Solved: Business Strategy Question "Strategy is the direction

Business Strategy Question

“Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson & Scholes- Exploring Corporate Strategy)

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Solved: Business Strategy Question "Strategy is the direction
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Discuss the strategic planning process from the perspective of an organisation embarking on a strategic planning exercise and seeking to achieve competitive advantage. (25 marks)

Expert Answer

The process of strategic planning includes a number of steps. There can be a variation in the sequence of these steps from the point of view of experts or facilitators but they all agree to include the most vital steps:-

STEP A: Determine the shared and mutual values and experience of manpower and board. In order to facilitate strategic planning, some kind of meeting or workshop must be conducted.

STEP B: Prepare, update or revise the existing mission statement of the organization

STEP C: Conduct “PEST” – political, economic, social, and technological factors test for determining the external environment of the organization along with the examination of internal environment with the help of complete review and analysis of resources or inputs, processes, and performance or outputs

STEP D: Perform the SWOT analysis for knowing the organization’s internal strengths and weaknesses, and its external opportunities and threats

STEP E: For conducting the in=depth planning in some of the vital areas of operation, create smaller group or teams

STEP F: The existing strategic plan of the firm must be re-analyzed so that the various aspects of the plans which are strategic in nature can be identified; the plans which lose their strategic importance due to changed environment and to determine the gap or new issues which must be included in the new plan.

STEP G: Create the mid-range vision where the organization should be in three to five years of time from today onwards.

STEP H: Determine the different strategic issues faced by the firm.

STEP I: In order to address the critical issues faced by the organization and to make sure that it accomplish the longer term growth and sustainability, new goals and strategic objectives must be formulated.

STEP J: In order to measure the performance, it is required to create the work plans which include thee vital activities, responsible individuals, various resources which are required .

STEP K: the others steps which are required in resource mobilization and develop a sustainability and financial plan which is important to generate adequate revenue or funding.

STEP L: Prepare the written detailed five-year strategic plan (mission statement, environmental or situational analyses, strategic issues, goals and strategic objectives, activities plans, sustainability and financial plans, monitoring and evaluation procedures or cycles)

STEP M: Look for any kind of changes if it is required to be done in the plan and propagate it among the staff, stakeholders, potential donors

STEP N: Implement and institutionalize the plan while performing the establishment of performance standards, decision making, planning, monitoring, and resource mobilization and allocation. There must be a review of the plan, updating and revising it in every 3-4 years whenever it is required.

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