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Essay Question: You have been talking to Jack, a close friend of yours. Jack has a small business in the travel industry and has five people in his employ. His business has grown steadily over the last ten years since he started it. You have noticed that Jack does not seem to be very involved in strategic planning as far as his company is concerned. In fact, he appears to think that strategic planning is impossible in today's rapidly changing and turbulent business environment. You have decided to talk to him about the importance of strategic planning when he made the following statement."Strategic planning is really something that is best left to the big players. Small companies like mine just do not have the expertise, the time or the resources to engage in strategic planning. We just go out there and make things happen. Sometimes we do that by being innovative; sometimes we just copy other people. But at the end of it all, it all boils down to being able to price your product or service lower than others. Strategic planning - well, that's too complicated in our current situation and there are so many factors to think about that it would really be a fruitless exercise. Anyway, how does one keep up with or even get all that new information?"
You feel that strategic planning is important. That being the case, how would you advise Jack? What would you tell him about why it is important for companies, big or small, to engage in strategic planning and what he needs to know about strategic planning? How would you address Jack's concern with regards keeping up with information?
The importance of a small business strategic planning crosses all industries, and it is important for every small business owner to apply some sort of strategic planning.Â The results of this small business strategic planning will become noticeable when the business owner must ask for financing, seeking new investors, planning for tax purposes and in many other ways as well. It is better for the newly minted business owners to seek the advice of a mentor in order to achieve the best results. Having the advice of a business owner who has already been successful can give the new business owner a real competitive advantage, and fortunately there are a number of business organizations whose goal it is to match new business owners with qualified mentors. This essay will be about how to advise Jack about strategic planning. the importance of strategic planning for small or big companies. what does Jack needs to know about strategic planning. Finely some tips about how to keep up with the information.
Small business owners mistakenly believe that the size of their business go against the need for strategic planning but the opposite is actually true. Its basic size is actually what makes strategic planning more important, because it can be make a small business to steadily evolve into a huge and successful multinational corporation.
A strategic plan is plans that apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment (Robbins, Bergman, Stagg, & Coulter, 2009). A strategic plan can be the foundation of the company's operational success over a short or long period of time. If an action pushed along without a sense of direction, it may end up going nowhere. That is why you need to write a strategic plan to guide your organization through good and bad times. Without a strategy your business has no sense of direction. Strategy tells where you want to go. It is just like cooking without a recipe, It can be done but the end results may be different of what you desire. CompaniesÂ that create and execute sound strategic plans are generally more successful than those that do not.
Planning is one of the five important functions of management, but it's possibly the most important of all, because it's the first function that any manager or business owners should focus on. Planning sets the goals, mission-vision, and direction for the company. Without it, the other functions may be impossible to achieve. It is important for businesses big or small to engage in strategic plans. No matter what type of business you entering and how big your company is, strategic plan will keep you on course to becoming a solid competitor. Nowadays the external environment affects any business. As well as any unhappy changes will lead to a disaster even with a clear plan. That's why a flexible plan is important, being flexible will help you adjust smoothly in today's dynamic business environment. Planning is a management function that involves defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities (Robbins, Bergman, Stagg, & Coulter, 2009). Managers need to state their overall plan, specify tasks to each department, employees and business units. When each employee has a clear idea of his/her job they will work better and focus better in their job. Which will lead in a satisfied outcome for the company's overall profit. Long-term plan is a plan with more than three years time frame and short-term plan is a plan that cover every year business practice.
Usually there is a three step must be considered when undertaken strategic plan. Situation, which is evaluating the current problem that the company is facing. The company should find where it is standing in the moment, and whether the business has the things required to be successful. Target, after the evaluation you need to identify and define the goals and objectives. Goals: Desired outcomes for individuals, groups and entire organisations(Robbins, Bergman, Stagg, & Coulter, 2009). The manger should have a clear vision of where he or she would like the business be three-five years from now. You can either decide to have a single long-term goal or break it down into a set of short-term goals that need to be achieved after specific intervals, and which will help you in the long term. Path after defining your goals, you should have a clear path that will successfully direct you towards your goal. When making a decision on this, you need to take different promising outcomes into consideration that may have the ability to slow down your operations. While it is not always possible to predict all the possibilities right at the start. It will absolutely help if you have at least some ideas of the situations that might come up, so that you are not taken by surprise. You should also have emergency plans in place, so that if certain things do not turn out the way you had planned, your progress is not hampered by it.
Keeping up with the information is much easier nowadays. The fast communication and the availability of the information is helpful to understand what is going on around you. Reading business magazines, watching business news, visiting business websites all of this can be done in different ways. You can assign this task to two or more employees as an extra work with bonus salary or reward. Each one of them can check regularly one or two things, for example one will check the internet while the other employee will keep reading or watching the news, and every two to three days hold a meeting to summaries what has everyone observed.
Strategic planning is plans that apply to the entire organization, establish the organization's overall goals, and seek to position the organization in terms of its environment. Any action taken without a sense of direction will end up nowhere. Companies that create sound strategic plans are generally more successful. Strategic plan will keep you on course in gaining comparative advantage. With a flexible plan you can adjust smoothly in today's dynamic environment. Planning is a management function that involves defining goals, establishing strategies for achieving those goals and developing plans to integrate and coordinate activities. Specifying tasks to each employee will create a clear path of the company. Three steps must be taking into account. Situation, Target and Path. You can keep up with the information by assigning tasks to your employees and gather what they observed or keep a track on the business news.