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List of importance of Strategic Planning
importance of strategic planning process
the importance of having a strategic plan as an organization
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Strategic plans prove to be a vital resource for the success of a lot of businesses. While a strategic plan is not required, research shows that most successful companies have a strategy plan in place and some means of testing the effectiveness of the plan along the way. As a leader within an organization you have an obligation to provide guidance and direction for the company. A strategy plan is defined as being "management 's action plan for running the business and conducting operations" (Thompson, A., Strickland, A.J. and Gamble, J., Crafting & Executing Strategy The Quest for Competitive Advantage: Concepts and Cases, 2009 Custom Edition, pg. 6). There are three important reasons for developing a strategy plan which include: recognition …show more content…
This is the platform to develop your "brand" for yourself. Once you have communicated to all internal stakeholders the plan of action it makes it easier to streamline and make processes and procedures more effective to meet the goal of the organization. As you get everyone in line and on the same page within the organization, you develop cohesiveness and efficiency. Efficiency is the direct result of a well executed strategy plan, which leads to more productivity within the organization. As things come together a good strategy plan ultimately will lead to name recognition for your company and a distinctive edge or advantage over the competition. Ideally, this is what you look for as a business. You want something that sets you apart from others competing within your market. A competitive advantage is important because it creates a loyal following of consumers, which leads to more revenue for the …show more content…
You want to make sure everyone within the company is customer-focused and willing to meet the needs of the consumers. The goal is to provide extraordinary customer service...ordinarily! When the customers feel that you have their best interest at heart they will stick with you until the end. It is also important to always be forward thinking and stay creative. You always want to be ahead of the competition and make your company stand out amongst the rest. Company 's should always search for the best talent, have great technology and products that consistently meet the needs of your customer base, which will give the company sustainability and longevity. Efficiency in your operational processes is key to keep operational costs at a minimum while creating more productivity. Efficiency and productivity lead to more profits, which give you the revenue to do the things you need to do to keep the business running. Extra money gives businesses the much needed income to invest in their human capital, provide a ROI for their investors and give back through philanthropic efforts in the
Efficiency will help in getting lower cost of competitive advantage. Staff efficiency can be the main aspect for competence.
To cater to customer needs. To keep in mind the complications that arises in different situations and handling it. Teamwork and proper service, internal strategy and proper communication.
Productivity is key in any organizational business performance. Higher productivity generally creates a higher chance for a business to perform. Lower employee productivity affects the business performance.
Strategic Implementation is needed for a company to successfully form and execute the company business strategy. Strategic Implementation helps the company thrive and bring in the necessary revenue to keep customers and bring in new customers. Strategic Implementation is a lot of hard work but very worth the effort to the company. Sometimes the hardest part of the process is coming up with an entire plan that is geared towards helping the company in all operations of the business. Sometimes it is not always the brainstorming of strategic implementation that is hard to brainstorm the planning and activities to get the business to grow. All members of management must look at the plan as it the primary concern of the business development process.
Profitability-Achieve a fair and equitable return on investment by encouraging productivity within the company. Ensure a steady growth by strengthening brand position in the industry.
Strive to earn customers’ long-term loyalty by working to deliver more than promised, being honest and fair to provide exceptional personalized service that creates a pleasing business experience.
When reading the book The Goal written by Eliyahu Goldratt, there were many lessons that I learned in order to have a clear and concise understanding of a positive level of productivity in a company. To have a positive level of productivity there are may components that are taken into consideration. Understanding what it actually means to be productive and how to increase the level of productivity by knowing the actual goal of the company that is trying to be reached and the components that go into the process of being productive. There are many factors that contribute to the level of productivity and being able to identify these factors is the key ingredient to having a successful level of productivity.
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.
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
So, performance measures should be a crucial and integral component of effective management, since it works as a navigator to ensure that the organization is performing according to its planned objectives, and the actual performance is according to the planned one, this is generally known as a “strategic planning”.
EFFICIENCY: This simply means making the most out of available resources. Thus in public administration it could be the provision ...
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
For operations management to be successful, the function of the operation must be first be defined. The degree to which this is achieved is a measure of effectiveness, the key objective of operations management. Efficiency is less important since there is no point in which carrying out an irrelevant, or worse damaging, activity effectively. Effectiveness means achieving objectives, efficiency means consuming minimum resources. While both are desirable, the former is of overriding importance.
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.
It is important for organisations to achieve their goals, as this can assist them to reach a competitive advantage, which is a highly attractive position for a firm to be in.