Strategic Planning Process

Strategic Planning Process

a). Questions

1. Henry Mintzberg's 5 P's

Strategy can be defined as a plan of actions that are required to be taken, to achieve the objective. According to 5 P's of Henry Mintzberg strategy is a plan, a ploy, pattern, position, and perspective. Plan is a course of action that is intended cautiously and purposefully, an organization plans a strategy for instance to capture 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, it encompasses the resulting behavior. Positioning your strategy is to locate business in the external environment, and maintaining a fit between the internal and external environment. Positioning reflects to locate business in 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. I agree with Mintzberg as 5 P's as 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 (Campbell, Stonehouse & Houston, 2012).

2. Difference between Operational and Strategic Plans

Plans can be implemented for achieving both short term and long term objectives. An operational plans guides businesses to resolve their day to day and current issues as they are encountered, whereas strategic plan focuses on accomplishing long-term goals. Strategic planning is more exposed to risk and uncertainty due to ever changing environment therefore planning is done for future that is based on past experience, on the other hand operational planning is concerned with certainty of continuity. Strategic planning searches for opportunities in the market and then to reach those alternatives that will assess in developing the business. top managers are assigned the responsibility of strategic planning, however lower level management is delegated the authority for operational planning. Organizational plans assists in achieving long-term strategic plans (DuBrin, 2008).

3. Why Organization Does Not Have a Strategic Plan

Strategic planning is a process of gathering data from internal and external environment, discussing and analyzing the data looking out for the problematic areas and coming with solutions to resolve the problems, which 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 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. It also results in lack of motivation from the employees' end as individuals look for benefits they will achieve however since strategic plans ...