Strategic Management and Planning - Essay Example

of Business: JDs Way of Life Products & Services Personal collections, body and health items, educational training CDs, support services for computers. Strategic Management and Planning Strategic management and planning is the process of developing an approach for managing a business and using this approach to enhance the accomplishment of business goals. It is usually aimed at accomplishing and preserving competitiveness in a business. All features of the organization are incorporated in the utilization of the business strategy through strategic management and planning. It is concerned with the evaluation of the environment in which the business operates in order to understand the best actions that can assist in accomplishing the organization’s long term objectives and mission (Nolan, Goodstein and Goodstein 2008). Importance of a Strategic Plan The strategic plan acts as the basis for the organization’s activities. It is important for successful operations for the business. Development of the techniques for management is usually based on the strategic plan. In the products and services business, the strategic plan will assist in maintaining competitiveness in spite of the existing competition. This is because all the actions will be carried out after a careful analysis carried out while developing a strategic plan. It sets out direction for the business in regard to accomplishment of business goals. It helps in allocating the available resources effectively as well as allocating tasks to the most appropriate person. The strategic plan also helps in ensuring that the business operates within a budget that is consistent with the available funds. The Four Functions of Management The four functions of management include “planning, organizing, leading as well as accomplishing tasks or controlling” (Nolan, Goodstein and Goodstein 2008). These are significant in the development and implementation of a strategic plan. Planning entails lying down the final organizational goal, organizing and undertaking it in an expedient manner. It is the level at which the managers determine the right person to undertake the tasks depending on knowledge and skills. Nolan, Goodstein and Goodstein (2008) further observe that planning gives an answer to the questions of the current position of the business, where the managers want it to be in future, as well as the way to get there. Organizing is an important activity that that is concerned with putting the carefully planned objectives in to a comprehensive system whereby each task is allocated to the right person as well as the actions that managers need to take in order for the operations to run smoothly. In other words, it is involved in setting strategies for coordination of activities. The managers set the steps to be followed in order to accomplish the business goals. Leadership is important for any business to thrive and achieve the capability of coping with competition in the market. It involves generating enthusiasm amongst the employees in order for them to be productive. It involves creating awareness amongst them in order to ensure that they understand the organizational goals and the procedures that need to be adhered to facilitate their accomplishment. The manager plays a significant role through acting as a role model as well as persuading the employees to follow the guidelines that have been laid down. Accomplishing tasks involves controlling the activities of the organization in order to ensure that the strategic plan is followed. The managers ensure that the performance standards are accomplished through constant supervision and evaluation of the process to make certain that each step leads to the desirable output. It also involves performance measurement through the indicators of performance developed in the planning stage. If they indicate that there are flaws in the process, managers may decide to make the necessary changes that are essential in the realization of organizational goals. Company Mission & Social Responsibility The company’s mission is to provide essential products, services and training as well as utilizing the best talent, skills and experience to maximize customer satisfaction. The organization is committed to promoting the health of consumers and the general public through participating in environmental conservation. External Environment The external environment is favorable for the business operations due to the absence of competition from similar businesses. More over, the strategic plan will enhance the accomplishment of organizational goals. Market analysis indicates that there is a rising need for the products and services that the business intends to offer. There is a reliable source of products for sale. Internal Analysis The organization has employed experienced staff and has sufficient finances that will assist in the successful implementation of the organization’s strategic plan. Strategic Analysis & Choice The approach to use in the implementation of the strategic plan has been chosen after a careful analysis of the operating environment, mainly considering the most effective ways that can lead to the maintenance of competitiveness in the business. Long Term Objectives The main objective is to establish a profitable company that will expand to become a multinational distributor of products and services as well as training. Generic & Grand Strategies The company will be offering a wide range of products and services in order to meet the needs of a large number of consumers. Market mix is a major strategy that will ensure that the organization remains competitive. Short-term Objectives Short term objectives will be significant in enhancing the realization of the long term objective. They include; maintaining an annual turnover of $80,000 for the next three years. The organization also intends to enhance career development amongst the employees through training, and maintenance of a negligible staff turnover in order to retain experienced staff in the organization. Functional Tactics Marketing research will be core to the organization’s operations. This will help in maintaining competitiveness, hence a high turnover. Policies that empower action It is the policy of the organization to maintain contentment amongst employees in order to maintain high productivity. The organization has policies that help in maintaining international standards of quality in order to satisfy consumers of its products. Restructuring, Reengineering & Refocusing the Organization Constant evaluation of progress will help in restructuring, reengineering and refocusing the organization in order for it to be consistent with the changing business environment. Strategic Control & Continuous Improvements Continuous research will help in ensuring that there is constant improvement in offering products, services and training. Strategic management and planning will help in ensuring that the business goals are accomplished. Bibliography Nolan T., Goodstein L., and Goodstein J. (2008). Applied Strategic Planning: Consultants Toolkit, 2nd Edition, John Wiley & Sons, Inc. Read More