Strategic Planning for Business Success
Added on 2020-02-24
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Student NameSTRATEGYAND ITS IMPORTANT TOBUSINESSES NOT-FOR-PROFITORGANISATIONS
ContentsIntroduction......................................................................................................................................2What is strategy and why is it important for businesses and not-for-profit organizations..............2Planning Future Growth and Product Development....................................................................2Identification of Strengths and Weaknesses................................................................................2Skills & Knowledge development...............................................................................................3Planned Resource allocation and utilization................................................................................3Internal and external Environmental influencing factors.............................................................3Internal Environmental Factors................................................................................................3External Environmental Factors...............................................................................................3What challenges do organizations face in trying to develop and implement a strategy?................4Development................................................................................................................................4Having the wrong people in leadership positions....................................................................4Developing plan simply for the sake........................................................................................4Lack of understanding or focusing on result............................................................................4Implementation............................................................................................................................4Partial commitment to strategic plans......................................................................................5Not having the right people involved on the project................................................................5Unwillingness or inability to adopt change..............................................................................5Do you think the strategy is still a relevant concept in the modern competitive environment?......5Strategic plans act as a guide.......................................................................................................5Identify trends and opportunities.................................................................................................6Creates vision...............................................................................................................................6Conclusion.......................................................................................................................................6
IntroductionStrategy refers to a plan of action developed by individuals, groups, business, and organization for smooth operations, growth, and expansion of a business or process. With more people accessing the internet it is has become important for businesses and organizations to develop effective strategies to handle their operations[ CITATION Sek091 \l 1033 ]. Failure to adopt or develop an effective business strategy will only result in the business failing to meet competitor specification resulting customers opting alternative brands.What is strategy and why is it important for businesses and not-for-profit organizations. Strategy refers to a business’s action plan related to its product and service development and its production and market expansion. Every business must develop an action plan addressing continued product and service development as well as brand growth, diversification, and growth[ CITATION Tho06 \l 1033 ]. Five factors which must be included in a business or organizations strategic or action plan are listed below:Planning Future Growth and Product DevelopmentIt is imperative that every business retains its future vision and growth and expansion plan. This allows the business to constantly evaluate the market and competitors allowing the business to review competitor products and services and identify features the products are offering. This allows for the brand to also include those features to their future designs thus allowing them to remain competitive[ CITATION Kum12 \l 1033 ]. It also allows the brand to consider new innovativeideas by studying competitors in the market and combining their features to identify newer and more attractive features that can be infused to the brand's products or services to keep consumers interest interested in the brand's products and services. Failing to put together an innovation, development and growth planning team would result in the brand failing to deliver innovative products and services leading to self-destruct mode. This was experienced by Nokia which was once the best and most popular mobile phone brand but the brand failed to be investing in innovation resulting in the brand's sudden failure and loss.
Identification of Strengths and WeaknessesStrategic planning also requires a business or organization to be able to undertake a strengths andweaknesses evolution. This is very important as it would allow the management identify areas the business is strong in but more importantly it would allow the business identify its weaknesseswhich can be reviewed to determine solutions[ CITATION Hil07 \l 1033 ]. One of the major concernslinked to many businesses is the failure to analysis, identify and accept their weaknesses. This results in business owners turning a blind eye towards the weakness which gradually disrupts thebusinesses operations leading to a sudden and serious failure. Identifying and understanding the weaknesses allows the business to work on solutions which help overcome the weakness, in turn,making the business more stable and strong.Skills & Knowledge developmentStrategic development plans must put in place the organizations as well as its staff's developmentneeds. Only focusing on the business or organizations needs and ignoring staff needs would result in losing employee confidence which in turn will result in a high employee e turnover rate.This makes it important for the business to take into business to develop strategic plans which focus on familiar growth for all stake holders as well as offer the opportunity to build and learn new skills and knowledge. Skill and knowledge development among the staff is very important as many may not only be motivated by financial income and may also desire additional learning and skill development[ CITATION WBP07 \l 1033 ]. By acknowledging their interest a business can win their confidence which would help the business develop more stable strategic and growth plans.Planned Resource allocation and utilizationRaw materials and Resource are the most crucial element of any business. Every business depends heavily on raw materials, energy, utilities or man power which is all classified as resources. This makes it critical for the business to carefully plan its resource allocations and usage to prevent over use and wastage which could compromise operational plans. Resources must be evenly allocated and utilization plans developed to ensure even distribution and use of the resources throughout the year or until the resources can be replenished. Lack of planning results in resource exhaustion between projects which result in the forced closure of operations till resources are replenished[ CITATION Car08 \l 1033 ]. The same applies to human resource
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