Question

Strategic Planning and Business Policy

write a 1-2 page of the paragraph, please. for more please visit @ https://www.amanet.org/training/articles/six-key-questions-in-strategic-planning.aspx

Six Key Questions in Strategic Planning

1. Where are you now? What is your current situation? If your business was in trouble and you hired an outside consulting firm to come in to help, the first thing the consultants would do would be to determine your exact levels of sales in every product/service area, the relative profitability of each of your products and services, the trends in each area, the amount of money you have and will have in the foreseeable future, and your position relative to your competition. These are all pieces of information that you can and must generate for yourself.

Answer 1

1. The organization is currently a medium level organization not a very small or a very big organization. The company was started only a few years back & still seems to be a new company engaged in offering services to its customers. The current situation of the organization seems to be fair without much trouble. But the company has to travel a lot to become a successful organization. Though the company was initially facing trouble in establishing market share, now it has travelled a lot.
2. Various factors / decisions responsible for company’s current situation can be:

• Lot of R&D activities.
• Careful analysis of the market.
• Sound marketing strategy.
• Investment & capital budgeting decisions of the company.
• Feasibility of company’s objectives & strategies in terms of market share, sales, costs, profits etc.

1. The goal for the next five years for the company would be:

• The company aims to sell good amount of products to its customers. As the current market share of the company is 30%, in the next five years, the company aims to become the market leader for its product.
• The company expects to get good profit share from its business. The exact income can’t be estimated as the future is unpredictable. The company can compare its profits with its competitors who seem to be engaged in the business for years. The company can compare it in terms of turnover, costs, price for the product etc.
• There would be lakhs of people working. As the company currently stands only in terms of thousands, it plans to bring in more people.
• We would like to target customers of all age group & not specifically anyone group. They would be located throughout the country.

1. The following are some of the steps that can be taken by a company:

• Making the employees more engaged is also one of the factors responsible for growth of any organization or business.
• Updating the company with latest technology & market changes.
• Focusing on the strategy of the business.
• Identifying & removing internal obstacles.
• Ensuring that the customers always remain at the center of the organization.
• Following leadership practices that has high impact & effect on the organization’s performance.
• Keeping an eye on the competitor’s actions.
• Having good organization policies.

1. The company may come across various obstacles when it has to reach the destination of success:

• There can be problems internally within the employees.
• Sometimes there can be difference of opinions with external parties like suppliers, auditors etc.
• There can be financial problems like shortage of resources to implement a plan.
• The tastes & preferences of the customers which keeps varying
• Changes in the market position.
• Growing competitors, new entrants etc.

The above mentioned are some of the obstacles/ problems that an organization has to face if it wants to reach its destination. Of the above factors, lack of resources, new entrants etc. are considered to be the major ones. This is because it happens that a company would have come up with a very good idea or plan but may not have the sufficient resources to implement it.

Similarly new entrants, though they are new to the market, sometimes new entrants or companies tend to perform because of their latest strategies, techniques etc. as a result of which existing organizations have to stay back in the market.

6. The company needs to have the following skills:

Good decision making abilities, knowledge about the latest techniques & trends in the market, changing preferences of the customers, each & every movement of the competitors, do more R&D, tactics to be followed in retaining good & talented employees etc.