The Definition Of Corporate Strategic Planning Business Essay

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Strategic planning is more than ensuring your connection will stay economically sound and be able to maintain its assets, it is projecting where your organization expects to be in five, ten, or fifteen years, and how your group will get there. It is a organized planning procedure involving a number of steps that recognize the existing status of the organization, counting its assignment, idea for the future, working values, needs (strengths, weaknesses, opportunities, and pressure), goals, prioritized actions and strategies, action plans, and monitoring plans.

Strategic planning is the foundation stone of every ordinary interest society or group. Without strategic development, the society will never know where it is going much less to know if it ever got there. An important concept of strategic planning is an understanding that in order for the community to flourish, everyone needs to work to ensure the team's goals are met. Team members include all association homeowners, the board of directors, professional management, whether on site or through a management company and various service professionals such as accountants and reserve professionals. This squad needs to work as a joint body to be unbeaten. Part of the group idea is the institution of roles for the team players. Teams generally achieve poorly if everyone or no one is trying to be the quarterback.

NATURE AND SCOPE OF CORPORATE STRATEGIC PLANNING:

Strategic planning is a process through which the managing department of an organization identify it present status, develop systematic strategies for future by setting its future goals within a specific time frame, by considering its SWOT and operating values and all the strategies till the achievement of its settled goals. A Strategic planning is a comparatively new field of planning, modified from mainly two sources. Business schools have equipped leaders with institutional planning processes, which were developed from decision making and production control. Community planning schools have prepared planning staffs with models of social planning and physical land-use planning. The business model is more often tailored for a hierarchical organization with top-down control, although this has softened in the dot-com era. The community- planning model is more grass roots, bottom-up, consensus building and is better suited for non-profit organizations and local governments. The former is market share and profit oriented, and the latter is empowerment and constituent needs oriented.

MEANING OF ASSESSMENT?

Assessment or analysis is basically the scrutiny of the security, potential of preceding plan, its strength and effectiveness or the benefit or loss of the already planned activity. When an organization's plan fails or change in the environment require amendment in the strategy or plan already working in the market this all observe through assessment of the plan whether it is fail or success. We also can explain the definition of the word assessment as "Judgment of the motives, qualifications, and characteristics of present or prospective employees or agents"; so, this could be assumed that corporate strategic planning is assessment of consequences of the existing plan on the business.

WHAT ASSESSED BY CORPORATE STRATEGIC PLANNING?

Planning is indeed a process through which the organization assess or analyze it present position after adopting or implementing of the existing plan to check the consequences of the same on the business activity, the organization make its future target in the light of the available resources and the environmental factors which affect the organization's strategy , considering SWOT analysis (by assessing its strengths, weaknesses, opportunities and threats), While discussing the assessment on the corporate level then it must be borne in the mind that these all are only the methods and process of analyzing the effectiveness and efficiency of the worker of the company as well as paving the way for the higher authorities or for the top management to take the requisite actions or amend in the existing strategy to overcome the market by making its products/product mix as cash cows of the market. Strategic planning can not affect properly if it is inconsistent with the internal factors ( production resources, financial resources, human resources, competitive advantages etc.) and cannot assessed and formulate properly until and unless the true position of the organization never come before.

ASSESSMENT ENVIRONMENT CORPORATE STRATEGIC PLANNING:

The organization is formed for to fulfill the organization's objectives by satisfying the customer demands and this could only be possible by consistent organization's internal environment which would be formulated on the basis of micro environmental factors as well as of macro environmental factors. Assessment is the source through which the managers or the organizations can survey the market environment regarding product demand, price competition, place where the product could be supplied and promotions necessary for to meet the goals of the organization and the most important regarding the demands of the customer.

An organization's strategic planning effort also shaped by internal forces that are controllable by management. These internal forces include a firm's production facilities, financial resources, human resources, research and development resources, company's image, location and personal activities. Sometimes this can be difficult because of conflicts in goals of the organization and executive personalities. Production people like to see long production runs of standardized items. However, marketing executive may want a variety of models, sizes and colors to satisfy different market segments. Financial executive typically want tighter credit and expense limits than the marketing people consider necessary to be competitive. Analyses are having two phase; Internal and External. When word internal comes it means here the environment within the organization is being discussed and when it comes to External environment then there are several factors which must be assessed while making or developing the strategy. Market means consumer, it is strongly adhere that assess your customers very thoroughly its way of using likes and dislikes expectation with your product or brand along with the strategies which you plan for them, competition, supplier market.

(SWOT ANALYSIS (Strengths, Weaknesses, Opportunities, pressures)

SWOT analysis is the analogy which focuses upon the strengths, weaknesses, opportunities and threats of the environment in which organization operates. Special skills and competitive advantages etc. are the strength of the organization which dominant the organization upon the rivals and competitors, in the same time there are some weaknesses are thereof for the organization which cause difficulties for the organization to avail the opportunities available to it because of threats that sometimes of swear kind could be possible due to market variables, factors and forces of the market environment. Therefore, SWOT analysis enables an organization to know about its powers and problems and also focus upon the opportunities which the organization chooses to raise profits in the particular situation. As for developing a marketing strategy an organization has to aware of its position in the market, what is its strengths, and how can it change its weaknesses into its strengths by availing the opportunities available to it.

PRINCIPLES OF PLANNING:

Planning is a process through which organization defeat its hindrances/problems by formulating strategies and also implementing the same in the manner require to be implemented. For good planning, the organization has to audit its resources (like financial, production, human resources, competitive advantage etc.), audit market, trend of market forces, competitive advantage of rival and so on, to empower it to resolve all the lackness of the organization to meet its objective in the present situation by formulating and adopting such a strategy to defeat all the hindrance factors.

All plans of the organization will specify organizational objectives and means of achievement in the short, medium and long term. It outlines broad aspects of overall corporate development and provides a framework for specific functions to develop their plans. Following are the rules/principles of planning:

"Where are we now?" An organization has to audit its position for to formulate a good strategy and it is compulsory to evaluate for an organization that where it is now.

"Where do we want to be?" plans must comprehensive in respect of organization's future objective within the specific timeframe.

"Which way is best?" For making a good strategy regarding the marketing of the organization, the most difficult but most important requisite of planning is to choose the right strategy at right time and to take decisions in the course of the business with the changing in the environment.

"How do we get there?" When a plan is formed for future strategy then organization has to utilize its resources in accordance to achieve its objective by defeating all the hindrances through implementing the strategy.

"Getting there" The implementation of the strategies is the actual requisite of the planning because if an organization remains successful in forming a good strategy but fails to implement the same in the manner it was formed then this would be the failure of the strategy.

"Ensuring arrival" Controlling is such an important requisite of the strategic planning that if the marketing executive fail to implement the strategies then the fruits of the whole effort did for making useful strategies and the expenses incurred upon them shall all in vain, therefore, monitoring of marketing activities as well as of organization's internal and external environments is necessary for the long run of organization with profitability.

PROPERTIES OF GOOD STRATEGIC PLAN:

Good strategic plan posses the following properties, specifically, it should be:

A set of priorities. Setting goals allows for the plan to be adjusted according to altering requirements or capital.

Achievable, measurable, and time sensitive. Remember, it's better to do a few things well than many things poorly. The plan should contain goals that are measurable and have deadlines.

Flexible and responsive to changing conditions. The plan is a road map that may contain unforeseen detours such as unexpected crises, new opportunities, or changes in resources.

Short and simple. Plans that are more like a book will sit on a shelf. Keep it focused on the most important things to accomplish.

A unit, not a menu. A useful plan is not a wish book. Everything in the plan needs to be accomplished.

The means to an end, not an end in itself. The plan is the process by which it reaches its destination; it is not the destination.

Based on a three- to five-year period. The strategic plan should be a living document that has a one-year drop off and a new year added so that it always covers the same time period.

COMPONENT OF STRATEGIC PLANNING:

Strategic planning's three main components are:

PLAN DEVELOPMENT

PLAN EXECUTION

PLAN REVIEW

Several practical areas within this mechanism are similar in that all three require a team thought that is based on: ensuring the member's roles are clear, educating group members about the procedure, and using superiority statement when interacting.

PLAN DEVELOPMENT:

Plan development is the first part of strategic planning. During this period, the following evaluation should be done. For developing a plan the organization's managing department has to evaluate/assess the history of the organization and the significant accomplishments, organizations current status, current governance structure of the organization, division of duties amongst the employees and their responsibilities, determine the organization mission statement and its future vision, determine present operating values, performance a needs assessment, determining of key result area, consumers expectations, critical issues, define the role of key players, develop and prioritize long-range goals, develop short-term goals and action plans and monitor the progress.

Planning is a process through which organization defeat its hindrances/problems by formulating strategies and also implementing the same in the manner require to be implemented. For good planning, the organization has to audit its resources (like financial, production, human resources, competitive advantage etc.), audit market, trend of market forces, competitive advantage of rival and so on, to empower it to resolve all the lackness of the organization to meet its objective in the present situation by formulating and adopting such a strategy to defeat all the hindrance factors.

PLAN EXECUTION:

Plan execution is the second phase of strategic planning. In this step, an association put sits plan into action through the allocation of resources. This step has three components:

Programs: organization programs serve as blueprints for converting objectives into realities.

Procedures: Procedures are the precise series of the responsibilities required to complete the Programs.

Budgets: An organization should arrange budgets to fund programs. Instead, loads of expand programs based on their budgets. Just put, an organization should be strategy-driven, not budget-driven. If the plan progress phase was put together well, then the plan implementation phase is much easier. Many of the previously discussed items such as teamwork, roles, communication, and education are important and apply to the plan execution phase. Hold interrupted meetings to review progress on short-term goals and plans. With no interrupted meetings and reviews, the society will not move forward and attain its goals. Finally, adaptability is vital to the plan execution phase since all plans will have flaws. If the team members are not flexible, there may be simple issues that will not be resolved in a reasonable manner and the community will suffer.

PLAN REVIEW:

Plan analysis is necessary regularly to improve the plan and ensure its execution. Division of the plan review occurs naturally when there's panel revenue, a new owner, or changes in the regulation. In calculation, plan review needs to be listed to make sure the plan is meeting the community's goals. This can be achieved through surveys, management review conferences, or discussions at meetings. If the community fails to update the plan, the plan will eventually fail the community. Business experts propose that associations and their managers review their strategic plans yearly and completely repair their strategic plans every three to five years.

STRATEGIC OPTIONS:

Options are the creative alternatives which appears when the organization responds to its weakness or opportunities which the organization suffer or avail. Every organization has some weaknesses which become problem in the success of the organization but the strategic planning is the process through which the organization plans to convert its weakness into its strengths by availing opportunities available to it in the environment in which it survives. Real options have rapidly emerged as new decision logic to guide managers faced with uncertainty and irreversibility. Managerial flexibility to change course as events unfold creates real options-- the ability to improve an investment's upside returns or to limit its downside loses by making a sequence of decisions rather than just one initial decision. Because of the asymmetric nature of the option decision, i.e. exercise the option if it is valuable and do not exercise it if it is not, an investment having real options embedded in it is more valuable than one that does not.

Considering of strategic options is the process which could only be met with by critical analyzing of the SWOT of the organization and that can be done in small (sub-) groups; meanwhile taking care that hierarchy does not restrict people to actively contribute ideas. The formulation of planned options can take place after institutional study, and later than (or in combination with) reaching clarity on the assignment and aspirations of the organization. These strategic options which later on become the opportunities and if these opportunities are properly avail by choosing the right planning basing or all the handrail factors then these options become profitable and pave the way of success in the long run.

STRATEGIC DECISIONS:

Strategic decisions are those decision which an organization take to improve or amend its existing strategy because of emerging changes and changing in the behaviors of the consumer or because changing expectations of the consumers or any other factor. When an organization has formulate its corporate strategic planning by considering all the necessary requisite and implement the same through its resources but emerging changes or implication in the environment require sudden changing in the strategies which are necessary to take or consider such decision which the organization take during implementation are strategic decisions. Planning is continuous process and strategic decisions are also a part of it which is being taken suddenly to defeat the problems or to defeat the rival acts of the competitors or being taken due to sudden changing in the government policy regarding the industry.

HOW A GOOD STRATEGIC OPTION COULD BE CHOOSED?

When an organization during implementation of its strategy which is made on the basis of mission statement, future vision of the organization, operating values, present position of the organization and all other relevant factors responds to some of its weaknesses or avail some opportunities out of plan then strategic options come into motion because changing in the behavior of the market environment or any other factor require some amendment/improvement in the existing strategy of the organization, then the organization out of plan respond to some of its weaknesses or avail some opportunities necessary to be respond, which causes in the creation of strategic options. By responding opportunities or threats more than one strategic option come in work and the organization has to choose one of them by reviewing its strategies with emerging changes in accordance of its fundamental internal resources and all the other external factors. It also has to review its SWOT analysis critically again and amend or formulate its strategy in such a manner that it enables the organization to defeat the future uncertainties by converting its weaknesses into its strengths or threats into opportunities for the specific time frame which was projected by fulfilling the organizational objectives and the most necessary thing in this whole strategy is the implementation of the same should be proper in its letters and spirits. At this stage the organization has to choose that option which with a minor amendment/improvement in the existing strategy converts its weakness into opportunity and is hold consistency with the internal factors of the organization as well as of the external environmental factors.

RECOMMENDATIONS FOR ACHIEVEMENT OF CORPORATE STRATEGIC PLANNING OBJECTIVES

As has been discussed earlier that the basic purpose of an organization is earning profits and all the conventional purposes comes later therefore the strategy and plan which an organization formulize or adopt should be formed in such a way that it could possibly resolve the probable problems which could be caused because of variables, factors, elements, environment of markets and uncontrollable variables (includes competitor's actions, government policies, general economic conditions and so on) and the strategy could possibly be anti of these hindrances or problems.

That good strategy formulation is not the possible solution of the problems/hindrances which an organization faces, in fact the actual solution is the implementation of that strategy in its letters and spirits and in the manner it was purposed to be implemented and if any lackness found at any stage later on then the strategy should be reviewed and the required or supposed changes should be re-implemented till all the possibilities of lackness should be removed from the strategy and the corporate strategic planning objectives as well as the organizational objectives would be achieved. The process is continual and could be reviewed and restarted at any stage.

WHAT IS MEASURING AND CONTROLLING OF CORPORATE STRATEGIC PERFORMANCE?

Performance dimension frameworks should not survive in separation of performance management techniques and improvement initiatives but develop procedures that reflect the desires and aims of the proposal (Ballantine and Brignall 1994). It is the boundary between dimension, administration and leadership that is crucial in ensuring that performance measures drive value creation. Interaction is a central gravity in integrating performance measurement with performance management and is placed at the core of the performance management solution described in the following paragraphs. Even though the approach offered addresses the criteria of performance measurement it is also a method for identifying, communicating, improving and reporting value and for this reason represents a performance management solution.

RECOMMENDATIONS FOR MEASURING AND CONTROLLING CORPORATE STRATEGIC PERFORMANCE:

Strategic corporate planning is creative process which creates strategies to develop plans, implement the same by allocation of the organization's resources for defeating the predictive possibilities of hindrances to achieve the organizational objective for a specific timeframe. For performance dimension and performance management to be successful they both need to drive value formation to meet the needs of stakeholders and generate attraction both for the stakeholder and the interest groups. If they are not putting value then they are misdirected and energy and effort is being wasted. Strategies are formed on the basis of considerable research which the managing department of the organization perform and made heavy expenses upon to evaluate the possibilities of threats in the future by considering the efficiency and effectiveness of the previous strategy. Before an organization can review and develop its performance measures it needs to understand the value outcomes that it is trying to create which are influenced by the needs of its stakeholders. It is a erroneous belief that performance measures should be directly derived from strategy. Rather the desired value outcomes and measures of these are derived from stakeholder and organizational needs. Price mapping is a second generation performance dimension and performance management approach that avoids many of the weaknesses of existing frameworks. Understood in the language of cost and using visual symbolic maps to integrate and represent the most useful performance procedures it can help to overcome management and employee disenfranchisement with performance measures and performance management.

CONTEMPORARY ISSUES:

Regardless of comprehensive policy actions, Economic strains remain severe, pulling down the real economy. A constant economic recovery will not be feasible until the financial sector's functionality is restored and credit markets are unclogged. For this reason, new strategy initiatives are needed to produce realistic loan loss acknowledgment; sort economic companies according to their medium-run feasibility; and offer community support to feasible institutions by injecting funds and figure out bad resources. Financial and economic policies need to become even more helpful of collective demand and sustain this stance over the foreseeable future, while developing strategies to ensure long-term fiscal sustainability. Furthermore, global cooperation will be serious in designing and implementing these policies. The constant revolution in the global market, joined with scientific progress, has been growing commercial and economic interdependence between countries, in current years. A number of aspects of this interdependence are tremendously positive, as the globe becomes more integrated and begins to take combined action on several issues. Whole world's economy is suffering from many kinds of contemporary issues which are:

Financial Crisis

Economic imbalances and the future aspects

Financing Reforms

Monetary integration

Trade development: multilateralism, regionalism and preferential trading agreements

The development gap: foreign aid and debt relief

International terrorism

Instead of a lot of attractive opportunities, so many factors are seriously threaten to the economic growth which is directly affecting the economy and indirectly affecting the business and are increasingly unstable world environment strewn with geopolitical, economic, social and cultural conflicts. Technological, competitive, social, political and economic impacts create a climate of uncertainty, and diminish the growth of consumer markets. Investments in the corporate sector due to these contemporary issues are decreasing and the trend of new industry is vanishing because of international terror threat.

FUTURE CHALLENGES AFFECTING CORPORATE STRATEGIC PLANNING:

Globalization introduces positive and negative forces into organization's external Environment and their impacts represent sources of threats and opportunities for their businesses. Knowledge to deal with both pressure and opportunities, according to Bertrand and Azevedo (2001) [3], is essential to enable corporations which are transforming themselves into international ones, to take full benefit of these changes, and neutralize pressure to global business strategic management. Social and cultural questions, as well as geopolitical and economic conflicts, with the wars and terrorist acts caused by the lack of understanding between peoples and cultural and religious intolerance, also pose a challenge to corporations in their quest for new markets.

Challenges affecting the corporate sector are different in different countries because the economy of all the countries is not same and the living, culture, religion, economic demands, inflation, deflation, uncertainty due to government policies, terrorism, environment and so on are different from other countries therefore, the challenges of all the countries but out of which few are same just as international inflations and deflations, economic environment, terrorism and threats from other countries or rivals and etc. Globalization opens up numerous opportunities for organizations, such as access to numerous markets, new income, information and technologies, thus enabling them to improve their competitiveness. At the same time, though, their actions are under severe threat in an environment of growing world instability caused by geopolitical and social conflicts, jointly with financial and economic risks. Additionally, the solidification of an disturbed global economic system is itself one of the main sources of conflicts and risks.

CONCLUSION:

All the organization are formed with the primary objective of earning profits by satisfying the consumer demands through leading the market environment by offering attractive offers in respect of its product mix range of low cost product but high quality benefits. This all could be possible when the organization utilize its internal resources and its competitive advantage by forming a good systematic corporate strategic planning which in the sense proved to be a good decision/strategy from the management of the industry. A comprehensive strategy could only be formulate, if the planning which is a creative process of summing up information regarding the probable efficiencies/deficiencies of the existing strategy is properly assessed and the new strategy should be comprehensive and enables the organization to defeat the all kind of future uncertainties. Risk of failure of strategy reduces when the strategy is properly formed and implementation of the same should be proper and threshold be monitored during the projected timeframe of it till the projected objectives achievement within a particular time.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.