Importance of Strategic Planning in Organizations
Importance of Strategic Planning in Organizations – The strategy can be defined as a plan of actions that are required to be taken, to achieve the objective. According to 5 P’s Henry, Mintzberg’s strategy is a plan, a ploy, pattern, position, and perspective. The plan is a course of action that is intended cautiously and purposefully, an organization plans a strategy, for instance, to capture the market or earn higher profits.
Consequently, a strategy can be a ploy too, which is maneuvered with the intention to outwit the competition from the market. Strategy as a pattern is a stream of actions, as plans are intended; patterns are realized, and it encompasses the resulting behavior.
Positioning your strategy is to locate a business in the external environment, and maintain a fit between the internal and external environment. Positioning reflects locating a business in the external environment, whereas perspective focuses on the internal environment, the perspective that individuals within the organization share for the organization by common thinking or behavior. Mintzberg’s 5 P’s strategy is a plan to determine actions that will make certain for the organization to accomplish its goals similarly 5 P’s also provides a complete framework for achieving the objectives of the company.
Plans can be implemented for achieving both short-term and long-term objectives. An operational plan guides businesses to resolve their day-to-day and current issues as they are encountered, whereas a strategic plan focuses on accomplishing long-term goals.
Strategic planning is more exposed to risk and uncertainty due to the ever-changing environment. Therefore, planning is done for the future that is based on past experience; on the other hand, operational planning is concerned with the certainty of continuity.
Strategic planning searches for opportunities in the market and then reaches those alternatives that will assess in developing the business. Top managers are assigned the responsibility of strategic planning; however, lower-level management has delegated the authority for operational planning. Organizational plans assist in achieving long-term strategic plans.
Strategic planning is a process of gathering data from the internal and external environment, discussing and analyzing the data looking out for problematic areas and coming up with solutions to resolve the problems. The process is time-consuming and also costly for organizations, thus, small firms cannot afford to have a strategic plan. Lack of knowledge also results in managers not being able to create a strategic plan.
For small companies with a limited amount of resources and budget, it is critical to allocate those resources efficiently thus they find it costly to implement strategic plans in their organization. It is often also difficult to communicate the vision and strategy all over the organization. Strategic planning requires continuous monitoring by the organizations which they may find difficult.
Our writers have written several essays, research papers, and dissertations. If you want to get a custom essay or research paper then contact us and place your order now.