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Importance of strategic planning process
Importance of strategic planning process
Goals and objectives of an organization
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Introduction
The strategic management of an organisation is one of the key responsibilities of managers in any organisation and is critical in ensuring its employees understand the purpose of the organisation, the specific objectives set to achieve that purpose and the values that members of the organisation adhere to. (Jones & Hill, 2010)
In the context of police and emergency services, a strategic plan plays a key role in ensuring the organisation can deliver on its mandate of meeting the needs and expectations of the community it serves and its partner stakeholders.
The theory of strategic management is important to understand and implement as part of an organisations strategic planning process.
A strategic plan underpins an organisations
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Managers are the linchpins in the strategy-making process and must take on responsibility for formulating strategies to attain a competitive advantage and for putting those strategies into effect. They must lead the strategy-making process.
Essentially the components of the strategic planning process include an initial assessment to identify an organisations vision and mission statements, a situational analysis followed by strategy formulation, implementation and monitoring. (Ovidijus, 2013)
An important part of the strategic planning process is decision making. People at all levels in organisations are required to make decisions on a daily basis. Many of these are not strategic decisions, however all decisions are important as the wrong decision especially in a policing and emergency services context can have catastrophic consequences both personally, for the organisation and for public safety. Bazerman (2013), suggests that for the formulation of rational decisions the following six (6) steps should be taken ether implicitly or explicitly:
1. Define the
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Being successful in strategic planning as a manger depends on taking responsibility for the decision-making process and leading your organisation and employees through the decision-making process.
Police and emergency services are not in business to make profits; however, they are expected to use their resources efficiently and operate effectively to improve service delivery whilst not exceeding its budget. These organisations are expected set goals to measure their performance. Managers of these organisations need to map out strategies to attain these goals. The six (6) step decision making process assists Manager’s in the successfully navigating through the strategic planning process. (Jones & Hill, 2010)
Organisations with sound strategies tend to succeed over those that may do all the right things at the working level but have no method of unifying those ‘right things’ into a mutually supporting operation. (Schafer, Buerger & Myers, 2012)
Jones & Hill (2010), provides a five-step strategic planning process:
1. Select the mission and major corporate goals of the
Generally, strategic management is a set of managerial decisions and actions that determines the long-term performance of a company, involving both internal and external environmental scanning, strategy formulation, strategy implementation, and evaluation and control. According to the study of strategic management, the corporation should concentrate on monitoring and appraising outside opportunities and threats based on an organization’s strengths and weaknesses (Thomas Wheelen and David Hunger, 2012).
As per Henry Mintzberg, former president of the Strategic Management Society, “strategy cannot be planned because planning is about analysis and strategy is about synthesis. Strategic planning involves a structure or framework, a set of procedures both formal and informal, and of course content. Beyond these basic elements, the underlying assumptions about strategic planning are that the future can be anticipated, forecasted, managed or even controlled, and that the best way to do so is to have a formal and integrated plan about it in place. The process of planning itself may turn out to be more important than the results, and that process requires both analysis and synthesis. Planning simply introduces a formal “discipline” for conducting long-term thinking about an institution, and for recognizing opportunities in and for minimizing risks from the external and internal environments.
Strategic planning requires a few steps. The steps would be to appoint a strategic planning committee, interview key stakeholders, conduct an analysis that measures strength, weakness, opportunities, and threats, develop a plan, and communicate the plan
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
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.
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).
Dess, G., Lumpkin, T., & Eisner, A. (2010). Strategic management : creating competitive advantages. McGraw-Hill Irwin.
Strategic Planning is looking at where you are now, knowing where you want to be in the future and planning the steps to get you there.
The strategic management process implies sequential and interrelated activities, situation analysis (scanning and evaluating the current organizational content and internal environments), strategy formulation (developing and then choosing appropriate strategies), strategy implementation (putting strategies into action), and strategy evaluation (evaluating the implementation and outcome of strategies), leading to some outcome. These interrelated activities result in a set of strategies the organization uses in doing business. To manage strategically means to analyze the current situation, develop appropriate strategies, putting those strategies into action and then evaluating and changing those strategies as needed. The three main types of
Strategic planning is the continuous and systematic process of guiding members of an organization to make decisions about its future, develop the necessary procedures and operations to achieve that future, and determine how success will be achieved.
Planning is the process of setting performance objectives and determining what actions should be taken to accomplish them. (Schermerhorn et al., 2011, p. 20). A strategic plan is a major factor in declaring all tasks are completed to standards, thus everyone works together to achieve satisfying results.
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
The four steps that lead managers and the firm through the strategic planning process are first defining the company’s mission, then setting objectives and goals, next designing a business portfolio and lastly developing functional plans. The first step involves focusing on consumers’ needs and wants. Setting forth a market oriented mission that organizations want to reach based on consumers of the environment. After finding the mission, organizations then proceed to put together supportive objectives for every level of management to help achieve its mission. Next the company has to design a business portfolio evaluating all of its current business and future business by coming up with
What I benefit from this course strategy management class is knowing. The strategic management is consisting of the analysis, decisions, and actions an organization undertakes to create and sustain competitive advantages. strategic management analyses. concern with overall objectives, involves multiple stakeholders, incorporates short and long term perspectives, recognizes tradeoffs between effectiveness and efficiency. The strategic management analysis, formulation, and implementation the challenge managers face of both aligning resources to take advantage of existing product markets as well as proactively exploring new opportunities.
Strategic management is the “identification of one or more sustainable competitive advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them” (Business Dictionary, 2016). In order for industries and organizations to thrive, they must have strategies in place and strategic management processes to stay competitive, profitable, attractive to stakeholders, and to sustain advantages that set them apart from other competitors (Barney & Hesterly, 2015). The strategic management process involves a set of procedures that lead to choosing a strategy that will eventually lead to competitive advantage (Barney & Hesterly, 2015). The six steps of the strategic management process involves defining