One of the most important aspects with any company is going to be looking at their strategic plan. Strategic plans for a business help to show the direction the organization is going, helps define their financial and strategic goals and what business moves will be needed to get those results (Thompson, A. 2017). An example could be that a business wants to cut down on their amount of calls coming into a call center by offering more self-help. By driving those calls out of the business, it’ll save the company 1.5 million dollars for that year and will be achieved by setting front line initiatives to push self help to customers when they call in for help by offering to walk them through it.
Components of Strategic Plan
Not only are businessmen and women going to be met with lots of challenges when coming up with the strategic plan, but they will also have to convince employees and shareholders to help get their buy in with the company’s direction (Wittman & Reuter 2008). Looking at the different components of the plan you need to have a vision, mission, objectives and sound strategy to form a strategic plan. A vision is important because you want to show where the company is going in the future. The mission is important to so companies understand what they do and how they do it currently. It’s also important they have objectives so that the business has goals for what they want to achieve and a strategy that goes over business moves needed to meet those goals. One example of a well-known vision is with Nike who wants to bring inspiration and innovation to every athlete in the world. How the go about doing that makes up the remainder of their strategic plan.
Strategic planning for single and multi-business companies
There are going to be differences in the way a business approaches a strategic plan if they are only focusing on one company or multiple. If you’re only focusing on one company your job will be a little easier because you’re only looking at on plan to be profitable and meet your business objectives. However, the difference with a company with multiple business is more complex in that one of their business might be in a stagnant or declining market which has prompted them to go into a new business market. This can help the company continue to make profits, but they will have to develop a separate strategic plan for each business.
Developing an International strategic plan
Developing a plan for a business when they want to go international is easier said than done. To be successful a business is going to need to be able to achieve their strategic goals by interacting and working closely with their customers in those countries (Lee & Griffith 2019). A good well-known example is with McDonald’s hiring Den Fujita when wanting to expand into Japan. The reason they were successful is because he knew the customer base, the laws and other intricacies needed to enter that marketplace. Businesses looking to go into new markets are smart to follow a similar example by partnering with a local businessman who can help them ease the transition with entering a new market.
Why strategic plans are easier made than executed
While coming up with a solid strategic plan can be a lot of work to put everything together, it’s always going to be more difficult seeing that through. The reason they are easier made than accomplished is there is always the opportunity that your plan will be met with roadblocks along the way and will need to be reevaluated. It’s not much different from an NFL coach who can draw up great play. It’s always easier to come up with a brilliant play, than it is for it to be executed on the field. For the play to work, ever moving part needs to be working together and perform their correct job. If someone makes one mistake and misses a block or assignment, the play will fail.
Strategic Planning Discussion
In regards to strategic planning. Strategic planning is utilized by any given organzaition or company for many different reasons. First, an organization or company may utilize a strategic planning approach when they are coming up with any changes or even adding in additional new structures within the organization. A good example of a company that utilized a successful strategic plan for pricing is Amazon. “Amazon has long pursued a strategy of winning by pricing low. Amazon’s primary objective is to gain market share.” (AMZ2019) Next, to understand what the components of a strategic plan and explain the importance of each component in a strategic plan are important. The components in a strategic plan include a vision, a mission, many objectives and a real strategy to set the company up for success. When looking through different companies websites, it’s important to set off on a good foot and have a strong mission and vision statements and make it clear what the objective of the company is so the customer has a clear idea of what they are being sold on from the very start. There are many differences between a single-business and a multi-business strategic planning for companies when they utilize strategic planning. You can tell when it comes to even the words single versus multiple that when you are looking at a single-business strategic plan it’s going to most likely be less complicated would be more straight forward. In regards to multi-business strategic planning you have to be able to look at multiple aspects such as if this were a franchised company and the many aspects you would have to consider in this aspect. In regards to businesses within the international marketplace, a strategic plan would need to include new factors such as considering the legality business aspects of working within an international marketplace and understanding the differences within other countries when conducing a write up of a business strategic plan. Developing a strategic plan will always be easier to complete versus actually acting on the strategic plan which is something that you could consider really a rule within life itself. It’s easier to say you will do something than acting on it. Once a strategic plan is acted on, there could be unforeseeable problems that come into play and then the plan would possibly need to be altered.
Respond to Topic 1 & 2
- Create a written response (250 word minimum) debating the facts related to strategic planning.
- Identify the pro’s of your fellow learner’s assessment of strategic planning.
- Using a minimum of one peer-reviewed research resource in each answer response to build on the knowledge in your fellow learner’s essay.
- Identify the con’s of your fellow learner’s assessment of strategic planning.
- Using a minimum of one peer-reviewed research resource, explain the strategy concepts the topics might have missed covering the topics of strategic planning in the essay.