This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
In business world Strategic Planning has merge in most important process with in an organization, running business in different ways. 'Strategic planning' involves all the activities of an organization including internal as well as external factors that are influencing or may affect the business directly or indirectly. It is capable of determining where an organization is going on, and where we want to get it.
'Strategic Planning' usually concentrate on entire organizational activities. Various approaches, prospective, tools and techniques are used in 'Strategic Planning'. Several factors such as size and range of an organization, top leadership, culture, skills, talents of planners and environment, effectively influence the 'Strategic Planning'. The spirit in strategic management is to mould an organization to harmonize it expectation and needs of all stakeholders. In the present age of competition and rapid changes in business sectors especially and in other sectors generally, we can no longer run our business. Thus it is perfectly convincing to keep on making strategies to deal with the new changes, trends and challenges for the development of an organization.
To define 'Strategic Planning' three basic steps are involved, firstly we have to determine the current position of the current status. Secondly we need to determine where we want an organization reach. Finally the procedure or the work plans how to attain the required [position of an organization.
PERSPECTIVE OF ORGANIZATION
MMQ halal meat and grocery has been working for the past 21 years in Brixton, London. It was established in 25th January, 1990. Basically its started business from a small meat shop with halal brands selling chicken, beef and mutton. With the passage of time it developed its business and provided more kind of meat and flash. In 2005 a fish section was also set up to cater the needs of the local regular customers of the surrounding area. And in 2006, considering on the growing demands of customer for food commodities, a big section of grocery was set up to serve the customer all food items at one place. By the end of 2010 the organization is running five branches working in different markets in Tooting Broadway, Peckham, Lewisham, Nor bury and Stockwell.
As an employ of MMQ halal meat and grocery I have been lucky enough to avail a chance of job especially in leadership and planning department with the senior managers. Thus I have been completely able to observe, analyse and critically review the strategies of organization. I have been able to apply my knowledge, information and experiences, learning what I have had in form of formal and informal education.
As per the requirement of the assignment I have to discuss, explain and analyse the different points and questions divided into six tasks in sequence. Thus every task will be done with diligence and commitment.
This task demands for the following questions to be answered.
What is the impact on business of external factors?
Before going into details we need to understand the external factors that affect the business. The major external factors are
Opportunities: Basically external analysis includes several trends, political, technological, ecological, social, moral and legal. A vigilant wide look outside organization, enables find more opportunities and new avenues to the improvement. To run a business smoothly and successful an organization needs to aware of all opportunities in the market environment. Thus it can develop and expand business.
Threats: Contrary to opportunities, threats are more important factor outside an organization that provides us guidance and keep us aware of losses, hazards and perils that may put the business of an organization into frustration and even endanger its survival. Having a look and analysing these factors balanced strategies can be created to run an organization smoothly.
SWOT Analysis: SWOT analysis stands for strength, weaknesses, opportunities and threats. To amend or change plans to solve problems and take decision SWOT is most frequently used tool in business sector. It is mostly applied at early stages of planning. Regarding a particular task the record of internal factors that is strength and weaknesses and that of external factors opportunities and threats is generated.
SWOT analysis enables us to identify and analyse all the four factors which are external and internal. It helps analyse the situation to frame the suitable techniques and judge the competencies and abilities. This analysis through syndicate work sets better criteria of progress. In an organization SWOT analysis provides a chance to everyone to contribute in decision making instead of thrusting the one man's ideas, views and visions. Through the process of consultation and a group work, effective strategy can be framed to run an organization. SWOT analysis makes the employees and management do some tangible research work and keep its records for the further planning in future.
STEEP Analysis: this tool exclusively deals with the external factors of an organization, social condition, technology, economic conditions of the regular customers, ecological condition and political situation directly impact the business of an organization: The STEEP analysis effectively analysis the total external factors, then successfully enables and organization to make appropriate strategies. Ordinary STEEP analysis is not applied because it involves a lot of work and research. In extra-ordinary condition STEEP analysis provide an effective guidance to make plan.
What happens when a significant change occur in external environment?
The external factors keep on changing; no organization or force can prevent such natural and environment changes. What the organization can do is the making of strategies to suit the new situations and developments. A successful organization always keeps aware of the external changes and get ready to cope with the o coming challenges.
As a result of significant change in the external factors for example social, political, ecological and legal, an organization needs to change and amend its strategies to maintain its position as a competitor in the market. We can say that internal factors of an organization are influenced generally by external factors.
General analysis techniques for example SWOT, PEST, STEEP, EPISTEl and SMART provide suitable guidance for further strategic plans and framework. The focus of all analysis tools should be to consider the needs and wants of all stack holder. Among stack holders we have customers, clients, employee, competitor and market places. When we have different branches or sale points in different environment then we can't implement the same strategy in all sale points which are in working different conditions. In such situation we should make our specific strategy for a specific area. This is an agreed fact that with the change of external factors the change in strategy of an organization is inevitable otherwise it becomes impossible to run a business under old strategy in the new condition where we have other competitor on market.
What are needs and expectations of stake holders?
Shareholder, supplier, workers, customers, directors, partners, investors, retailer and whole sale dealer etc. are the stakeholders. While constructing a plan all stakeholders should be taken into account. By ignoring or neglecting one of them or some of them a functional strategy can't be created. The basic function of strategic planning of an organization is to develop a good co-ordination and co-operation among all the stakeholders.
The satisfaction security and credibility are key factors for a successful business. They enhance the constructive and productive role of every stakeholder that results in innovation and growth of business. Different stakeholder have different needs and expectations for example an employee will seek a job security and reasonable wages for his work or services, a customer would like to be given good quality and good service, an investor would wish more profit and security of capital, the owner would like to expand the business with more profit and supplier will ensure his payments in return of deliveries. To manage all these tasks, an organization is depend of strategic planning that is capable of putting every stakeholder in the right place. Organization is responsible for this task to perform with efficiency. Appropriate strategic plan brings all stakeholders on a common point that is satisfaction which puts responsibility on the stakeholder to keep balance among them.
The failure of strategy results in basic dissatisfaction and unrest which can ruin all the business and put the organization's existence into danger, for example where an employee is not satisfied he would not care for the benefits of the owner and where the supplier is doubtful of having payments, he would not give delivery that would hinder smooth run of business cutting the sales down and causing loss in business.
How stakeholders influence the decision making?
In the business principles it is agreed fact that the stakeholders play a vital role in an organization. All the activities within an organization are kept in accordance with the need and expectations of a stakeholder, because an organization runs through a willing contribution in different forms. For the permanent or continuous contribution to run a business an organization is bound to consider and respect their expectations but on the other hand stakeholders are not bound to contribute in any condition, they are free to withdraw their contribution when they are not satisfied with management and strategy of an organization for example a manager or worker may leave job and move to some other employer. The same is true to other stakeholders may find other points, people and organizations to do business with. So the fear of dispersion of the organization of stakeholder influences directly the leadership and planners. Strategic planning needs a great cogitation and broad vision, no carelessness or negligence is allowed because it is sensitive and core job for the survival of an organization and growth of business.
Using appropriate tools to analyse effects on business.
To measure the effects on business generally SWOT analysis works well. Through the record of SWOT analysis, we take information and data from weaknesses and threats, SWOT analysis chart assist to signify the essential description of performance of company at present and targeted performance in future.
Leaders and planners of an organization get assistance from SWOT analysis. For evaluation of SWOT analysis is very easy to use. User does not find any problem in using data and input. SWOT evaluation chat provides information to general readers in way simple way. In SWOT analysis diagrams are used to understand the effects on business. Simply we need to understand the X, Y and Z axis. X axis indicates the financial recourses and market repute and leadership team. The relevance of weaknesses and strengths of organization is represented by Y axis, the strategic impacts are shown by Z axis.
HOW TO EVALUATE THE COMPITITOR STRENGTH OF AN ORGANIZATION
Different analysis tools in strategic planning assist an organization to look at the strength of organization. SWOT analysis process provides sufficient information and facts to be relied upon in this regard. To measure or evaluate the strength, particularly we need to have ample knowledge of internal factors and recourses of an organization that includes shareholders, owners, capital and trained employees, workers and business places. Competitive strength actually, is to gauge our strength in comparison with other competitors in the market e.g if our organization invest less capital to run business while the other competitors invest more on innovations and setting their sale points well-furnished then other organizations doing the same business would surely surpass and attract even our customers and other stakeholder and eventually the organization would compelled by the circumstances to stop the business.
HOW THE WEAKNESSES OF CURRENT BUSINESS STRATEGY AFFECT AN ORGANIZATION?
To identify weakness with organization, provide solid basis to improve the business and get over the problems, weaknesses include all the factors that are unlikely to the improvement and growth of organization for example incredible investors, irregular suppliers, untrained and irregular workers, poor services and lack of vigilance in organization. Through using analysing tools, we are able to get a useful data of weaknesses that will actually help us to eliminate all the weaknesses through strategic planning and resultantly searching the motives and mission of the organization.
HOW TO MEASURE THE EFFECTS OF PROBLEM POTENTIAL OPTIONS ON BUSINESS?
Strategic planning formulates and identifies potential options which are implemented to develop the business for more profit and services to the customers. When a new option is implemented, it has its effects on business, might be positive or negative. The leadership and planners should be vigilant and alive to the effects on business. For example if an option of raising prices is implemented, it would surely affects the sales of products, customers and ultimately the whole organization. If customers think raising prices are undesirable, they would go to other shops to purchase the meat and other basic amenities o life. Once the option is implemented its starts giving results within a fortnight. Either daily sales cash would come up or down consistently, definitely raise in prices will earn more money for an organization. The organization has one thing essential to exercise for customers and other stakeholders that is convincing them about the increase in prices is not to earn more and more but is due to rise of prices in the market.
AN AGREED STRETEGIC PLAN.
MMQ Halal meat and Grocery has worked out a plan to be implemented from 1st march 2007. The plan is in mostly used forms of one page plan. The goals and targets have been completely determined clearly in this plan. The concerned employees and facilitators are listed vividly. This kind of plan has been easier to implement and results giving one.
RESOURCES NEEDED TO IMPLEMENT PLAN
The implementation of strategic plan is an important stage in strategic planning. This is likely to get results. We need resources for implementation which are given as below:
A complaisant hall for managers and services men.
Audio and video aids for training of personnel.
Different models of products for organization which are sold or the organization is intened to sell.
Advertisement through print and electronic media.
Pamphlets posters and leaflets.
Facilitators to hold workshops in the different areas.
More skilled employees, fully conversant with English language.
While implementing a plan we need to be aware of the factors that may affect the business and values of organization. To solve the problem, comparison of objectives with current business, plays an important role. Such comparison is capable of providing a guideline for the future planning. The mission statement and vision statement are derived from the comparison. The mission and vision statement lay boundaries and reflects targets, commitment, mission and code of ethics for an organization. In planning and management mission and vision statement work as a spirit in an organization. No action, strategy or planning should conflict or contradict the mission and vision of an organization. Keeping in view the mission and vision statement and agreed strategy for change management and to implent potential option is essential, which is impossible otherwise.
EVALUATION OF STRETEGIC PLAN
Evaluation of the strategic plan is hard job, it is generally ambiguous for the employees and managers and those who are implementing a plan that how they are going on. Whether their effects are going well, or in the wrong direction. The organization with this scorecard is able to get a clear picture of the actions to understand and evaluate the planning progress.
A clear understanding can lead all the employees of organization to implement the strategic plan in an appropriate manner. To measure and track strategic plans, the automated scorecard is used generally in an organization. Thus they can evaluate their performance. The score card process includes harmonizing the strategic performance with motives and targets. In 21st century the challenges in management planning need to be put in alignment. Practically it is a difficult target to attain customers' employees and investors and other stakeholders in alignment.
USING BALANCED SCORECARD
The progress of an organization under the specific plan can be easily judged or accessed by using balanced scorecard. The managers are able to monitor the operations under plan implementation. With visible picture and progress, the manager can spend more resources with confidence to develop more business. The score card provides a suitable platform for communications, information and feedbacks. It concentrates on communication to cope the hurdles early and avail the opportunities more quickly than the traditional communication system. By deploying it completely a management is able to keep all employees in alignment.
SCADUAL FOR IMPLEMENTING STRETEGIC PLAN
The new strategic plan 2011-2012 includes all practical, measurable and achievable objectives and targets in one year. It is a reasonable time to implement the strategies worked out by organization. The plan is In form of documents that has been displayed at table and contains a list of targets and goals. Resources and finances required for implementation have been given in plan clearly.
RESPONCIBLE TO IMPLEMENT
All the five senior managers of organization are responsible to implement the plan. They are authorised to manage technical assistance, local facilitators and funds required for procedure of the implementation. The managers can contact the directors for further assistance and guidance in this regard. On-going program is the foundation for the plan, some program will be enhanced and expanded in first three months. This will need more staff to accomplish the plan, the salary amounts for the new employees will be included in budget. Funds would be provided by the organization to set up new business points.
After each one year a strategic plan is introduced for implementation.
STRETEGIC PLAN 2011-2012
TIME AND DATE
TIME AND DATE
(i) Training if the senior managers for holding workshops
All managers should reach at head office
(ii) Get over communication problems
Proper training of staff to remove the hesitation while dealing the customers
1st march 2011 12:00 PM
(iii) Ensure the deliveries regularly
Holding the meeting with #suppliers and whole sellers
(iv) Visit the farms and slaughter houses
One manager and three middle managers would visit the farms
15 may 2011 9 AM to 6 PM
(v) Innovations and renovations
displays and lighting will be updated and necessary repair work will be done.
(vi) Sufficient and able staff
Recruitment of new employees will be completed
15 Aug to 31 Aug
(vii) Opening new sales points
five new business points shall be opened
(viii) Maintain quality and stranded
monitoring team will be formed
(ix) Evaluation of business
Using tools and techniques the performance of the running business will be measured
(x) Strategic plan 2012-2013
Team of experienced and able managers and planners will manage the strategic plan for the new year
5-31 Dec 2011
1st march 2011 12:00 PM
15 may 2011 9 AM to 6 PM
15 aug to 31 aug