Strategic Planning Analysis and Application - Essay Example

Strategic Planning Analysis and Application

Strategic planning is a public company’s way of creating a strategy, plan, or vision and later deciding how its resources can be allocated to follow that particular direction. The firm creates mechanisms to enhance the implementation of the strategic plan that has been created. Public corporations need to have strategic planning in attempts to enhance their management aspects and drive towards their profit making (Steinberg, 2007). Strategic planning involves a lot of researching to come up with the best plan for the company. In the case of a public organization, the plan should be constructed in such a way that it leads to improved service delivery and profit realization. A public firm that has stake holding from the general public should strategize on methods that do not compromise the shareholders’ investments. In the generation of a strategic plan in the public organization it involves goal setting, defining actions to achieve the target and later allocating the resources for the achievement. The strategies involve defining how the targets set by a certain company will be accomplished using the available resources and means. On that regard, the strategic planning should be carried out by the human resource in higher hierarchies of the managerial positions.

In public organization, strategic planning involves four elements inputs, means, outputs, and outcomes. The outputs and outputs are treated as a single element as they all indicate the end results of the strategic plan. However, their description should be treated independently. The first two elements cover the internal environment while the other two are directly related to external environment (Grünig, Kühn, & Kühn, 2005). The elements of the strategic planning define the process of implementing the vision that has been conceived. Just like other processes, strategic planning has its own constraints during its implementation. The constraints may be derived internally from a public organization or externally from its clientele. The constraints limit the efficacy of the strategic planning, thereby minimizing the growth of a public firm. On that regard, there is a need to minimize the constraints by carrying out an in depth research regarding the company before conception of a strategic plan meant for the growth of any public organization. Strategic planning is repetitive in nature and may be applied iteratively over various times depending on the financial years of a public company and the breakdown of its vision. Since the planning is dependent on a feedback program, it may experience communication loops during its reporting. Additionally, the strategic planning elements may be implemented in two various ways. Some elements may be implemented continuously while some elements are implemented discretely (Poister, 2010).

The input element entails carrying out detailed research to extract crucial information regarding the external and internal environments regarding the public organization (Meng, 2012). The information can be acquired using various research methods and later gathering the collected data conclusively. The company’s executive stands in a better position to provide primary data regarding the company’s history and operations. The management on the other hand should be ready to unravel all the information needed for the development of a strategic plan unless they are barred by the firm’s policy. The data gathered forms a clear backbone to the construction of a workable strategic plan. It is the most basic pillar in the conception of a strategic plan that steers a public company in its growth pathway. The inputs also include other things such as competitive intelligence to enhance a firm’s position in the market (Mitchell, 2008). In the development of inputs, the firm should take into consideration the information regarding the shareholders, senior management and the board. Additionally, the inputs should look into a company’s competitive risks and opportunities so that solutions can be suggested.

Strategic planning activities or means include brainstorming and meeting among the committee that is steering the conception of the vision. It should involve communication processes between the public organization leaders in an attempt to conceive a concurrent idea on the same issue while analyzing all probabilities and giving suggestions (LePrevost & Mazur, 2005). The communication includes defining the business prospects as well as considering the need for a strategic plan. The meetings should entail in depth analyses on the company’s future while referencing the firm’s previous performance in the market. The firm should consider a variety of tools during the strategic planning activities. One of the tools should entail the services and the products that need to be included in a company’s production line. The inclusion and exclusion criterion should be based on the contribution of that particular product and service into the firm’s growth (Andersen et al., 2006). The activities should also be based on the geographical boundaries of a company so that it can predict its ability to expand. Activities should also include the skills and personnel skills that need to be developed in the public company to catalyze and catapult its growth in its industry of concentration. It is also important to differentiate the public company from its industry contenders so that a plan based on its strengths can be developed.

The output is the third element of strategic planning that should be well utilized to enhance a workable vision. Output entails communication and documentation of the strategic plan while elaborating how the vision will be implemented by all stakeholders in the firm. The output should explain how the public firm wishes to enhance its position in the industry. The documentation and the communication should take all forms to ensure that the public company achieves its mandate of planning (Killen, Walker, & Hunt, 2005). The relayed information should include a diagnosis of all risks of releasing the information to the stakeholders. It should also contain specific strategies that are well elaborated to enhance its usability. The output should give a guiding policy that explains the firm’s requirements to accomplishment of the vision. Action plans should also be released within the output element. Financial budgetary estimates should be released in the output to explain the firm’s monetary performance after the implementation of the strategic plan. Only the required information should be disseminated with the critical and secretive information being held by the senior most management personnel. With a strategic plan covering a couple of years, its output should take forms that are durable and storable by the public company for future reference in case it may be deemed reusable (Glaister, Dincer, Tatoglu, Demirbag, & Zaim, 2008).

The last element of strategic planning is the aspect of outcome. Outcome is a process of strategic planning that takes place after the implementation and execution of the vision as elicited in the conceived plan. The outcome of the strategic planning is expected to differ greatly with the original plan as the implementing committee may include some changes during the execution (Dincer, Tatoglu, & Glaister, 2006). The changes may be deemed necessary, especially if some parts of the original plan were addressing evolutionary areas such as technology. The outcome however, should be concentrated on comporting to the legal requirements. The outcome should be a learning process for a public company in that it gives the firm a chance to test its compatibility to strategic planning. The outcome of the strategic planning should allow every departmental head to take liability for his or her action during the implementation of the original plan. Successful departmental heads should be appraised after the outcome of the planning has been released.

Different strategic planning models have been used during the development, conception, and execution of the whole vision. However, in my public company I would apply a SWOT strategic planning model. SWOT analysis allows for a public firm to test its internal strengths and weaknesses against external opportunities and threats on a relativity basis. This approach allows for the company to identify the areas it can rely on to improve its growth and expansion. Moreover, it allows the firm to identify areas that could limit its growth while at the same time developing solutions for the limitations. The identification of the weaknesses and strengths allows for the firm to take into consideration its position in the market and its ability to grow. The identification should be taken while considering the external forces. The external forces are meant to influence the internal decision during the strategic planning. The external forces should give a firm the ability to assess its opportunities and risks to enhance its position as an industrial player.

SWOT is quite critical during the creation of a balanced score card. SWOT is quite an important strategic planning tool as it enhances the creation of plans that push the company in a higher industrial position. The model allows for senior management personnel to monitor the performance of a company to allow for preparation of a workable strategic plan. The evaluation and the monitoring process is quite important in defining the growth of any public company as it gives the senior management officials a chance to identify factors that could influence the development of a public firm. The information accrued by the managerial officials allows for a basic conception of a workable strategic plan. SWOT analysis gives all information that is required for a usable strategic plan that could enhance the operations of any public corporation. SWOT is also quite critical in the execution of any strategic planning.