Question

Companies use strategic plans as a course of action for success. What components would you consider necessary for creating a strategic plan? What ethical considerations should you include in the strategic plan? Why?

Answer 1

Strategic plans are the documents which helps in achieving goals and targets in an effective way. If the company will have a proper strategic plan, it will help in facing adverse challenges that might occur while achievements of goals. Strategic plan is formulated by the top level management of the company and the same has to be implemented by the executive and subordinates in an effective way. Some of the main components of strategic plan can be discussed as follows:

• Mission, Vision statement: The mission statement helps company and its people in knowing the reason for its existence, it includes the goals that company wants to achieve etc. Vision statement is a more concise and short statement, it states what the business should look like in five to ten years and how that goal should be achieved.
• Core Values: The core value states that what company expects from its people, there is a list of 'musts' and 'must not'.
• SWOT Analysis: The SWOT analysis helps a company in assessing its internal strength and weaknesses as compared to external opportunities as well as threats.
• Objectives, strategies etc.: Once, mission,vision statement is prepared, short term objectives along with strategies to achieve those objectives shall be framed.

The strategic plan that must contain certain ethical considerations as well, these includes:

Mission statement: It will describe the company's sole purpose of existence, the purpose should be ethical and should not be solely based on profit and wealth.

Code of Conduct: The code of conduct is designed by the owners of the business which helps employees in knowing how to react and act under certain situation within the business. It helps in maintaining the human behavior in line with company;s goals and targets.

Employee relation strategies: It is important to ensure that relation with employees are fruitful. It is a sign of a ethical management and company.

Social responsibility strategies: A company uses resources of society to do business and earn profits and thus it has the responsibility to take care of society as well in an effective manner. For this, the company should frame a proper social responsibility strategy.

These ethical considerations should be included in strategic plan because it helps company in increasing its reputation among stakeholders as well as building up a good public image.