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Sustainability in a business context
Sustainability in the Business Context
Sustainability in the Business Context
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In the era globalization, the organization should consider about the business performance and also the strategy of planning in the business. Having a good business performance still cannot survive in the company for long time period, if the manager did not have a good strategy to maintain that business. This opinion supports by Wijetunge and Pushpakumari (2013), state that the low level of strategic planning is the poor performance of SME. So that, both of the business performance and strategy of planning having a relationship each other and it shows that the important in the organization or firm to compete to other and to survive in the market global.
Performance is defines as the achievement of the tasks assigned are measured with the preset
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The combination of both business performance and strategy of planning is essential to all business in the world to accomplish the organization goal and to survive in the market global. Many of researcher, state that the relationship of both business performance and strategic of planning are important to achieve the organization goal (Ongonge Julian, 2013). Besides that, having both performance and strategy in the business can give a lot of the benefit to the organization and the organization can become successful …show more content…
The importance of strategic plan is obvious in improving and maintaining the business performance, especially in financial performance. The financial performance is essential in the business, which is can gain a lot of profit to the business and can buy the asset for the business. So that, the best of the strategy are used in the organization, the better performance will get to achieve in the order to ensure the organization goal. So that, the organization should consider the strategy that will use in the organization before decide the best strategy for their
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.
The Strategic management is help to accomplish the goals and intention for organizations recourses and future plans by following the important elements, which are planning, controlling, analyzing by study both internal and external strengths and weaknesses.
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.
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 planning is defined by intestorwords.com as the process of determining a company’s long-term goals and then identifying the best approach for achieving those goals. But this definition is too broad and does not identify the true advantages of strategic planning for large to small businesses. Strategic planning provides the foundation for the policies, procedures, and strategies for obtaining and using resources to obtain the goals of the organization. Some believe that in today’s rapidly changing environment, strategic planning is becoming more difficult and therefore more obsolete because changes are occurring so fast that plans-even those set for just months into the future-may soon be obsolete. The fact is that with the fast changing environment it is even more important to have strategic planning in every business today.
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).
A successful business strategy will identify changes in the external trends in the market place. Plan out what the company’s future direction is. Set out the goals for the management team. It will identify a vision of where the company wants to be in the future. Keep all employees informed of the direction of the company.
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.
The success of an organisation’s performance can be impacted upon by a number of factors, including Strategic Management and Strategic thinking processes.
Strategic management is concerned with a set of decisions and actions intended to improve the long-run performance of an organization (Boddy, 2009). It draws from the company’s will to adapt and survive in varying external and internal environments. Strategic management incorporates rationalization, planning ahead, setting clear goals, designing logical structures and monitoring systems for efficiency. It helps to determine a model of investment of resources, time, effort and capital. Thus it is a plan to reduce uncertainty about the future and to choose viable and potential solutions for growth.
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.
...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.
In the highly competitive business environment and for an organization to be sustainable and prosperous in its business industry, an organization must engage in strategic planning which will help to place an organization’s direction in doing its business. It is a process of analyzing and developing to move an organization or destination from its current competitive position to a more desirable future competitive situation.
Strategic management has shown to enhance the company’s profits and market shares. Companies need to utilize strategic management in order to improve that their performance and organizations are set. Some of the benefits of strategic management are it brings new opportunities and development, the manager is more involved in their job role, the quality of the company is enhanced, implementing models that will bring the company growth and profits, it helps the manager to be organized in order for them to be successful, it brings certainty to the company, and provides management with a guide to what the company is needing to accomplish with their goals for the future. According to Nmadu (2007) he stated “strategic management has become more important to managers in recent years and defining the mission of their organization in specific terms have made it easier for managers to give their organization a sense of purpose” (Dauda, Akingbade, and Akinlabi, 2010, p.100). Strategic management can also have its disadvantages. A few disadvantages are time and effort that is put into the company, and discussing what is important for the company’s long-term goals. Another disadvantage is managers stay on the planning stage but forget to implement and take control of the plan. If strategic management is not enforced than this can cause effects on the companies market shares, and profitability. Enforcing a strategic plan will play a major role in the companies
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.