Social Responsibility and Strategic Planning - Coursework Example

Running Head: STRATEGIC PLANNING Strategic planning Name Institution Date Strategic planning Strategic planning is the well established process that is meant to determine a given company’s goals targeted in the long term and the subsequent identification of the best approaches to be applied in the event of achieving these goals. In strategic planning the strengths of the business is matched to the available opportunities. In the traditional context, corporate planning was reserved entirely to the top management in the particular organization, firms offering consulting services, or by central planning departments. Central planning departments refer to grouping of planning experts that are accountable to the chief executive officer or the president of the company. This approach was commonly used during the 1970s. Planning experts were hired to develop well outlined strategic plans for the organization as a whole. These strategic plans were drawn from the data gathered by these experts. This particular planning approach was top down since plans and goals were assigned to major departments and divisions from then particular planning department after being approved by the chief executive or the president of the specific organization. This approach worked effectively in a number of applications (Samson & Daft, (2005). Despite traditional approaches being popular to some companies, they are being viewed as inappropriate in the current fast-paced environment. Central planning departments may not augur well with the ever changing realities encountered by employees and frontline managers, which may render some people to be struggling to catch up or understand a plan that is out of touch with the customer needs and the prevailing environment. Moreover dictated formal plans by central planning departments and top managers hinder learning and innovation since employees are left with little motivation to think for themselves and develop new ideas. Creative is discouraged. Leaving employees and front line managers to come up with their own ideas on planning is a great ingredient towards creativity. Sticking to one particular approach to planning may not make the organization to survive the tide during perilous times (Muñoz & Katsioloudes 2006). Modern strategic planning approaches have been devised to cope with the ever changing business environment and the consumers and customers becoming more and more demanding. Some of the strategic planning approaches availed are as follows; Basic strategic planning This apparently basic process is widely adhered to by organizations that are busy, small and have not engaged in vigorously strategic planning previously. The process can be implemented in the first year before hitting the break even stage in order to get a glimpse of how planning is carried out. This is embellished in the years that follow involving more planning activities and phases to make sure a well-rounded direction is achieved during this breakeven period. In this case planning like in the traditional approaches is carried out by the top management. Lanham (2010) notes that the basic management process involves the following; step one is the identification of the mission statement-This is the specific statement that outlines why a particular organization exists, that is, its purpose of existence. The statement must outline the needs of the client that should be met and the kind of services that will aid in their provision. The top management should agree and develop the given mission statement. The mission statement may be subject to change over time. Selection of goals These are the goals that the organization must meet in order to accomplish its mission of existence. The goals are the general statements concerning what should be accomplished in order to meet the mission of existence and deal with the issues affecting the organization. Identification of specific strategies or approaches to be used to attained the defined goals- The strategies are often drawn from what changes the most in the organization as it carries out more strategic planning. In this phase the internal and external environment are thoroughly examined in the organization. Identifications of specific approaches for the implementation of every strategy- These refer to the defined activities that every major function has to carry out to make sure that each strategy is successfully being implemented. The wording of each objective should be very clear to an extent that an assessment can be carried to determine if the objectives have been met or not. Update and monitor the plan Efficient planners from time to time reflect on the effectiveness of attainment of goals and whether or not the recommended action plans are being implemented. The most efficient determinant of success is the positive feedback from the customers of the organization. Goal oriented or issue based planning According to Metaxas (2009), organizations that commence with the basic planning approach outlined above more often than not will fall into utilizing more effective and more comprehensive type of planning. In this approach an organization will follow the following basic steps; first the internal external environments are assessed to identify strengths, weaknesses, opportunities, and the threats facing the organization. Secondly a strategic analysis is carried to determine and prioritize the main issues or goals. Thirdly major strategies are designed to address the goals or issues. In the fourth step the mission, visions and values are updated or designed. In the fifth step Action pans are established. These encompass resource needs, roles, responsibilities for implementation and the organization’s objectives. In the sixth step goals, issues, strategies, updated vision and mission, and the action plans are recorded and the SWOT analysis duly attached. In the seventh step the yearly operating plan document is developed. In the eighth step the first year budget is developed and authorized. In step nine the organization’s first year operations are conducted. In the final tenth step the strategic plan document is monitored, evaluated, reviewed, and updated (Werther& Chandler, 2010). Alignment approach The general aim this approach is to make sure there is a strong alignment between the organization’s missions and the available resources to ensure the effective operation of the organization. This model is essential to those organizations that require the fine-tuning of strategies or establish the reason behind their ineffectiveness. The general steps include; first the planning group outlines the organization’s programs, mission, needed support and resources. In the second step what ever is working well and what needs adjustment is identified. In the third step identification of how these adjustments should be made. In the final fourth step the adjustments are included as strategies in the strategic plan (Lanham, 2010). Scenario planning This approach may be used in collaboration with other approaches to make sure planners in the true sense undertake strategic thinking. The approach may be useful particularly in the identification of strategic goals and issues. In the first step in this approach several external forces are selected and related changes imagined which may affect the organization for example changes in demographic. Secondly for every change in force future different scenarios are discussed which may arise in the organization owing to every change. In the third step whatever action the organization should take should be suggested in each of the outlined scenarios. In the fourth step planners eventually are able to detect or sense common strategies or considerations that should be addressed to cater for any external changes. In the final fifth step the external change that is most likely to affect the organization is selected in the subsequent years and the strategies that are most reasonable are selected that the organization can utilize to effectively deal with the change (Samson & Daft , 2005). Organic or self-organizing planning Strategic planning processes that are traditional are sometimes referred to as ‘linear’ or ‘mechanistic’, in that they are cause-and-effect or general-to-specific in nature. Another perspective of planning is much similar to an organism development hence called self-organizing or organic process. Self-organizing needs reference to common values that is continuous, dialoguing on these values, and sharing reflection around the systems prevailing process. The first step is the articulation and clarification of the cultural values of the organization using story-boarding and dialogue techniques (Werther & Chandler, 2010). Secondly the vision of the group for the organization is articulated using the techniques in the first step. Thirdly it is required on a continuous basis to dialogue, at an interval of a quarter, on what processes are needed to arrive at the vision and what is going to be done by the group concerning the processes. In the fourth step the specific group should learn to conduct its own clarification of values. In the fifth step the group is required to be extremely patient. In the sixth step more emphasis is put on learning more than the method itself. In the final seventh step the group should be asked to reflect on how the organization will show its strategic plan to stakeholders who more often will be expecting the mechanistic formats (Muñoz & Katsioloudes, 2006). Social responsibility Social responsibility is an ethical theory or ideology that a given entity, an individual or an organization, is obliged to act the benefit of the entire society within its context. Social responsibility means that the particular entity has the welfare of the society represented by the surrounding environment at heart. Despite the business entity going for the main objective which is to make profit, it ensures its activity does not have negative impacts to the surrounding g community. For instance, if it is a manufacturing company it ensures that it minimizes pollution and all the waste from the company is disposed in a safe way that is not harmful to the community around. If there are any roads being used by the company vehicles they should be repaired without assistance from elsewhere Metaxas (2009). Bridges should be made to enhance transport of products. In so doing, the neighboring community also benefits from the existence of the company and can eventually identify with it. In some circumstances when it comes to employment in the company the natives of the neighbouring community are preferred to create a friendlily atmosphere between them and the company. Some companies build schools within their precinct and allow children of neighbouring non-workers to join them. Other companies also go as far as building hospitals. Increased social responsibility ensures that the company gets enough support from the neighbouring community that is part of the large society. In branding its products a company may choose to use local names so that it penetrates the local market because the local consumer can indentify with the products of this particular company. In recent times some companies also organize workshops or seminars to sensitize the members of the public about its existence and provide an opportunity to the members of the public to suggest ways of improving the relationship with the company. Social responsibility is important because firstly it enables the company to get the backing of the surrounding community. References Metaxas, T. (2009). Place Marketing, Strategic Planning and Competitiveness: The Case of MaltaEuropean Planning Studies. Abingdon: Sep 2009. Vol. 17, Iss. 9; p. 1357 Lanham, T. (2010). Development of Strategic Plan . Federal Government Documents and Publications.: Dec 23, 2010. Vol. 23 Iss 5; p. 231. Samson, D & Daft, R L. (2005). Management, 3rd ed. Australia: Thomson. Muñoz, J. M. S. ,& Katsioloudes, M. I. (2006). Winning across borders: executive perceptions on globalization. Ney York: American Book Pub. Werther, W. B. & Chandler D. (2010). Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. NY: SAGE. Read More