Strategic Planning Can Become A Growth Strategy Commerce Essay

Published: Last Edited:

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

Often, it is happened that higher management team assigned selected strategies to key personnel and left it to the individual to carry out the task. While most organizations operate with minimum resources, it often ends up work overloaded by individual.

Execution Review

One of the major key success factors for an effective strategy deployment is constant review of its progress and makes decision for any deviations to plan because strategy deployment demands continuous improvement. It is important to decide what to review and with who the review is done. New decision may be required as the status of the strategies progressed.

In summary: Follow this steps in Strategic Planning will ensure various options are considered including its execution, resource allocation and Execution Review. This 7-Steps form a complete cycle for new or existing Strategic Planning initiatives

Strategic Planning can become a growth strategy

Cost cutting was most common or conspicuous subject in those organization which dealt In healthcare segments throughout the country but this is past, no doubt through this strategy many goals have achieved by cutting cost but this strategy was not on rational bases, so due to this irrational approach companies realize that through this strategy they cannot sustain and enhance the future profitability. We can say healthcare was the start of precise meaning and performing of growth strategies for this purpose of to get best revenue and specialized opinion. Business is name of continuous practice with customers so through this business practice lot of organization are investing money in such kind of significant strategies which can helpful for organization to gain the customer's loyalty and trust but this exercise demand continues deliver and meet the expectation of customer and this task is not an easy job because its depends on organization's team skills and competency, which can helpful to meet the customer demands.

This is also a great challenge in healthcare segment to make distinction to determine the worth of their services which they are providing to their customers but When your organization achieve this skill level, it is critical to your continues success.

Don't Bother with another New Strategy

You can recall your fresh visit of shopping of healthcare and which store attract you for shopping or you want to go over that shop again and again, every one wants to do business again. Every customer of healthcare organization evaluate yours organization because all customers have some specific standards which we experience in our daily routine, in healthcare there are some world standards which helpful to evaluate the standards against the services, product, stores and dealing of the staff. There are common three natural factors of enhancement in retail business which are essential in consistent growth. These are offering, selection of appropriate persons and availability of continuing instructions to the staff which make them eligible to become a part of organizational success. Yet, due to some constraints which cause lack of strategy, these constraints are limited budget, labor shortage and some other unavoidable factors which directly effect the enhancement and development.

In these days healthcare segment is facing a lot of challenges for their existence and growth for this purpose its becomes most important for those organizations who are dealing in healthcare surroundings to hire appropriate persons along with proper guidance for development because this is essential part for any organization's growth. You have to create the awareness of your basic cause of your organization in your team, so that they can struggle to achieve that goal which is your customers and stakeholder's satisfaction. It would be done when yours employees will keep focus on proactive approach with customers but this is tough task but not impossible.

Before bringing any change in your strategy you must focus on review, yes review on your current organizational strategy, which will help you to sort out the fundamental problems that are creating hazards in your growth? After sorting the problems you need to make them correct as per basic parameter of new strategy. During the development of tactical plan you have to decide that weather you want to adapt or focus on integration of staff and service oriented strategy or customer oriented. When you are in transit face of strategy the difficult task is to implementation or adaptation and on first hand this transit face should be adapted by top management, once the top management has adapted this change the remaining part of the its implementation will become more easy through lower management and worker, because the success of any strategy involvement of the team which is key point of success of strategy.

Plan should be the first step of the strategy: Firstly, Plan your strategy area means in which area you want to move forward, If you have choose that your growth strategy would be customized and your services will focus on understanding the customer's needs and requirement then you have to focus on to develop these abilities which can help you in demonstrating your organization's abilities to meet them. To achieve the level of your customer satisfaction you need to develop a complete system which will deliver your employees and for this purpose you need to develop a skills development program for your employees which will helpful in your organizational growth.

Involvement can be a part of your growth: This is a reality that no one organization can be successful without involvement of their worker at any level of responsibility. Success of strategy based on involvement and engagement of workers along with strict follow up and accountability because absence of these elements can be a part of failure of good strategy. To achieve this task an organization needs a experience and expert manager who has such kind of capabilities which can make it easy for employees to get customer loyalty and retention weather within or outside the organization. Being a senior manager there are lot of responsibility on their shoulder along with skills development of workers, strategy development again being a senior member of the team you have much more responsibility than your juniors, along with other responsibilities you have to spend more time on customer account development not just rely on your juniors, you must have a keen eyes on yours worker's performance in the field along with continuous education. If you have experienced workers then you have to avail this opportunity as a mentor that pairs the junior worker with successful experienced worker but if you have limited human resource then you can get the training facility of your staff through outsourcing way on continuous form. It could be form of face -to-face, one-on-one time in the field with your team and customers.

Evaluation and recompense: To make successful any organizational strategy, it is most important for organizational management and HR department to develop such strategies for employees which should be recompense along with evaluation but this system should be on truly rational bases, so that every employee tries his level best to win this reward or recompense through his best efforts. This program should be the part of employee's training development program because this strategy will helpful for organization to involve the employee in strategy and will prevent their lake of interest in work which will effect directly or indirectly ultimately organizational growth. Evaluation and recompense strategy can be beneficial in organizational growth along with cost management and appropriate productivity but you must have focus on customer retention. But this would be done with initiatives close customer contact and matchless services. It will achieved by painful follow up and strict accountability for customer retention and success. In spite the fact that sometimes difficult to evaluate the accurate results but it can be helpful for growth and customer retention.

The final outcome of the process:

This is a fact with the passage of time when organizational revenue are getting increase it becomes company responsibility to focus on customer's satisfaction if they want their positive image in customer 's mind. This is right time to focus on main business and the customer. Those organizations which are successful in their business always pay attention on such planning which is directly related retention of customer and efficient staff who can convey your continuous message along with something gaining. These could be your staff, physicians, consumer or any one. Skills development of staff and implementation is a core of the growth strategy. Which will ensure your growth, market grip and revenue.

Nature's lack of consistency shows its practical research in the relationship between strategic planning and organization's performance is the basic objective for control this study. Under this situation this question arise that whether strategic planning make up has been the subject of various practical investigations over the past three decades. A significant structure of practical research has accumulated, which tries to make it clear the connection between strategic planning and organizational performance. Surprisingly, there is as yet no consensus as to whether strategic planning plays a vital role on organizational performance. Rather, the results of this research are still split and lack of consistency. A numerous studies show this relationship which indicate that strategic planning make up, and that which organizations were using traditional strategic planning significantly exceed those that do not.

A literature review indicates that western style organizations have shown strong and consistent bias in numerous researches, especially very few researches is available in U.S and Western Europe that investigate the relationship between the strategic planning and organizational performance in different style especially developing and emergent markets. Therefore, these markets provide important information of this question whether a same style of this relationship dominate across numerous context. The basic objective of this research is to explore new evidence from Jordan, an emerging market context. The purpose of this research is to explore the relationship between strategic planning and firm performance in Jordanian Manufacturing Organizations (JMOs). Another more significant contribution of this paper is related to the measurement of organizational performance. Most of the previous research has exclusively focused on financial indicators of organizational performance. This limited formulation of the idea of organizational performance creates the limitation of our ability to find out the strategic planning impact on other parts of performance like behavioral indicators. So under this situation we need a broader view to enhance our understanding of this idea. In this research we find out the impact of strategic planning on both aspect financial and behavioral measures of organizational performance. So we are selected four indicators to analysis the behavioral action of organizations. in this research we include adaptability, job satisfaction, attractiveness, and retention ability of the organization. For the satisfaction of basic objective of this research it is divided into four parts. In the first part of research, we review the relevant literature, which provides a theoretical and conceptual framework for developing the hypotheses. The second part describes the data collection, operationalization of variables and statistical issues. Empirical results are presented in the third section. Finally, research findings are discussed and summarized and implications are suggested for both future research and practice.

Despite the large volume of research that has collected over the past three decades to clarify the form, strength and direction of the relationship between strategic planning and organizational performance, very little researcher can be said with cognitive state about this relationship. This inconsistent and infuriating nature of empirical research findings presented insofar encourages researchers to examine this relationship of strategic planning and organizational performance in different environment.

Strategic planning can be Helpful to make hard decisions

We supposed that business entrepreneur or /leaders are to be able to make the "tough" decisions. No doubt it is job description of both. We have our limitations because we are still human. We make tough decisions because don't know the consequences of these decisions. Might be we made these decisions in a good sense but we are not sure about its effects on others. And that's where a Strategic Planning provide helps you in making those tough decisions.

Any organization which wants clarity of its ultimate goals that goes through a strategic planning to gains clarity, Clarity of the direction needed to be taken. Clarity on exactly who needs to do what. And finally, clarity should be on all kind support which is needed to achieve the goals. To accomplish your goals you will look at your resources, your facilities, your processes and your people. You will take a hard look on what will support your plan, what changes need to be made to achieve the plan and what just doesn't fit. So let's focus on the last one.

Let's say you are a business owner. You have an employee that is doing an ok job. That's it, just ok. They don't particularly put themselves out, but they do show up, do what they are told to do and while they may not excite the customer, they don't get them mad. So they're ok. But you really, really would like someone a bit more energized and focused. Sound familiar?

The problem is that since they are doing an ok job, you don't feel that you can do anything about it. Enter the strategic plan. After going through the plan, now you look at that employee with greater clarity. When it was ok to get through the day, the employee was acceptable. Now that you have a plan to take your company to a new level of success, it becomes glaringly clear that this employee won't be an asset in achieving that, but will actually be an impediment to the plan and business succeeding. Things have become clearer. Something must change.

That change is your decision. That may not mean you need to get rid of that employee. But you do need to take a long, hard look. It could be that you need to have an honest conversation on the new direction of the business and whether the employee wants to fit into it, along with the things they would have to change. It may mean training. It may mean changing your relationship to get that employee on board. There are alternatives then just firing them. The bottom line is that for the new plan for the business to succeed, everyone must be on board, and resources like that employee will need to change. Period. Clarity.

This is only one example. But it all centers on ensuring that all the right resources are in the right place to ensure the success of the strategic plan and yes, that means change.

Resources, whether they are facilities, equipment, or employees need to be aligned with the company's strategic plan. Each element is part of a whole working in the same direction to ensure the plans and organization's vision and goals.

Think of the image of one of those rowing teams, oars aligned and together pushing the boat further in the right direction. Now envision one oar sitting in the water causing a drag. At minimum, it would force everyone else to compensate and work harder, more likely it would be far more disruptive resulting in chaos and failure. So it is with a resource that is not aligned with your organization's direction. Creating a drag, causing more work, possibly resulting in failure.

By understanding where you want to go and what you need to do to get there, you bring clarity over those hard decisions that you need to make. And while they may be difficult actions to take, you have a much greater understanding of both the rewards and the consequences of taking that positive action for the good of your business.

Get big enough to source innovation: to grow in the high-risk pharmaceutical industry

Eli Lilly is one of the leading multinational pharmaceutical companies which believe on that to overcome the pharmaceutical market innovation and consistent research is a lethal weapon but they also know this is not an easy business due to increase expense on future research along with maintaining the earning with stakeholders expectation. Eli Lilly knows that it can be happen only when they will adopt continues and never ending process. In this competitive era where every organization is seeking the way to get marketing advantage over others through innovation so it has become more difficult to retain edge over other competitors for Lilly and when the internal Research & Development department will not generate enough innovation to meet the future growth demands, many industry participants pursue external sources, then it became more difficult for Lilly that what we believe makes different from most of its contemporary is that it has pursued a such collaborative strategy which can give a "innovation leverage" over others in shape of merger and acquisition approaches. With the right critical mass internally, Lilly aims to build truly win-win relationships with other innovation leaders and maintain a reputation of "Partner of Choice."

The Situation

For better understanding that why Lilly adapt this path to makes the most sense. Let's start to understand this situation which is facing all pharmaceutical companies in currant scenario. The drug invention business is one of high risk. Less than 1 percent of drug invention efforts will result in a commercial product. Those that succeed will take 10 to 15 years to reach the market, and it's an average invested cost of nearly $0.5 billion. Which make it complicated with the fact that only three out of ten products produce a profit and you can better understand that why shareholders expect a high return for this level of risk. Investors demand total shareholder returns on the order of 18-20 percent annually.

Growth through Innovation Access

Lilly's thinking is based on the presumption that there are certain limits in a company's size beyond which innovation is not scalable but company wants a big break through at each stage of the value chain for certain constant innovation and enhance the inventions, development and commercialization. But despite of these activities, Lilly become fail to improve productivity.

A big critical opinion develop in Lilly, it has many options to acquire more "capacity," if it needs it. They include:

Develop the capacity of process and technology or commercially potential products and which can give the boost the company and it should be low cast product. In this scenario the risk is relatively low.

Company decided that when timing is critical, then they have to adopt rent policy through partnering in that areas where there are high barriers to entry, or when it is facing technological barriers in shape of obsolescence and competition in a critical part of its business, or when it wants to "share"--risks.

Under this solution, company can decide that to sell the "it" (the product, process, capability, or technology) when its sales going to decline in value or units wise at that time when critical mass approach was developing in stakeholders, for getting rid of this thinking the company wants to monetize the asset, or where the "it" is a non-core asset.

Moreover, the company decisions at every stage in the value chain: discovery, development and commercialization. At one time, the industry assumed the decision point for build-buy-rent decisions was only at the early, discovery stage. In this industry companies assumed that the costs for "renting" that is, partnering--at the later stages of development and commercialization would be prohibitive.

Company also considering that if they make any other partner for product developmental cycle and cost may be less than any other molecule which is their own development, and the increase in flexibility usually more than outweighs the costs. The analysis is especially compelling when a company following the "critical mass" approach compares the costs of late-stage partnering to the costs of innovation incurred by competitors that are following the "merger" strategy. The critical mass company's costs to rent are far less than the merger company's costs to build--even late in the development cycle. Late-stage renting, or partnering, is especially useful for:

To meet with the near-term growth objectives.

To overcome the drops in the pipeline.

To Secure and retain positioning in a new product category.

Meeting the needs in the portfolio for a product to complement existing products.

Meeting the challenge of an expiring patent on a blockbuster drug.

Then a big question was rising that Is the second approach building to critical mass and strategically sourcing what else a company needs, to keeping the pipeline full through partnerships, is more effective than the merger approach? The experience at Lilly suggests that it is.

This strategy enabled Lilly to launch six new products between 1995 and 1999, representing $5 billion in current sales--and which the company expects to generate growth for a number of years. Moreover, the company will launch two important products in 2001--and as many as eight more in the next three years.

With these achievements, Lilly will become the first in its industry to manage the patent expiration of a blockbuster drug without resorting to M&A. Clearly, Lilly is getting competitive advantage from its approach to growing internally enough to achieve critical mass and then "renting" and partnering to obtain additional capabilities and assets.