Strategic Planning - Essay Example

?Running Head: Strategic Planning Strategic Planning [Institute’s Strategic Planning Introduction Strategic Planning and management is essential for every organization and business. Every organization has to plan its future strategy and mould it according to consumer trends, demand, expectations, and competitor’s strategies. It is the manager’s responsibility to ensure that the strategic planning of the firm is consistent with the needs of the market and the future expectations of demand from the consumer. The difference between strategic planning and planning is accounting for competitor trends and future demand and planning a strategy that is consistent with it. Hence, strategic planning incorporates devising a strategy according to the future or present strategies of your competitors and customers and strategically placing yourself in a desirable position (Plesk, 1997). Strategic management is somewhat similar to strategic planning yet it is more present focused rather than only future oriented. It involves the proper allocation of resources and their utilization, setting of objectives and aims for the firm, and incorporating the firm’s vision, mission, and future goals. However, strategic management is not only based upon devising policies and objectives, but involves the implementation of these policies and objectives according to the needs of the external environment (Goldstein, 1993). Discussion While it is very important for any business to plan, strategize, and implement its goals, policies, and objectives, it is just as important for institutions such as schools. Education is a highly competitive business sector in current times and in order to succeed and survive in this sector, strategic management and planning is just as essential as any other market (Whittington, 2007). The educational sector also has to focus upon competitors’ strategies, efficiency of resources, maintaining costs, and providing a high quality service. One of the most important parts of strategic management for schools is maintaining personnel and qualified teaching staff as well as maintaining an appropriate curriculum according to the standards expected by their consumers and the standard maintained by their competitors (Rosenhead, 1998). Moreover, there are several other decisions to take such as appropriate and easily accessible location, safety standards, keeping costs to a minimum while providing a fully equipped infrastructure, proper curriculum, and fair/proper examination standards. While improving a defective product and maintaining quality standards may be difficult in tangible products, however they are even more difficult to maintain in intangible services such as education. Customer satisfaction is difficult to measure and change of policies or strategies relative to competition is not as quick as in other regular businesses (Kalpic, 2002). There are various approaches or theories to strategic management which include the structured approach in which a manager who is usually operating a large global organization takes into account the opinions and needs of its stakeholders. The second approach is the entrepreneurial approach which involves the business setting its own standards and objectives and following them throughout their operations instead of focusing upon the views of their stakeholders (Plesk, 1997). The structured approach is usually followed by large organizations which exist all over the world and are international entities. The entrepreneurial approach is followed by smaller organizations which exist in limited places and have access to limited or restricted means. Hence, they are not able to easily follow the needs of their stakeholders and constantly innovate to cater to their requirements. These firms simply set their own objectives by analyzing the competition and developing a fair view of what the consumers need or prefer. They then focus on strategy formation and implementation rather than constant survey and analysis of market needs (Raduan, 2009). Extraordinary management theory refers to the handling of situations in a state of chaos or disorganization. In such cases, a manager has to show exemplary abilities or extraordinary management skills in order to handle the situation. This may be in the form of a business crisis when the share price of a firm is falling drastically or there is a threat of a competitor takeover, etc. There can be various states of chaos in a business in which it is the manager’s responsibility to return operations back to order and manage the situation in a feasible and efficient manner (Halpin & Hanlon, 2008) A shadow system approach is using informal links and ties to run the business environment. Although it may not be visible, but it is has a large impact upon the running of organizations as informal relationships and opinions are used to function the business. All businesses have a formal and informal network. The shadow systems approach follows the informal network and hence, informal ties and back room discussions have a great impact upon business decisions (Edward, 1984). In the case of a higher secondary school such as Kofstede High School, it is highly essential for a manager or the directors to make appropriate management decisions to ensure that the students are provided with high quality education. Hence, strategic planning and management is one of the most important factors that will continuously attract students to attend Kofstede High School. While beginning the process of strategic planning, the manager must first decide which segment they want to cater to. Like any other product, education is also segmented into different categories according to gender, age, social status, religion, income level, and geographical region, etc; After conducting a proper analysis of the market, Kofstede High School has decided to cater to the middle income segment of the market as they are not charging a premium price for education, but are keeping it at a level which ensures the covering of costs at the least. Some of the major decisions that the manager has to take as mentioned above are the setting of safety procedures, proper examination methods, an updated curriculum, and the recruitment of staff. Moreover, they also have to develop marketing strategies or develop an appropriate image which will attract students towards attending Kofstede High School. Kofstede’s managers usually manage this by updating their website regularly and attending educational events in order to maintain the popularity of their school. Mangers also rely in word-of-mouth and school reviews which rank schools according to the quality of education they provide to maintain their market share. In the strategic planning process, managers must decide the number of staff they require and the qualifications they should have. Moreover, issues such as pay of teachers and their working hours and duties also have to be analyzed. Kofstede aims to ensure that their teachers are well-learned in the latest teaching methods and are capable of delivering a message across to students. Kofstede ensures teach training and has regular workshops in order to enhance the skills of their staff. In the strategic planning stage, Kofstede also plans on the curriculum that will be taught to students and the price that will be charged. Other decisions require what will be included in the package and what additional facilities can be provided to students free of charge such as transport services, library usage, extra workshops, events, and other facilities. Moreover, the managers must ensure that all of their curriculum is updated and provides an all rounded education as competitors do. This may incorporate extra lessons such as Music, Drama, Arts, Sports, and other activities that students must be given an equal opportunity to. Kofstede manages to provide students with all required subjects and has an array of additional subjects or optional courses offered which include Arts & Crafts, Acting classes, Health & Nutrition, Religious Studies, and many more. It aims to provide them at minimum cost, optimizing the benefit to the student. Kofstede’s managers must also be aware of charging a high price for its services because most of their students do not belong to overly privileged households and will not be able to afford lavish services. Hence, they have to ensure that their fees are properly consistent with their competition and the needs of their potential market. Other decisions managers have to make are related to the level of technology under utilization. Kofstede manages to equip itself with the latest technology in some areas of study such as laboratories and computer labs and students have access to these facilities although it is limited. Managers must also set policies for absenteeism, late fee submission, disciplinary issues, security, transport, and many other issues pertaining to the provision of education. Education is a high involvement and a high priority product, hence it is essential to please consumers and provide a high quality service at all times. Moreover, it is more difficult to follow market trends as policies and curriculum cannot be changed immediately (Priem, 2001). However, with the proper market research, changes can be made gradually. Kofstede became aware that students were not satisfied with the examination system and felt that it was too burdensome. Although it took a while to fix this problem and there were frequent board meetings discussing the issue, the issue was resolved and a new program was set up for the students enabling them to sit examinations in two parts instead of one. In order to implement these strategies, management had to devise a proper system that was based on consolidation and cooperation of the whole staff. In order to influence behavior of staff, shadow systems were used in which informal relationships between boss and employee would benefit the functionality and operations of the institution (Priem, 2001). When there was a proper environment of trust, confidence, and loyalty amongst the staff and motivation levels were high, every other element fell in place automatically. Kofstede also welcomes student suggestions and staff suggestions in the running of the institution. They do not only believe in a hierarchical structure, but would like informal networks to assist in the proper management of the school. Extraordinary management skills are needed in an educational environment in times of safety threats to the school or students or when the education commission makes a sudden change in curriculum or regulations that has to immediately be catered to. Kofstede had to incorporate such extraordinary management skills in times of such chaos when there were accidents in school or a child got seriously injured when on the school premises. Moreover, issues such as drug abuse, use of alcohol and cigarettes on campus call for strict disciplinary action. Kofstede had to train its staff in order for them to be aware of the best methods to deal with such issues (Priem, 2001). In addition, Kofstede has to ensure that it provides a comfortable environment for its students and is appropriate for a proper learning experience. Maintaining such an environment does not only mean providing students with properly equipped premises, but it has to be large enough to facilitate student activities and student leisure. The environment inside the school also has to be maintained to a professional extent in order to ensure that students are benefiting from an exhilarating experience instead of being exposed to a negative environment. Hence, Kofstede is employing an entrepreneurial management approach. It is a fairly small institute operating in only five towns and cannot keep all stakeholders interests at heart when incorporating policies. The education sector is not highly flexible and cannot adopt a high degree of innovation in its service (Whittington, 2007). Mainly, it has to keep itself strategically aligned with its competitors and ensure that it is meeting all regulations and keeping its customers happy. Education sector managers usually follow an approach of strategy formulation, strategy implementation, and then strategy evaluation. It takes them time to review their strategies and form new ones if the previous ones are failing. Usually, new admission policies are incorporated in the next school year as with Kofstede (Whittington, 2007). The education sector is a very sensitive yet profitable sector of business. While the quality of the service has to be high, there is less room for managerial mistakes. Moreover, there is also less room for maintaining a competitive advantage and most of this depends on the motivation level and efficiency of staff amongst other things. The absence of innovation and other development tasks makes it all the more essential for management of schools to have extraordinary skills and be highly competent. Without careful consideration of the policies devised and the image that is created for a school, the venture may never have a second chance to enhance its image. Since the purchase of education is a high priority and high involvement product, consumers are not willing or even able to give providers a second chance. References Edward, F. (1984). Strategic Management; A Stakeholder Approach. Business Administration, pp. 31-60. Goldstein, L. D. (1993). Applied Startegic Planning; A Comprehensive Guide. McGraw Hill. Halpin, C., & Hanlon, P. (2008). Interaction of the Legitimate System and the Shadow System in Orgnaizations. Irish Academy of management. Kalpic, B. (2002). Strategy Management Theory and Application. Diversus. Plesk, P. E. (1997). Some Emerging principles for Managers of Complex Adaptive Systems. Paul E. Plesk & Associates. Priem, R. (2001). “Is the Resource-based View a Useful Perspective for Strategic Management Research.” The Academy of Management Review, pp. 22-40. 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