Strategic Planning - Article Example

Marketing Strategic Planning Peter and Donnelly (2006) argue that strategic planning in management involves identification and description of strategies that a company manager’s undertake to attain a competitive advantage and better performance (p. 10). Management should acquire adequate information and knowledge and undertake a thorough analysis of the business environment before making any critical business decisions (p. 20). Peter and Donnelly assert that strategic planning not only involves planning for the predictable but also the feasible (p. 27). Gilbert’s article suitably explains on this phenomenon since the company executive management advocates for cost reduction on its operations (Gilbert, 2012, p.10).Gilbert (2012, p.10) asserts that Chesapeake wants to cut on its costs.

I choose Gilbert’s article, because Chesapeake’s top management faces a decision making task that will determine its future progress. Chesapeake’s drilling costs account for approximately 50 percent of the whole costs. This presents the company management with a huddle since cutting on the drilling costs would lead to a reduction in the output. In its move to reduce costs, Chesapeake plans to increase its drilling funding through selling some of its assets. Approximately, the company will acquire 4 billion US dollars by selling some of its pipelines (Gilbert, 2012, p.10). The south eastern stockholder criticized Chesapeake Company for increasing costs and suggested that the company should cut on its capital costs.

Chesapeake has also suggested it intends to change its management with highly competent personnel (Gilbert, 2012, p. 10).In my own opinion, Chesapeake’s management has failed to secure an efficient allocation of organizational resources, which has resulted to a lack of unified direction. The management needs to come up with an effective strategy that will not only consider cutting the costs but also increase or maintain its productivity. Peter and Donnelly (2006) assert that a well drafted strategy leads the management in its actions and decisions (p. 36). In addition, it renders an incorporated approach for the company and assists in conforming to the challenges posed by the environment (p.37).Works CitedGilbert, Daniel.

"Chesapeake Faces Costly Cuts." The Wall Street Journal [New York] 7 June 2012: n.pag.10 Print.Petter, Paul J., and James H. Donnelly. "Strategic Planning and the Marketing Management Process." Marketing Management: Knowledge and Skills. McGraw-Hill/lrwin, 2006. Print.