Traditional Steps in Strategic Planning - Essay Example

Defining a strategy, strategic planning, Strategic management and Competitive Strategy of the Strategy The term refersto an intelligent plan set down in order to achieve various goals within uncertain conditions. A strategy comes to place due to the limitations in the availability of the resource a business entity has in a specific period. A strategy is a way of shaping up the future or in simpler terms it is a way of achieving the desires of a particular entity given the available avenues to a particular institution. In totality, a strategy refers to the making of goals, the specific ways of achieving the goals and executing the resources to enable the achievement of the set goals (Hill, 2012). On the other hand, strategic planning is the process through which an organization defines the strategy to achieve major, as well as minor goals. In other words, strategic planning is the directing and the making of crucial decisions that concern the allocation of the available resource as per the institutions strategy. The strategic plan also involves the control process of management as a way of implementing the decisions that encompass the strategic plan. The traditional planning method of building an organizations strategy comprises several steps. However, the tradition style of strategy planning omits the step of innovative thinking which to some works of research is the most important aspect of strategic planning is innovative thinking. It is significant also to state that the approach to strategic planning varies given the unique features of every organization. The unique features may include the purpose of every institution, the culture of each organization, the environment and immediate surroundings and the history of other plans; whether they were successful or not. Traditional Steps in strategic planning The first step in strategic planning is the identification of the purpose of the planning process. The procedure makes up the mission statement. The step tends to put forward the reason behind the existence of the firm. The needs of the client makeup the basic purpose of the organization and thus are an outline in the first step. The second step enumerates the vision of the organization. The step’s main focus is the description of the future state of the business entity and the state of the clients of the organization in the future. The third step is the establishment of mandatory goals that the institution must reach in an attempt to achieve the set down goals as per the organization’s mission and vision. The step also tries to give answers for the prevailing challenges that the organization is undergoing through in its operations. The fourth phase is the recognition of the best approaches that require fulfillment as a measure of reaching the organization’s anticipations in accordance with the institution’s mission and vision. More robust plans are mad with an aim of rectifying the prior plan. The robust plan is possible courtesy of the conduction of more examinations on the external as well as the internal surroundings attributing the organizations. The fifth step is the deduction of the plans made in the fourth step to more specific plans. The phase also includes the determination of specific activities and specific objectives for every major function in the institution. The step also involves the proper and simple formulation of the goals in words to suit all the stakeholders of the organizations. The goals should be simple in a way that the goals that are yet to be attained are easy to comprehend and have an alternative strategy. In other cases, the fifth step has a substitute that entails the compiling of the vision, the organization’s mission, the goals and objectives of the organization. In addition, action plans are outlined, and the product is a strategic plan document that entails earlier achievements in the process of strategic planning. The final step is the speculation of the implementation of the plan and making of necessary updates. A consequent evaluation of the efficiency of the plan is a common factor that determines the extent to which a particular plan is successful. Strategic management The term refers to the formulation as well as the implementation of the set down objectives, goals as well as initiatives that encompass a particular institution in accordance to the available resources about the immediate interior and exterior surroundings. Strategic planning tends to provide the direction in which the firm is to head in order to accomplish its mission and vision. Strategic management also ensures that specific activities that ensure the achievement of specific objectives are in place. The decisions made in strategic management are made by the executive of the business entity on behalf of the owners of the organization or other stakeholders. Strategic management involves three steps according to recent studies. The recognition of what is to be done is the initial and most crucial step of management. The subsequent step is the act of choosing what is to be done and what is not to be done in an attempt of achieving the set down goals. The third step is the providing the specific ways in which the company is to remain relevant to the market (Kiechel, 2010). Thus, the step involves the determination of the best method of competing in the market in order to realize the goals in an efficient way. Competitive strategy, on the other hand, seeks to answer the question of the business practice that best suits the business establishment and the various avenues that will enable optimum competition of the business entity in the market. Competitive strategy is also the method of attaining competitive advantage in the market. Competitive strategy revolves around three processes. The leadership cost strategy, the differentiation as well as a particular focus strategy. Cost leadership is the attempt of reducing the cost of leadership more than other institutions practicing the same kind of business. The differentiation strategy encompasses the supply and marketing of an organizations product in orders to acquire a competitive advantage in the market (Rumelt, 2011). The focus strategy is the recognition of a homogenous group that is to be the target market as per a particular strategy that will ensure efficient delivery and consumption of the commodity as per the traits that that group possesses. References Hill, C. W. (2012). Strategic Management Theory: An Integrated Approach, Cengage Learning, 10th edition . London: Cambrigde press. Kiechel, W. (2010). The Lords of Strategy. London: Harvard Business Press. Rumelt, R. P. (2011). Good Strategy / Bad Strategy. New York: Crown Business. Read More