Strategic Planning and Decision Making

Strategic Planning and Decision Making

Introduction

In the competitive era of globalization and technology, the businesses have expanded drastically all around the world. The technology has changed the dimensions of the business planning and the decision making. The following essay is the evaluation of the decision making and the strategic planning that businesses take in order to survive and maintain their existence in the corporate world.

Discussions

Strategic Planning

Strategic planning is one of the functions of strategic management, which is the process of selecting the organization's goals and ways to achieve them. Strategic planning provides the basis for all managerial decisions, functions of the organization, motivation and control-oriented and strategic plans. Without taking the advantage of strategic planning, the organization as a whole or the individuals will be deprived of a clear way to assess the goals and direction of the corporate enterprise. The strategic planning process provides a framework for managing members.

Conceptual Models of Strategic Planning

A model is one that presents conceptual idea of what something should be in general, or a picture of something formed by generalizing particularities. In return, a working model is actually used in enterprises.

The main features of the models Conceptual Strategic Planning are:

Planning Assumptions

Formulating plans

Implementation and Review

Information flows and Standards Assessment and Decision (Dolence,Rowley. Et.al.1997)

Strategic Planning System

Strategic planning system allows shareholders and management companies to determine the direction and pace of the business development. It also outlines the global market trends, understands the organizational and structural changes which are needed for the company to make it competitive that is the advantage of the tools needed for its successful development. (William.1990)

Strategic Planning Process

Strategic planning is the process of developing administrative and maintains a viable relationship between resources objectives the organization and changing market opportunities. The objective of strategic planning is to shape and reshape business and products of the company, so that they combine to produce a satisfactory development and utilities. Strategic planning process of the company consists of several stages: (Leonard, Timothy.et.al.1993).

Mission statement and objectives.

Analysis of the environment, which includes data collection, analysis of the strengths and weaknesses of the company, as well as its potential based on available external and internal information.

Choice of strategy.

Implementation strategy.

Evaluation and control of performance.

Strategic Choice

Strategic choice involves the formation of alternative courses of development of the organization, assessment and selection of the best strategic alternative for implementation. It uses a special tool, which includes quantitative forecasting techniques, the development of scenarios of future development, portfolio analysis (BCG matrix, McKinsey Matrix, SWOT analysis etc.).

Until recently, the strategic planning was the prerogative of large international corporations. However, the situation began to change, and, as polls show, more and more companies from medium business begin to engage in strategic planning. (Arnold, Hugh.et.al.1986)

Businesses design many strategies that can work to achieve the aims and goals of the business. Though, companies need to choose the best and the most suitable strategy. It needs the businesses to take effective and productive decisions. Therefore, let's have a look on the decision making, process, ...