before a performance management system is implemented: knowledge of the organization’s mission and strategic goals and knowledge of the job in question.” The benefit of superior knowledge of the organization combined with clear and agreed upon mission and strategic goals of their unit would afford employees the opportunity to make contributions that will have a positive impact on the organization as a whole. In addition, one must possess the knowledge of the job in question to execute the tasks necessary to be done and how they should be done. This knowledge is obtained through a job analysis. Omega failed to implement strategic planning throughout all the franchises. According to Aguinis (2007), “Strategic planning allows an organizati...
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.
As Schermerhorn states in Management planning, organizing, leading, and controlling are the tools needed by managers to accomplish performance goals. It is crucial that managers be able to recognize and act upon problems or opportunities as they arise. Planning is perhaps the cornerstone of the four processes. All good processes were at some point given great detail so as to anticipate possible problems and solutions to those problems. When the Honda Motor Company decided it needed to refine its inventory they didn't just jump at the first idea that was proposed; they first set their objectives and discussed ways to meet those objectives. After giving careful consideration to processes and the streamlining of those processes human error rose as the top need for change. Sounds simple you might respond; in reality it is much more complicated.
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.
...c management or planning presents a structure or agenda for dealing with issues and solving problems, therefore, understanding potential risks or pitfalls of strategic management and being prepared to deal with them is critical and vital to success. Strategic management not only permits top leaders and managers to be more proactive than reactive in building or developing their own potential or outlook in an organization, and it also lets them to make the first move and influence activities, consequently, executives and management can control or in charge of the company’s own future, and achieve its main goals and objectives. Overall, increasing cost-effectiveness and efficiency, improving the value for its stakeholders, and advancing customer services and management excellence are the key objectives of strategic management and decision making in an organization.