Strategic Management and Strategic Planning - Essay Example

The aim of the paper is to analyze and evaluate how the Gillette Company responded to just such a set of circumstances and introduce change management into practice. The Gillette Company is a leading division of Proctor and Gambler specialized in personal care and household products. In this company, creative management consists of new ideas, new directions, new methods, and new modes of operation (Gillette Home Page 2008). Innovative management is much the same as the second element of creative and innovative activities--better results.

Innovative management is involved with those innovation processes that implement creative ideas and move successfully in new directions. "The concepts "planned change" and "managed change" refer to changes that are deliberately shaped by the organization members (managers, consultants, groups). What distinguishes between the two concepts is the type of people they refer to (Hage, 1999). "Planned change" usually refers to how experts, outside or inside the organization, can help the organization cope with difficulties, and to plan and implement desired changes" (Levy and Merry 1986, p. 3). The Gillette Company operates in turbulent environment marked by increased competition.

The need for change is caused by new economic and social conditions, technological improvements and innovations implemented by direct competitors of Gillette. In order to remain competitive, Gillette has to respond to market changes and meet demands and expectations of diverse customers. The aim of change process is to restructure the company and introduce technological innovations and IT into everyday practice. These changes will cover organizational structure, climate, morale and culture (Mclagan 2002; Gillette Home Page. 2008). Strategic Planning Defined Strategic planning has many definitions.

It basically answers the question of what will be done. Strategic planning is a leadership instrument and a process. It begins with establishing organizational aims and purposes, followed by formulation of ways and means to achieve those purposes, and provides direction for implementation of operational or tactical planning (Senior 2001). Strategic planning is a process for setting future direction, a means to reduce risk, and a vehicle for training managers. It is also a process for making strategic decisions, a way to develop consensus among top managers, and a means to develop a written long-range plan.

Another definition of strategic planning is "that element of a manager's job and of the organization's function that deals with the contrivance of change, rather than the simple reaction to it" (Senior 2001, p. 54). Strategic planning involves those choices related to overall organizational purpose, oriented towards the future. Strategic planning/thinking entails operational (tactical) planning--the planning of those actions to be taken to put strategies into effect. This type of planning answers the question of how to get the job done.

It often consists of specific objectives accompanied by short narrative action plans (Gillette Home Page 2008). Strategic management may have two diametrically opposed definitions. One is that it is the overall encompassing effort for total management of an