This report reflects the key understanding on the strategic planning and business effectiveness. It is observed that if company wants to manage its business effectively then it could be done by using effective strategic planning. Organization is accompanied with the complex set of activities in which various functions are performed. This presentation reflects how board of directors through their team management sprit could increase the overall productivity and effectiveness of business (Rothaermel, 2015).
It is the long term planning process in which all the internal and external factors are analysis. Company needs to manage its all the internal and external factors with a view to develop strategic planning. In strategic planning company needs to evaluate its past factors and on the basis of its past factors and present business situation, it has to prepare its business planning (Christopher, 2016).
Example of strategic planning
- Strategic alliance,
- Taking financial investment decisions
- Installation of cyber computing ERP system
- Increasing overall turnover
- Increase the number of employees
Management decision success
Decision making is the key success factors for the effective business function of Nesbee Chocolate Factory. It is the process to take effective business decision. If company wants to create synergy or reducing the complexity of business then it could be done by using effective business decision. All the long term strategic decisions depends upon the strategic planning. It is consisted of analyzing the internal, external factors and evaluating past data of company (Grant, 2016).
Applied strategic thinking
It is the process of using critical analysis mind. Ideally big organization get caught in situations where it has to prepare long term strategic planning. For instance, if a company wants to install cyber computing ERP system then it will have to evaluate the available finance, cost of capital , available options and its impacts on the business functioning. If these all factors are not taken in proper manner by the management department of organization then it may result to destruction of business operation and business loss (Short, et al. 2013).
Strategic planning process
This process is accompanied with identifying the goals and objective of company, SWOT analysis, formulating business strategies and implementation of these planning. After that evaluation and follow up program is implemented (Smith, 2013).
Strategic management frameworks
It is evaluated that if company could implement proper level of strategic planning process then it could not only help stakeholders to create value on their investment but also increase the overall productivity in determined approach. Strategic alliance or establishment of nexus between stakeholder’s welfare and company’s development is the key intent of strategic planning (Goetsch & Davis, 2014).
Practical implication of strategic planning in company
There are several companies who have created core competency while using strategic planning in organization. it is evaluated that Qatar airline entered into strategic alliance with other organization to expand its business. BP used strategic planning to reduce the negative impact of Deep water Horizon oil spills. There are other several facts which reflects the importance of strategic planning in practice life. In strategic planning, company needs to identify its goals and objective and evaluate all the internal and external factors to prepare strategic planning. After that in the implementation of strategic planning, company mitigate all the problems in easy and determined approach (Peppard & Ward, 2016).
Use of divergent thinking
Strategic planning is made by the Board of directors by using divergent thinking. It is the process in which company evaluate whether the undertaken idea or planning process could mitigate the present problems. For instance, when company has problem of high demand of the products and services, it could mitigate these problems by implementing strategic plans for increasing overall production (Booth, 2015).
After evaluating all the factors of strategic planning, it could be inferred that if company could formulate effective level of strategic planning then it could help company to create effective shield against all the possible threats. Strategic planning is the long term process which should be undertaken by company after evaluating all the possible threats and opportunities in market.
Booth, S. A. (2015). Crisis management strategy: Competition and change in modern enterprises. Routledge.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Grant, R. M. (2016). Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Short, M., Baker, M., Carter, J., Jones, C., & Jay, S. (2013). Strategic environmental assessment and land use planning: an international evaluation. Routledge.
Smith, R. D. (2013). Strategic planning for public relations. Routledge.