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Theories of importance of strategic planning
Theories of importance of strategic planning
Strengths and weaknesses of strategic planning
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There are a number of factors that the Board of Directors will have to consider while developing the strategic plan; one of the important factors is to investigate how the organizational structure of Whole Food market affects the strategic planning in the organization. In this case, it will help the directors to have an idea of how their input in the strategy will be of general benefit to the entire organization. In any strategic plan, the organizational structure plays a critical role since it determines how successful a strategic might be. The other factor that they should consider is the establishment of how the leadership of Whole Food Market affects the strategic planning of the entire organization. In many cases, a strategic …show more content…
Therefore, in this case, the board of directors will have to consider the impact that will be brought forward by their leadership on their strategic plan (Bryson, 1995). Another factor to consider is for the directors to investigate if the organization culture can influence the strategic planning in their organization. In this case, the culture that exists in an organization plays a critical role while developing a plan because it determines if the strategic plan will successful or not. The other factor that would affect the strategic plan that is about to be unveiled is that the directors would investigate how the human resource department will influence the strategic plan in the organization. The human resource is an essential factor because it is the one in charge of the entire employees in the organization. Therefore, it influences many things, and one of them is the strategic plan and thus directors should ensure that they establish how it will affect the …show more content…
Under this case, while undertaking its business, Whole Food Market is always affected by these internal and external factors and thus before coming up with the strategic plan for the next five years, then it is essential to assess and analyze them so that the plan can provide ways on how to evade some of the challenges that will hinder them during its implementation. Strategy formulation is another factor where the high-level strategy is usually developed, while at the same time, the basic organization level strategic plan is normally documented. Therefore, it will be necessary for the organization to formulate the strategy so that the end product will be the best for the next five years. While developing the strategy, the organization will have to consider on how the strategy will be executed. This will involve the high-level plan being translated into a more operational and executable planning together with the action items (Kiptoo & Mwirigi, 2014). Therefore, it means that the organization will be ready to implement the strategy fully once it is in place. The other factor would be evaluation of the sustainment phase; under this refinement and the evaluation of the performance of the employees, the culture, data
Customer loyalty is another competitive advantage. Trader Joe’s doesn’t provide membership card to the customer, however customer still would like to choose Trader Joe’s just because of this
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.
As such, they found it important to centralize the staffing initiative in order to maintain the unique corporate culture created in the beginning. Every one of these strategies would be focused on centralizing staffing, bringing in the best possible employees, and retaining each on a high level. Human Resource and Staffing Strategy When developing a strong and scalable human resource and staffing strategy, taking many factors into account is of the utmost importance. As reported by Olian and Rynes (1984) “the possibility that organizational characteristics like structure, size, and strategy may influence staffing” (p. 170).
The mission, vision, and values contribute to an organization’s ability to reach its desired end state by clearly stating the fundamental principals that will guide the firm’s actions and defines a clear set of values that encourages staff to work towards accomplishing the desired end state. The Alameda County Community Food Bank was chosen for completing a strategic plan. This paper will discuss the strategic plan for the Alameda Community Food Bank, components of the strategic management process that will be analyzed, and how the outcomes will affect the leadership and culture of the organization.
Strategic planning is crucial for the success of all business endeavors. Analyzing currents trends in technology, consumer markets, competition, and the workforce can play a pivotal part in whether or not the organization can survive. Overtime, strategic planning strategies must be modified in order to compensate for changes in the industry. Goals and strategic planning often necessitate change to ensure that the organization is performing at peak level, while offering the most beneficial and quality services to consumers.
Strategic planning development is a process that enables a company to achieve its goals and objectives within the stipulated time frame (Harrison & John, 2014).The Whole Foods Company should involve all the managers of the various functional departments of the organization, in the development of a strategic plan. For the strategic plan to successful, the company needs to consider it 's:-
General Foods (GF) is in the process of evaluating Super as a new profit-increasing project for its business. Payback and Return on Funds Employed (ROFE) are the decision rules used currently by GF for project decisions. While these rules are helpful, they are flawed and do not take into account the time value of money when evaluating cash flows. Net present value is a more suited tool to evaluate projects because it takes into account discounting of future cash flows, evaluates liquidity through discount, selects the scenario that maximizes shareholder wealth, and considers all relevant incremental cash flows. Certain cash flows and costs for Super were either included or not in the financial worksheets presented to management. Flaws
..., John E., Strickland, A.J. Thompson, Arthur “Whole Foods Market In 2006: Mission, Core Values, and Strategy”, Crafting & Executing Strategy 15th Ed., McGraw-Hill Irwin, 2007
Analyze effects of the democratic approach to store operation and hiring new associates on store performance. (Ch. 13)
To most consumers Whole Foods is known as a chain grocery store specializing in organic and natural foods. Some may go as far as say the name is synonymous with quality. This comparison is the result of Whole Foods’ marketing their brand successfully to consumers demanding their specialized foods. As with any organization, Whole Foods may consider evaluating their strategic objectives and decide if necessary course corrections are needed to reach their objectives and goals. Through a fundamental and technical analysis, I will discuss Whole Foods’ mission, vision, and goals, their competitive environment, and some factors within their strength, weakness, opportunity, and threat analysis. With such data and information I will recommend, if needed, and strategic changes in order to sustain a competitive advantage.
In the 1980’s, the birth of a new concept called ‘Human Resource Management’ was born. This trend comes after an intense period of Taylorisation, Fordism and now, McDonaldisation. HRM came to counter balance these trends and to consider the concept of the Man as a Man and not as a machine. For the last several decades, the interests of companies in "strategic management" have increased in a noteworthy way. This interest in strategic management has resulted in various organizational functions becoming more concerned with their role in the strategic management process. The Human Resource Management (HRM) field has sought to become integrated into the strategic management process through the development of a new discipline referred to as Strategic Resource Management (SHRM). In current literature, the difference between SHRM and HRM is often unclear because of the interconnections linking SHRM to HRM. However, the concepts are slightly different. Thus, we can ask, what is strategic human resource management? What are the main theories and how do they work? What do they take into account and how are they integrated? What are the links between SHRM and organization strategy? In order to answer to these questions, we will precisely define strategic human resource management, followed by a look at the different approaches built by theorists, and finally, we will see the limits between the models and their applications depending on the company’s environment. Discussion Strategic Human Resource Management: definition Strategic human resource management involves the military word ‘strategy’ which is defined by Child in 1972 as "a set of fundamental or critical choices about the ends and means of a business". To be simpler, a strategy is "a statement of what the organization wants to become, where it wants to go and, broadly, how it means to get there." Strategy involves three major key factors: competitive advantages (Porter, 1985; Barney, 1991), distinctive capabilities (Kay, 1999) and the strategic fit (Hofer & Schendel 1986). Strategies must be developed with a relevant purpose to sustain the organizational goals and aims. SHRM is one of the components of the organizational strategies used to sustain the business long-term. SHRM defined as: “all those activities affecting the behaviour of individuals in their efforts to formulate and implement the strategic needs of the business. (Schuler, 1992)” or as “the pattern of planned human resource deployments and activities intended to enable the firm to achieve its goals.
There were some factors and issues indicated in WFM’s SWOT. The SWOT identifies the strengths, weaknesses, opportunities, and threats. By identifying where the weakness lies during the OD, WFM may turn this weakness within the organization into a strength or opportunity. It is not a surprise that WFM is experiencing a growing threat from the supermarket chains that are increasing their shelf space and products offering more organic and natural foods. This increased competition exposes the threat of new entrants into this organic and natural foods market. As one of Porter’s Five Forces, WFM needs to identify, or pursuing a competitive advantage over its competitors. In an OD’s, an analyst can identify certain competitive moves such as Improving product differentiation - improving features, implementing innovat...
The purpose of this report is to evaluate Nestle Company industry based on the case study and comprehend how the company develops strategic intent for their business organizations following the strategic factors and approaches. I will analyze the strategic management process as firm used to achieve strategic competitiveness and earn above-average returns. I will critically examine the strategy formulation that includes business-level strategy and corporate-level strategy. It also aims to identify market place opportunities and threats in the external environment and to decide how to use their resources, capabilities and core competencies in the firm’s internal environment to pursue opportunities and overcome threats.
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).
Strategic implementation is a critical factor when making decisions regarding issues that affect the vision, mission, or objectives of an organization. Strategies are often implemented in accordance to the culture of the organization, the nature of control systems, the stakeholders, and the nature of the organizational design. In order to achieve success in the implementation of strategies, the structure of these factors must work in coordination with one another. For instance, the strategic vision of CPK lies in the creation of a globally recognized brand name and therefore, all of the goals and objectives of CPK must be directed in realizing that the company achieves this objective (California Pizza Kitchen 2011). Furthermore, the vision statement is inclusive in itself in that it communicates the message in a directional, flexible, and focused manner.