BUSINESS

Strategic Change and Innovation

Strategic Change and Innovation

Introduction

A business organization goes through various levels of planning; these include strategic, tactical and operational planning. The level of importance placed in a particular planning decision decides which of these three categories of planning it would fall under (Jackson, 2011, p.54). Similarly, the level of significance pertaining to change brought about in an organization through this planning depends upon the category it relates to. Moreover, the inclusion of innovation in a business process also has a drastic impact upon the planning and growth strategies formulated by an organization (Ahlstrom, 2010, p. 14). All of these comprehensive aspects will be discussed in detail in the following pages.

Discussion

Why The Student Failed?

In my understanding, the reason why the student failed the assignment was because of a failure in understanding, in fact, differentiating between the different levels of organization level planning. Organizations around the world undergo three different types of planning stages. These include the strategic, tactical and operational planning. There is vast level of differences between these three forms of planning and a failure to differentiate between them is what caused the student to fail.

As the instructor specifically asked for the innovation adopted to be linked to the strategic change in the organization, and the student talked about introducing a self scanner checkout at a British supermarket, thus it is apparent that the level of understanding was missing. A clear difference and definition of these three forms of planning is described below.

Different Types of Planning

Planning is an important part of every organization. It involves a great level of time, but in return it drastically enhances the efficiency of the organization. Through planning, an organization reduces the risk involved in business activities; it ensures a integrative coordination amidst various departments; helps maintain a good control; makes the decision making process swift, and most importantly it helps an organization achieve its long term objectives (Ip & Jacobs, 2006, pp.327-328). There are three main types of plans which include operational, tactical and strategic plans.

Strategic Plan

Strategic plans are those which are designed while keeping the entire organization under consideration and the mission, vision and value of the organization sets the foundation of these plans (Capon et al., 2007, p.105). These plans design the long term future of the organization, and considering the level of importance they hold for an organization, these decisions are usually made the top notch level, which includes the CEO, president and other board members. The focal point of such plans is to advocate where the organization should be in a particular time frame, usually as long as five to ten years. Moreover, since this plan is strictly long term in approach, it lays the foundation for other different form of planning within an organization which is linked with the short term goals. Such form of strategic planning involves developing plans which directly affect the productivity, growth, profitability and growth in the long term. While simultaneously enhancing the return on investment and increasing customer brand ...