In: Operations Management
For my Business Policy Class:
1- What is strategic planning?
2- Why is it important for all organizations to engage in strategic planning?
3- How does strategic planning make management more effective?
4- Why is it essential for organizations to have formal objectives?
What is strategic planning?
Strategic planning is a process where the organization leaders
or management determine their visions for the future, and also they
set the priorities,strengthen the operations, focus energy and
resources, ensures that staffs and other stakeholders are working
towards same goals. it helps to establish the agreement around
intended final result, and asses and adjust the for organization
direction based on the change in the market or the environment.
This is a disciplined process that produces fundamental decision
and the action that form and guides what an organization is about,
What it serve, whom they serve, what it does , why it does, with
the focus of the future
Why is it important for all organizations to engage in strategic planning?
Strategic planning is important for an organization , it provides the direction and outlines the measurable objectives. It acts as a tool that guides the day to day decisions also evaluate the progress and changing the approach or technology when moving forward. It allows the organization proactive than the reactive- it allows the organization to foresee the future and plan accordingly. The companies can anticipate about the unfavorable situations that may occur in the future. It sets up the sense of direction- it helps to determine the direction in which the organization must travel. It offers the much needed foundation using that the organization can grow, analyze its success, compensate the staffs effort and establish the boundaries for valid decision making. It increases the operational efficiency- it helps to management in order to take the decision about determining resources and also the budget requirements for accomplishment of the set of objectives, hence increase the operational efficiency. It helps to increase the market share and profitability- the approach which is well strategized and targeted will turn the sales and marketing effort into the best possible result which helps to increase the market share as well as profit.
How does strategic planning make management more effective?
The strategic planning approach will help the management to
effectively manage the key building blocks of long term
organizational success. it helps the management to become effective
in developing , managing , implementing the strategic plans so that
it will support the organization for long term success. In order to
make the most of the strategic planning the company should be very
careful in giving thought to the strategic goals it outlines, then
back up these objectives with thoroughly researched,
realistic,quantifiable benchmark for analyzing. The strategic
planning starts with defining the company mission, Define the
mission in such a way that is broad enough to the employee as well
as the management, and it should be narrow enough to focus their
effort. The measurable goals are set specific, goals are
expressed in terms of the timelines and quantities. The measurable
goals are very important for the organization because they enable
the management and the staff to evaluate the progress of the
product and place development. The organization also gets the
benefit from the building a stage into the strategic planning
process, which involves evaluating the objectives and progress
after an some period of time in the light of organization success
in achieving these objectives.The strategic planning is valuable
process when it includes staffs in all level of departments and at
all levels of responsibility thinking about how their actions and
responsibilities fit into the larger picture, and about their
contributions.
Why is it essential for organizations to have formal objectives?
Forma planning helps the organisation to achieve its goals with ,the process starts with observing the current operation and identifying what need to be improved in the future.Planning helps in effective utilization of the resources- all the organization which is small or large have limited resources, the formal objective provides this information to the upper management about effective allocation of the resources in a way that will help the organization to reach its goal. this will improve the productivity and resources are wasted. setting the goal is very challenging for everyone in the organization to achieve the better performance. The goals should be aggressive but realistic. organization should not allow themselves too satisfied with how the things are going on currently or they are likely to lose ground to the competitor. Risk management is essential for each and every organization. Reducing the risk or removal of the risk at the beginning stage will reduce the time ,effort and money of the organization and employee. Formal objectives will helps to predetermine the risk possibilities that may occur in the future so that the company will be ready to face and solve the risk.