"Strategy is setting objectives for an organization and providing a path for it to progress towards the strategy process is the initial stage in achieving success. The strategy is like a set of rules that guide and report the actions and decisions of managers without this there is unnecessary confusion. The process includes two key elements: evaluation of the present and expectation of the future". (ibid)
In case of Channel Tunnel there was no strategy due to which the progress towards the objectives was wrong and there was deviation every time e. g redesigning, cost escalation, poor risk management, shareholders fail to invest, project was not completed in specified timeframe and allocated budget .
According to Beck, et al. ( 2000) "planning a project involves identifying how work can be scheduled to meet the requested deadlines, how much time will it take to complete each item of the work, defining work order". In case of Channel Tunnel there was lack of planning as the construction was started before designing was properly carried out, various systems such as stock, mechanical and electrical systems were not defined before funds were generated. Planning plays an important role in the success of project. Example of good planning is Sydney Olympics.
Get your grade
or your money back
using our Essay Writing Service!
According to Daly, J, ( 2005) "the individual to whom authority ,responsibility and accountability has been assigned for the overall management of resources, including technical, time and cost aspects of a project and the motivation of those involved" . In Channel Tunnel there was lack of management skill.
4)strategic Risk management:
"Risk identification is the first stage of risk management it develops the basis for the next steps: analysis and control of risk management. Correct risk identification ensures risk management effectiveness. If risk managers do not succeed in identifying all possible loses or gains that challenge the organization, then these non-identified risks will become non-manageable," (Greene and trieschmann, 1984).
"Risk identification is a process that reveals and determines the possible organisational risk as well as conditions, arising risks. By risk identification the organisation is able to study activities and places where its resources are exposed to risk" (Williams et al., 1998)
5) Strategic planning Goals:
The goal is a long rang aim for a specific period for strategic planning, it must be realistic and specific. Through strategic planning long rang goals are set to reach those activities through operational planning. After gathering all necessary information the outcome of strategic planning and strategic road mapping, is the setting of goals for the organisation based on its vision and mission statement
6)Strategic planning Objectives:
In strategic planning objective is a specific step which enables you to accomplish a goal. In planning Setting objectives involves a continuous process of research and decision-making. In organisation and firm Knowledge of yourself and your unit is a vital starting point in setting objectives.
In organisation and firm Strategic planning takes place at the highest levels and other managers are involved with operational planning. In planning the first step in operational planning is defining objectives and later the result expected by the end of the budget .
In effective performance management setting right objective is critical. By using such objective which has to be higher profits, shareholder value, customer satisfaction, may be admirable, but they don,t tell manager what to do.
The objectives must be:
be focused on a result, not an activity
be related to time
7)Strategic Planning (in nonprofit or for-profit organizations):
strategic planning determines where an organization will be next year, how it will get there and how it will get there are not. Strategic plan focus on whole organisation while business plan cover particular products, programme or service. there are variety of models and approaches used in strategic planning.
Strategic plan depend on the nature of the organization's leadership complexity of the organization's environment, culture of the organization. Size of the organization etc.
Variety of strategic planning models, including goals-based, issues-based, organic, scenario etc.
Always on Time
Marked to Standard
Goals-based planning is probably the most common and starts with focus on the organization's mission (and vision and/or values), goals to work toward the mission,
strategies is used to achieve the goals, and action planning, who will do what and by when. strategic planning often starts by examining issues facing the organization, strategies to address those issues, and action plans. Organic strategic planning might start by articulating the organization's vision and values and then action plans to achieve the vision while touch to those values.
Some planners prefer a particular approach to planning, eg, appreciative inquiry. Some plans are scoped to one year, many to three years, and some to five to ten years into the future. Some plans include only top-level information and no action plans. Some plans are six to eight pages long, while plans are more longer then normal.
an organization's strategic planners already know better that's what going on in an organisation this is good for business planning, too. However, to develop strategic plan it greatly helps to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more important than the strategic plan document, is the strategic planning process itself.
8)Strategic Analysis :
strategic plans is that they are merely to make a lists of what to accomplish over the next few years that the organization is getting progress are not.
strategic planning never seems to come in handy when the organization is faced with having to make a difficult, major decision.
strategic planning doesn't help the organization face the future. These complaints arise because organizations fail to conduct a thorough strategic analysis as part of their strategic planning process.
Instead, planners decide to plan only from what they know now. This makes the planning process much less strategic and a lot more guesswork.
Strategic analysis is the heart of the strategic planning process and should not be ignored.
9)Key strategic planning considerations for designing:
We have different kinds of perspectives, models and approaches which can be used for developing strategic planning. The important points to be kept in mind while developing a strategic planning is the nature of the organisation's leadership, culture of the organization, complexity of the organization. And the overall complexity of the organization's environment, size of the organisation and expertise of planners, etc.
The key strategic planning considerations are technological, legal, environmental, financial and organizational issues.
While developing a strategic planning we do keep in our mind the different environmental issues like the ecology of the area and the impact of the overall environment on individual and on society.
In strategic planning we have to consider the most advanced and easily available technology which is a user friendly and all the time workable hardware and software.
Government approval should be acquired while developing a planning and the important legal documentation should be completed.
Funds availability should be made certain, for that we have to know about the clientage. Cost estimation should be made, risk management plan for the cost and the sustainability of the project should be certain.
9.4) Organizational issues:
For the best execution of the project a best available team should be hired. For the best result a good communication and team work a good organizational culture should be developed. The aim of the following endeavour is to draw a sketch of the IT strategic planning for a library.
10) The key steps involved in the IT strategic planning process:
Steps in designing IT strategic planning process.
(1) Signing-off on project plans with management:
Detailed design of steps in the planning process;
IT Planning Team, a navigation Committee;
Detailed timetable for the process;
Allocation of people's time.
(2) Orienting the IT strategic planning team and performing a SWOT analysis:
Assigning readings to recognize what may be possible;
IT strategic planning questionnaire; Assessing the library's strengths, weaknesses, opportunities, and threats (SWOT analysis).
(3) Assessing the library's current environment and use of IT - review of the library's
This Essay is
a Student's Work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.Examples of our work
Current environment and use of IT environment includes walk through of the facilities and operations, and review with the planning team of the political, technical, and financial issues of the library and overall situation. It includes gathering and analyzing data. It should identify needed organizational changes in culture, management, and support and staff development. It conclude with formal approval of a technology needs assessment document. Planning technology involve review of building designs and plans with an architect, designer
(4) Assessing information technologies with the planning team:
Identifying and assessing current and oncoming information technologies for the foreseeable future; Anticipating the impact of technologies on the library's mission, goals, objectives, and roles.
the library's environment - and on services;
Reviewing possibilities, issues, alternatives, and strategic directions; and
Discussing the issues, concerns, and goals for enhanced information technology to provide expanded services.
(5) Reviewing with focus groups of staff and patrons key topics the possibilities, issues, and general courses of direction identified with the planning team.
(6) Conducting interviews with key individuals on possibilities, issues, etc
(7) Public and targeted web surveys.Ending up the planning phase include defining
Prioritizing, budgeting, and scheduling the technology implementation projects through working sessions with the planning team to produce an information technology strategic plan for the library:
That fulfills the planning component hierarchy :mission, vision, IT strategic goals, objectives, performance measures, and strategies.
That defines, evaluates, prioritizes, schedules implementation years, and decides about possible projects for implementing technologies and technology-based services for the library;
That validates the strategic fit of key recommendations;
That defines the resulting strategic directions;IT Project plans, budgets, and schedules;
That defines requirements for library organization and staffing to accomplish the IT strategic plan and the targeted technology implementation projects.
(9)Reviewing, revising, and finalizing the IT strategic plan with top management until final acceptance.
(10) Presenting the IT strategic plan for the library to the organization.
(11) Publishing and communicating the IT strategic plan to targeted constituencies: a communications plan may be developed to accomplish this.
11) The strategic planning process:
In competitive business environment, forecast-based planning or budget-oriented planning are insufficient for a large corporation to survive. The firm must have strategic planning that define defines objectives both external and internal to formulate strategy, and make adjustments as necessary to stay on track.Strategic planning process is shown by the following diagram.
Strategic planning process
Evaluation and control
11.0) Mission and objective:
The mission statement depicts company,s business vision, it include the purpose and unchanging values of the firm that guide the pursuit of future opportunities for business. In business vision the firm,s leaders define financial strategic objectives. Which involve sales targets and business growth. Strategic objectives related to the firm business position and measure such as market share and reputation.
11.1) Environmental scan:
It includes the following components:
Firm,s internal analysis
Firm,s industry analysis (task environment)
The firm,s internal analysis can identify the strengths and weaknesses and the external analysis depicts opportunities and threats. An industry analysis can be used through Michael Porter,s five forces. This framework evaluates suppliers, customers, entry barriers, and industry rivalry.
11.2) Strategic implementation:
Implementation of the firm involes resources and motivation of the staff to achieve objectives. The strategy is implemented which has a significant impact on whether it will be successful. The implementation might not succeed if the strategy is misunderstood.
11.3) Evaluation and control:
The strategy implementation must be monitored and adjustments made as needed.
It consist of following steps:
Perameter to be measured.
Target values for those parameters.
Compare measured results to the pre-defined standard.
Necessary changes to be make.
11.4) Strategic formulation:
The information from the environmental scan, the firm mach its strength to the opportunities, while addressing its weaknesses and external threats.
12) Strategic Plannning:
business review or preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but without it a business is much more likely to fail. A sound plan should: to make more detailed planning, motivate and involve others to explain business, it bring changes and make block for next plan. Strategic plan is not different from business plan. For business you need to make strategic plan to run the business in proper way. Strategic plan is short document wherease business plan is usually more detailed documents. strategic plan must be realistic and attainable so as to allow managers to think strategically and act operationally.
13) Key Steps towards a Strategic Planning:
The preparation of a strategic plan is a multi-step process covering vision,mission, objectives, values, strategies, goals and programs. These are discussed below.
12.0) The Vision :
In business The first step is to develop a realistic Vision. This should be a pen picture of the business in three or more years time in terms of its likely physical appearance, activities, size etc. Answer the question: "if someone from Mars visited the business, what would they see (or sense)?" Consider its future products, markets, location, staffing, customers, processes etc.
12.1) The Mission :
In the term of business Mission is The nature of business which indicates the purpose and activities of the business, for example, "to design, develop, manufacture and market specific product lines for sale on the basis of certain
features to meet the identified needs of specified customer groups via certain distribution channels in particular geographic areas". It indicate what the business is about and is infinitely clearer than saying. The following table contrasts hard and soft mission statements.
What business is/does primary products/ services key process and technologies main customer groups primary markets/segments principal channels/outlets
Reason for existence competitive advantages unique/distinctive features important philosophical/ social issues image, quality, style, standards stakeholder concerns
12.2) The Values:
The next element is to address the Values governing the operation of the business and its conduct or relationships with society at large, customers, suppliers, employees, local community and other stakeholders.
12.3) The Objectives :
The third key element is to state the business is business Objectives .the objective business should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business. These objectives could cover profitability technology, growth, offerings and markets.
12.4) The Strategies :
Strategies show the rules and guidelines by which the mission, objectives is achieved. Strategies cover the whole business which include such matters as organic growth, diversification, or acquisition plans, or they can relate to primary matters in key functional areas.
Use SWOTs analysis to help identify possible strategies by building on strengths, resolving weaknesses, exploiting opportunities and avoiding threats.
12.5) The Goals :
In strategic planning the management have target and Goals before taking step. Goals should be realistic, consistent, and achievable. They can relate to factors like market, products, finances, profitability, utilization, efficiency.
12.6) The Programs :
the Programs which set out the implementation plans for the key strategies. These should cover objectives, deadlines, resource, time-scales, deadlines, budgets and performance targets.
Bank of America
Bank of America in financial institutions is one of the world largest Bank. It serving consumers, large corporations and small and middle market businesses with a full range of banking, asset management, investing and other financial services. Bank of America is serving 53 million consumers and small businesses relationships more then 6,100 retail banking and more then 18,500 ATMs and leading online banking with 29 million users. Bank of America support more then 4 million small business owner , the company is working more then 150 countries to serve clients. Bank of America is a component of the Dow Jones industrial Average and is listed on the New York stock exchange.
13)Bottomline Technologies of bank of America:
Bottomline Technologies provides collaborative invoice, payment and document automation solutions to financial institutions, corporation and banks around the world. The company's solutions are used to manage process involving payments, transactional documents and invoice approval. Organisation used these solution achieve their needs for cost reduction, competitive differentiation of working capital. Headquartered in United States streamline, automate and manage processes involving payments, global cash management, transactional documents and invoice approval. Organizations trust these solutions to meet their needs for cost reduction, competitive differentiation and optimization of working capital. Headquartered in the United States, Bottomline also maintains offices in Europe and Asia-Pacific. Yh76423wea
14)Strategic Plan For Bank Of America:
1) bank of america has 19.6 million customers online and more then 5000 branch location. 19.6 million online customers, Over 5000 branch locations.
Bank of America merge june 30, 2005
For $35 billion purchased MBNA cash and stock
on january 1, 2006 merger closed
in the US it is the largest cridet card user
Bank of America cash position is very srongStrong
Its name is long standing
There is new acquisition
The availabality of convenient bankig
There is a lot of opportunities for investment
Bank of America has increased expenses
In the past decade the organisation market have gained more then 70%
5) Enviroment industry
Bank of America has new entrants
The business creats new buyers and suppliers
It makes new industry competitors
6)Overcome many companies
Manufacturers of car
Too many insurance companies
Related internet based copanies
7)Long Term Objectives
Market share increased
customer base increased
service fees reduced
8)Critical Success Factors
The effective Communication system
Loyalty of customer
Educate internet banking
Advertising to get new customers
Monitoring customer service contant
9) the strategy of Bank of America being ipllemented to make its revenue and to become number one bank in the united states.
15) SWOTs - Keys to Business Strategies :
For banking sector it is very important to achieve the objective of the company. the implementation of SWOT analysis is very important.
15.0) Strengths & Weaknesses:
These are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas. These include:
Sales, marketing, operation, efficiency, products, quality, distribution, promotion support, Management , systems, expertise, resources, capacity, processes, services quality, pricing, features, range, competitiveness, Finances, resources, performance; R&D, effort, direction, resources, Costs, productivity, purchasing, Systems, organization, structures.
If a startup is being planned, the strengths and weaknesses are related mainly to the promoter their experience, expertise and management abilities rather than to the project.
15.1) Threats & Opportunities :
The external threats and opportunities confronting a company, can exist or develop strategies in the following areas:
The company's own industry where structural changes may be occurring
for growth and maturity; established patterns and relationships.
The marketplace which may be altering due to economic or social factors such as Customers, distribution channels, economic factors, social demographic issues, political & environmental factors.
Competition which may be creating new threats or opportunities such as
Identities, performances, market shares, likely plans, aggressiveness, strengths & weaknesses.
New technologies which may be causing fundamental changes in products, processes, etc. Substitute products, alternative solutions, shifting channels, cost savings etc.
From the above statement we come to the conclusion that strategic planning for banking sector and for an organization is most important. Strategies shows the way how to achieve the mission and objectives of the organisation and business. It cover the whole business such as diversification and organic growth which is related functional area of the business. Strategic plan is not different from business plan for business you need to make strategic plan to run the business in proper way. Strategic plan is short document whereas business plan must be realistic and attainable so as to allow managers to think strategically and act operationally.