Strategic planning is the organizational process of laying out the strategy, locating resources towards the implementation of these strategies for achievement. Strategic planning deals with the matter relating to the whole organization instead of a section or a unit. When one is laying out these plans there are questions they are supposed to ask in that process such as; what do you do? For whom do you, do it? How do you excel in doing it? The first and third questions are those that motivate an acquisition. Acquisitions are thus strategic choices. Operational planning is the linking of the decisive goal to goals and objectives to tactical goals and objectives. It describes milestones, conditions for success and explains how, or what portion …show more content…
In this respect, a business organization is mostly divided into business units according to its different products to develop and follow a specific strategy. They are referred to as strategic business units (SBUs). They are based on three characteristics such as; is a single business (product), or a collection of related businesses (products), that can be planned separately from the rest of the company, has its own defined market (with customers, competitors, etc.) and has a manager responsible for strategic planning and profit performance.
Once a business organization has determined its SBUs, management must decide how the budget needs to be allocated. Each SBU must, therefore, be assessed according to its value based on potential growth opportunities.
Business organizational changes exist if there is a proof of organizations' presence. A lot of people have shown very interest in organizational changes, as many firms have resorted to remodeling their strategies, structures, and processes to remain competitive in a demanding business environment characterized by rapid technological change, globalization, and deregulation. There was an exemplification of the language that people currently use considering the types as follows: Revolutionary versus Evolutionary; Discontinuous versus Continuous; Episodic versus Continuous flow; Transformational versus Transactional; Strategic versus Operational; Total system versus Local option (Burke, 2008). Each of the different types will require different technique or tool to take care of
Background Information In implementing a strategic plan for Coastal Medical Center, our consulting team has conducted many analyses and formed numerous strategies in order for Coastal Medical Center to be successful. Such assessments include an internal analysis, external analysis, gap analysis, and SWOT analysis. In conducting these analyses, our consulting team was able to better understand the internal environment, external environment, where the organization currently stands in terms of performance, and the major strengths, weaknesses, opportunities and threats that oppose the Coastal Medical Center. From our inquiry, we will be able to establish a strategic plan that best fits the organization’s needs.
After analyzing the Coastal Medical Center, it is apparent that the employees and staff have no conception of the mission, vision, and values of this health care facility. In addition to this lack of structure, CMC has many projects in the midst of production that lack support of a common goal, employees are unsatisfied with their jobs, the two boards lack ability to agree on strategic decisions for the organization,, and the medical center has a dismal reputation when it comes to quality care.
Porter’s generic strategy typology and the Miles and Snow strategy typology are both examples of generic strategic models that a decision maker may find useful (Parnell, 2014). Both generic strategy frameworks explain generic business strategies by utilizing four different strategy types. A few of the strategies may share some common traits, however the frameworks are different in the approach they take to view and describe strategies (Parnell, 2014).
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.
New businesses will take longer to thrive with the United States falling economy. The faltering job market and the deepening slump in housing threaten to hurt consumer spending. Consumers are becoming more conscious of their spending and therefore using cash to pay for smaller necessary purchases. The cost of entertainment and other presumed luxuries may be pushed to the background by most families, when having to choose whether to pay for a bill or treat the family out. Thriving businesses will understand the need to provide a service or product at affordable prices.
Strategic Plans are used by top level management to set objectives, directions, and priorities, it is used to get everyone on the same page, and is a checklist of things that need to be done, to achieve the objectives. It is a guide that the whole organization needs to adhere to. Put things in the plan that you will be able to get done or by delegating to other employees. Upper management is responsible of the strategic plan, since they have an overall idea of the company,they set long term goals usually 5-10 years or longer. TACTICAL PLAN.
Each and every organization should have a strategic plan in place. It does not matter whether the organization is big or small. The importance of the strategic plan may vary from the different goals the organization has in place. The staff members should understand each department or division has their own goals to accomplish. Some goals may be long term and others are short term.
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
Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.
...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.
Tactical plans have shorter time frames and narrower scopes than strategic plans. Tactical planning provides the specific ideas for implementing the strategic plan. Operational plans support tactical plans and are the tools for executing daily, weekly, and monthly activities. They include policies, procedures, methods, and rules. GE has essentially grown in size and benefits since 1980’s. GE centralized financial management and strategic planning control, and practiced strategic planning management.
Strategic planning implies establishing in advance what an individual or organization wants to achieve within a specified timeframe and deriving ways on how to achieve that. A strategic plan is basically a course of action that is used to attain desired results. It means anticipating the future and having measures on how to grow into the future. Technology is a macroeconomic factor that is rapidly growing and changing. Technology has had positive effects all over across the globe to business organization and to individuals.
Strategic planning is an organizational process in which it looks towards developing and sustaining success or balance in its ever changing environment.
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.
Oppenheim (2006) defines Strategic Planning as the methodical process by which an organization anticipates and plans for its future by undertaking an examination of the organization and its environment by those who have a stake in its future success.