Importance Of Strategic Management Business Essay

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Just put, strategic planning determine where an organization is available more than the next year or further and how its departing to acquire there. Usually, the procedure is organization-wide or paying attention on a major purpose such as a separation, section or other main role. (The metaphors on this page suppose that strategic planning is paying attention on the organization.)

How to Get a Feel for Strategic Planning?

Planning usually contain a number of main tricks or steps in the development. Dissimilar people frequently have unusual names for these main activities. They force even carry out them in a different categorize. Strategic planning frequently includes use of more than a few key terms. Different citizens might be use apply different definition for these conditions as well.

Three different organizations:

Now I will discuss the three most popular organization management strategies.





A business's strategy is the model of decisions and actions that are taken by the business to achieve its goals. A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives. Running a business involves preparation the current as well as future actions. Hence, in order to achieve the business objectives, all business organizations agree with different strategies. Similarly, Cadbury has adopted many strategies which help achieve the targets set by the main office to the local store opened. Changes are the external as well as internal environment has led Cadbury rethink their past strategies and has therefore designed new strategies after noticing the changes in the surroundings.



ASDA is the second largest UK retailers after Tesco. The main theme of ASDA is providing that what customers wants, and strategic management. Now, business going very good in all area and communicate in business which they operate. But the customers need is an important part of business, especially in highly market such as supermarket retailing.

ASDA give a very good Image in field of retailer supermarket. ASDA Finance is owned subsidiary of ASDA store chain, and has operate since 2000, and ASDA is Wal Mart family of companies.


ASDA shows clear statement about the mission and values of business. The mission is sets out long term aims and is to be providing best values and retailer in business. The purpose is stated as providing goods and services for everyone. Its values show the company believes in respect for individual, excellence and customer services.


ASDA has both internal and external stakeholders.

INTERNAL STAKEHOLDERS: Internal stakeholders include Managers and Colleagues.

EXTERNAL STAKEHOLDERS: External stakeholders include customers and shareholders.

Stakeholders may want different things.

Customers want good quality products are also low prices.

Customers also want to see that ASDA is performed positive attitude in business.

Shareholders believe in community and want good return in their investment.


The program of ASDA is running seven years and in these years they only focus the people, health, education, community and big events. For example, ASDA provides healthy community, blood donor vans and also raised money for Breast cancer care. This helps the colleagues to contribute community.


ASDA has many employees; it's around about 150,000 in which (90,000 worked as part-time and 60,000 full-time). ASDA offers 10% of discount on most items to their employees.

In December 2005, the discount is provided doubled. ASDA also provides 20% discounted to its staff but excluding alcoholic drinks. However during double discount day all digitals and electrical items are not included. While reinstatement of discount was intend to promote publicity stunts which improved the relationship between employees and management.


ASDA also provide mobile services to its customers. This service was launched in April 2007.


ASDA also launched online retailer services, it`s includes entertainment, contact lenses, furniture, gifts, mobile phones etc and more items are launched every year.

In May 2004, it announced major expansions of services which would increase coverage of 30% of UK population to 35%.

In January 2007, ASDA launched to compete with Tesco`s highly successful Tesco direct.


ASDA sponsored English football team in 1990s.

ASDA currently sponsor Rugby club.

ASDA also sponsored Kiwi cricket for kids.


ASDA is the second largest UK retailers after Tesco. The main theme of ASDA is providing that what customers wants, and strategic management. ASDA give a very good Image in field of retailer supermarket. The mission is sets out long term aims and is to be providing best values and retailer in business. The purpose is stated as providing goods and services for everyone. ASDA also sponsored to different teams like Rugby, Cricket.


Strategic management is the procedure of specifying that an organization's objectives, enveloping policies and plans to attain these objectives, and allocating possessions so as to implement the plans. It is the uppermost level of managerial activity, regularly performed by the company's Chief Executive Officer (CEO) and executive team.

Importance of Strategic Management:

To the form the Future of business

Successful strategic idea

Mangers and employer are modern and creative

It's decentralized the Management

Its helps to boost up the efficiency

To Makes regulation

To make manage

To makes onward and thinking

International Strategic Management:

Questions Faced by Strategic Planners:

What products and/or services does the firm intend to sell?

Where and how will to make those products or services?

Where and how will it sell them?

Where and how will it acquire the necessary resources?

How does it expect to outperform its competitors?

Strategic Quality Control:

Pepsi Company believes that, consumers are the life of their industry. They like to

Attach with the future client through given that quality products.

Skilled worker participation for manufacture and quality control

High quality resources for production

Up to date knowledge for quality control

Efficient methods and recently developed strategies

Factors Affecting The strategic Issues of Pepsi Company:

Verbal communication


Political principles


Governmental interference


Market research






Labour relationships

Strategic Alternatives of Pepsi Company:

Pepsi Company follows the Multi-domestic strategies. This Company produces their products separately in poles apart of the countries. All countries manufactured goods are not same. They produce their products by following special strategy for different countries, based on the internal and external situation of the country.

Strategy Formulation:

In strategies formulation, Pepsi Company establishes its goals and strategic plan that will pilot to the achievement of their mission goals.

Strategy Implementation:

Pepsi Company develops the plans and policy for achieving the formulated on intercontinental strategies to attain its mission and objectives.

SWOT Analysis Strengths:

Physically powerful sharing network

Strong variety goods

Low price of Operations


Low export levels

Maximum ability to invest and achieve economies of scale Opportunities

Huge Domestic Markets

Export Potential

Higher Income among community


Large Domestic Markets

Export Potential

High Income among People



Tax and authoritarian zone

Cheap in rural order

PEST Analysis of Pepsi Company:

PEST investigation of Pepsi Company:

Winning sides Factors:

Tax procedure

Employment laws

Environmental system

Trade restrictions and tariffs

Political stability

Economic Factors:

Economic growth

Interest rates

Exchange rates

Inflation rate

PEST Analysis of Pepsi Company:

Social Factors:

Health awareness

Population growth rate

Age distribution

Career attitudes

Emphasis on safety

Technological Factors:

R&D activity


Technology incentives

Rate of industrial change

Gain over Customer Satisfaction:

After success of SWOT and PEST study as event The Pepsi Company implementing their strategies based on dissimilar marketplace position as well as customers response. This company will set up their designed and goals for being strong circumstances in the international market place. Depending on those anxiety factors The Pepsi Company is constructing up a Control organization for their overall controlling of management for gaining over their clients by providing heart pleasure.

Strategic Planning - Why Do It?





As an organization grows, it becomes more important that all those concerned are apparent about what that organization is looking to attain and how it is setting up to do it. latest UK Charities legislation, also, is focusing much more closely on the collision that a helpful organization is having. This is where Strategic Planning comes in. At its most simple the Strategic Plan is a file that explains what the organization is planning to achieve and how it tactics to do it. This then sets the course for the organization and enables all those mixed up with the charity - mainly those in management and management positions - to review regularly how well the organization is performing and to take suitable action. If there is no plan, there is nothing in writing against which a review can be carried out, and performance and impact are left to personal opinion. It is normally asked how regularly a Strategic Plan should be created and how far out should the plan look? There is no right answer to these questions - it is a balance between many factors including the degree of indecision within the surroundings in which the organization is operational, the time it takes to develop new facts and the amount of resource that the organization is ready to put into the development. If the process is not approved out commonly enough, the organization can become slow to react to change. Too frequently, and the planning can take up too much time. Assessment these factors have led many organizations (including Tear fund) to carry out an annual planning process looking forward for 3 years.

Strategic Planning - The Essential Elements

There are 3 phases to the Strategic Planning Process - Setting Direction Within the background of the overall constitution aim and mission of the organization, what are the explicit challenges and assessable objectives that the organization wants to achieve? - Turning Direction into Plans this phase is mostly about 'how?' What, specifically, is the organization? Planning to do to attain its objectives?


This is the hardest phase for many organizations. Yet without it, the Strategic Planning Process is of limited value. Within the implementation phase, the organization monitors and reviews how well it is doing in comparison with the plan that was agreed. Within each of the three phases, communication is an important part of the overall process. There are many different stakeholders (people who have an interest in the plan), and they can only contribute to its achievement if they are kept informed about what is going on!






The Information Systems community has grown considerably since 1984, when we began publishing the Wiley Series in Information Systems. We are pleased to be a part of the growth of the field, and believe that this series of books is playing an important role in the intellectual development of the discipline. The primary objective of the series is to publish scholarly works that reflect the best of the research in the Information Systems community. We are also interested in publishing pieces that cannot only help practitioners but also advanced students to understand the myriad issues surrounding IS and, in particular, the management of IS. To this end, the third edition of Strategic Planning for Information Systems by John Ward and Joe Prepare is an excellent example. Previous editions have been highly successful, and we believe the third edition will be even more so. The book adds new material on the latest developments in Information Systems, in particular 'e' (e-business and e-commerce), knowledge management, customer relationship management, enterprise resource planning and outsourcing. But, fundamentally, the book is not simply about technology or techniques but rather the strategic issues of how such technology can be used successfully in organizations. Ward and Peppard focus their attention on why and how to develop a strategy to use IS effectively. Such a treatment is important, and we believe this book will be of interest to practitioners, students and academics alike. Since the second edition of this book appeared in 1996, we have seen information Technology (IT) become an increasingly integral component of everyone's working life and personal environment. IT is now ubiquitous and enables a degree of connectivity that was difficult to envisage even 10 years ago.

The technology has evolved rapidly, producing significant advances in its capabilities and hence the business options and opportunities now available. Without doubt, the Internet has evolved into a significant business opportunity-when the second edition was published,, the doyen of the Internet, had only just come into being. Indeed, since the second edition the so called ' bubble' has inflated and burst leaving much in its wake. Apart from the spectacular failures,

Many companies are now downgrading their forays into the world of cyberspace; many online ventures are even dropping their names. Despite this, there is no doubt that we have still only scratched the surface of the possibilities.

Basic discussion on value of organisation process Interactive digital television (iDTV) offers great promise in bringing the Internet and new broadcast services directly into the homes of consumers. Wireless technologies are poised to provide further opportunities to organizations as both employees and customers become less dependent on location in carrying out their jobs and conducting business. In the six years since the last edition, the language of information systems and technology (IS/IT) has also changed. E-commerce and business have come into common business parlance and even entered the home via TV advertising! While e is largely a relabeling of what was previously known as IS/IT, there are a number of new dimensions

In the use of IT implied by e. These are considered in this edition. Perhaps, most importantly, the introduction of these new terms attracted increasing senior management interest in IS/IT and its importance to their organize- As stated in the preface to the second edition, the following example

Problems can still result from the lack of a coherent strategy for IS/IT investment:. Business opportunities are missed; the business may even be disadvantaged by the IS/IT developments of others. Systems and technology investments do not support the business objectives and may even become a constraint to business development.

Lack of integration of systems and ineffective information management produces duplication of effort, inaccurate and inadequate information for managing the business. . Priorities are not based on business needs, resource levels are not optimal, project plans are consistently changed. Business performance is not improved, costs are high, solutions are of poor quality and IS/IT productivity is low. Technology strategy is incoherent, incompatible options are selected and large sums of money are wasted attempting to fit things together retrospectively.Lack of understanding and agreed direction between users, senior management and the IS/IT specialists leads to conflict, inappropriate solutions and a misuse of resources.



Vision and mission statements are very important for successful leaders to clear show the directions of the organization. Vision and mission statement are clear then organization can powerfully communicate and motivate your team or organization realize an attractive and inspiring vision of the future.

Mission Statements and Vision Statements are two different jobs.

Vision statements also define organizations purpose, and values of the organization. For employees, vision gives directions about how they have are expected to behave and inspires to give their best.


A mission statement shows the basic purpose and functions of an organization.

Identify the company`s winning idea for example by providing fresh and healthy food and products to its customers.

Identify the key measures of success means the affordable and reasonable prizes for a customers and providing a best quality and good quantity in which customers are satisfied.

Combine the winning idea`s and success on measureable goals has totally satisfaction derived by the customers. All the ideas gaining from customers are important part of any organization.

"Mission statement is too recognized as a leading brand for fresh foods and products offered to customer's at the most reasonable and affordable prizes and healthier and totally satisfying item."

The mission statement is"…. An enduring statement of purpose that distinguishes one business from other similar firms"

Pearce, J. (1982), "The Company Mission as a Strategic Tool." SLOAN MANAGEMENT REVIEW, 15:15-24.

Accordingly, a good mission statement should include language that helps to communicate one organization from another; it shows that what benefit and advantages offered by competitors to customers.


Without sound mission statement business cannot survive because it's a blind forces of late shape the purpose of an organization. Excellence itself can survive only in organization committed to a strong purpose.

Good mission statements can be:-

Purpose of statement




Resource allocation


A vision statement is a description of desired outcomes that inspires energizers and helps to create a mental picture of a target.

Vision statement is the true picture of the organization's aims and objectives and how organization would chase these objectives. Difference between Mission and Vision is that mission give a brief description but vision statement tells that where do we want to go in future that show the long term view of the organization.


Vision and mission statements are very important for successful leaders to clear show the directions of the organization. Mission statement is too recognized as a leading brand for fresh foods and products offered to customer's at the most reasonable and affordable prizes and healthier and totally satisfying item. A vision statement is a description of desired outcomes that inspires energizers

The Objective of Business





This document presents an updated strategic business plan for the implementation of a digitally-based recorded talking book system for the free national library program operated by the National Library Service for the Blind and Physically Handicapped (NLS), a component of the Library of Congress (LC); the nationwide network of cooperating regional and local libraries; and the U.S. Postal Service. While analogue audio cassette book (RC) and cassette book machine (CBM) technology, the backbone of the current system, has facilitated a reliable and cost-efficient delivery system for books since the 1970s and for magazines since the 1990s, it is now outdated and nearing the end of its useful life. Because many NLS patrons are aware of technological advances, they have heightened expectations improvements. Further, the impending obsolescence of key elements of RC and CBM technology also warrants the conversion of the system to an appropriate alternative technology.

For these reasons, NLS has begun to implement digital audio technology as the backbone of the future system. Patrons, the libraries that provide direct service to patrons, and NLS, will realize improvements associated with digital technology. The program will continue to provide RCs and CBMs to patrons during the transition, but digital talking book (DTB) and digital talking book machine (DTBM) technology will ultimately replace RC technology just as RC technology replaced its predecessor, the rigid disc (RD) technology. The transition to this digital technology is expected to begin for patrons in fiscal year (FY) 2008 and should require approximately four years to complete. The implementation plan is presented in this document. NLS has determined that the digital system will be based on flash memory technology, specifically Universal Serial Bus (USB) flash drive technology, and envisions the following advantages (not in hierarchical order) relative to the current system:

Flash memory has improved audio reproduction quality, which will provide better audio quality for patrons.

Storage densities and capacities are larger and will provide easier portability for patrons, require that they track fewer cartridges per book, eliminate the need to turn the cassette over and flip a switch to access the other side, and require less storage space for collections at network libraries. Flash memory cartridges have a long life and may be reused many times while retaining high-quality audio reproduction; also, the duplication process is relatively simple.

Flash memory is a widely available, mature technology whose price is declining rapidly. This will make its use cost-effective by the time future operations commence.

Playback machines will be smaller and weigh less, ensuring better portability and requiring less storage space in network libraries.

Machines will consume less power because they will have no moving parts, thus enabling longer operation for a given battery capacity.

Machines will be more reliable, resulting in fewer malfunctions for patrons and fewer repairs by staff, volunteers, and contractors.

Fewer, simpler repairs will mean lower cost and less storage needed for repair parts.

Machines will last longer, since they are far more robust and resistant to damage.

Machines will be less expensive, enabling the savings to be redirected to other facets of the program.

While the new system will obviously improve the services provided to patrons, it will also be cost-efficient for both network libraries and NLS. While the costs of book production and distribution may be slightly higher than they are for the current system, the costs to produce and repair playback machines will be lower and will more than compensate for the higher production and distribution costs. NLS should incur annual book and machine costs that are significantly lower than those of the current system. Network libraries, as well, should enjoy substantial savings because of such factors as reduced storage space requirements and improved cost efficiencies in book and machine maintenance.

NLS has already submitted a request to the LC for supplemental funding for the large capital investments needed to implement the new system in a reasonable amount of time. After DTBMs have largely replaced CBMs and inventories of reusable flash drive cartridges have been accumulated for both mass duplication and possible future duplication-on-demand operations, NLS's normal annual funding ($53,904,510 for FY 2007) will suffice for continuing operations of the new system.

Two funding scenarios have been considered and evaluated, and the associated transition plans have been developed. They are as follows:

Plan 1, in which supplemental funding is received and all patrons who want DTBMs will have them by the end of FY 2012. This plan would require about $76.4 million in supplemental funding, which would be spent from FY 2008 to FY 2011 at rate of $19.1 million per year. Most likely, no shortages of CBMs would occur at any time in the transition, and operations would go smoothly.

Plan 2, in which no supplemental funding is received and implementation of the new system would have to be accomplished with current funding only. In this plan, the transition to digital will not be accomplished until after FY 2017, when about 83,000 people who want DTBMs would still not have them. Actual shortages of CBMs would occur in FY 2011 through FY 2012, and operations would be difficult in FY 2010 and FY 2012. Commercial repairs of CBMs would have to continue through FY 2014 rather than FY 2011, as in Plan 1.

NLS is concerned about the prolonged transition described in Plan 2. The reasons are as follows:

Insufficient CBM inventory, while the program currently has a storage inventory of CBMs, a shortage could develop if it becomes necessary to extend the cassette program during a prolonged transition.

Inability to obtain CBM repair parts, as cassette playback machine technology becomes obsolete; obtaining repair parts for CBMs will become more difficult.

Inability to obtain RC components, another serious concern is the potential inability to obtain components for RC production. The technology is becoming obsolete, worldwide demand for products using the technology continues to decline substantially, firms continue to exit the industry as demand declines, competition becomes more intense, and profitability decreases, thus resulting in fewer sources of supply and higher costs for buyers. The greatest concern is for the availability and price of cassette tape, followed by shells and replacement parts for duplication equipment.

Decline of volunteer repair capacity, both demographic and structural changes in the telecommunications industry are resulting in an impending decline in the number of machine repairs that can be performed by volunteers due to a decline in the volunteer base. A prolonged transition would mean having volunteers perform the bulk of CBM repairs for a longer period; however, the decline in volunteer repair capacity would result in an increase in the number of CBMs needing repairs and/or the need to use commercial CBM repairers.

Higher costs for maintaining dual systems, relatively more resources, including labour, equipment, and supplies, are required for storing and circulating multiple types of media and playback machines than for a single type or fewer types. It will be more expensive to produce books in both RC and DTB formats because mass-duplicators' unit costs and charges for job set-ups will be higher for smaller quantities.

Negative public relations, many patrons will be wondering why the transition is taking so long. Some patrons already have heightened expectations for digital technology, either because they use digital audio or other devices, or simply because they are aware of the potential service improvements. NLS wishes to eliminate, or at least minimize, any negative feelings associated with a prolonged transition.

Evaluation of these objectives

Great Value from Monitoring and Evaluation

As stated several times throughout this library topics (and in materials linked from it), too many strategic plans end up collecting dust on a shelf. Monitoring and evaluating the planning activities and status of implementation of the plan is -- for many organizations -- as important as identifying strategic issues and goals.

One advantage of monitoring and evaluation is to ensure that the organization is following the direction established during strategic planning. The above advantage is obvious. Adults tend to learn best when they're actually doing something with new information and materials and then they're continuing to reflect on their experiences. You can learn a great deal about your organization and how to manage it by continuing to monitor the implementation of strategic plans.

Note that plans are guidelines. They aren't rules. It's OK to deviate from a plan. But planners should understand the reason for the deviations and update the plan to reflect the new direction.

Responsibilities for Monitoring and Evaluation

The strategic plan document should specify who is responsible for the overall implementation of the plan, and also who is responsible for achieving each goal and objective.

The document should also specify who is responsible to monitor the implementation of the plan and made decisions based on the results. For example, the board might expect the chief executive to regularly report to the full board about the status of implementation, including progress toward each of the overall strategic goals. In turn, the chief executive might expect regular status reports from middle managers regarding the status toward their achieving the goals and objectives assigned to them. Key Questions While Monitoring and Evaluating Status of Implementation of the Plan

1. Are goals and objectives being achieved or not? If they are, then acknowledging, reward and communicate the progress. If not, then consider the following questions.

2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?

3. Should the deadlines for completion be changed (be careful about making these changes -- know why efforts are behind schedule before times are changed)?

4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals?

5. Are the goals and objectives still realistic?

6. Should priorities be changed to put more focus on achieving the goals?

7. Should the goals be changed (be careful about making these changes -- know why efforts are not achieving the goals before changing the goals)?

8. What can be learned from our monitoring and evaluation in order to improve future planning activities and also to improve future monitoring and evaluation efforts?

Frequency of Monitoring and Evaluation

The frequency of reviews depends on the nature of the organization and the environment in which it's operating. Organizations experiencing rapid change from inside and/or outside the organization may want to monitor implementation of the plan at least on a monthly basis.

Boards of directors should see status of implementation at least on a quarterly basis.

Chief executives should see status at least on a monthly basis.

Reporting Results of Monitoring and Evaluation:

1. Answers to the above key questions while monitoring implementation.

2. Trends regarding the progress (or lack thereof) toward goals, including which goals and objectives

3. Recommendations about the status

4. Any actions needed by management

Deviating from Plan

It's OK do deviate from the plan. The plan is only a guideline, not a strict roadmap which must be followed.

Usually the organization ends up changing its direction somewhat as it proceeds through the coming years. Changes in the plan usually result from changes in the organization's external environment and/or client needs result in different organizational goals, changes in the availability of resources to carry out the original plan, etc. The most important aspect of deviating from the plan knows why you're deviating from the plan, i.e., having a solid understanding of what's going on and why.

Changing the Plan is sure some mechanism is identified for changing the plan, if necessary. For example, regarding changes, write down:

1. What is causing changes to be made?

2. Why the changes should be made (the "why" is often different than "what is causing" the changes).

3. The changes to made, including to goals, objectives, responsibilities and timelines.

Manage the various versions of the plan (including by putting a new date on each new version of the plan).

Always keep old copies of the plan.

Always discuss and write down what can be learned from recent planning activity to make the next strategic planning activity more efficient.