Strategic Opportunities and Constraints in Planning

The report states making and implementing strategic planning for the growth of the organisation in the future. It contains the opportunities and constraints that the Board and the Executive Management face while planning the strategies for the future development and effective functioning of the organisation. It states the impact of these opportunities and constraints on the planning for the proper implementation of the organisation vision.

Running head: STRATEGIC OPPORTUNITIES AND CONSTRAINTS MANAGEMENT
FACES IN PLANNING
STRATEGIC OPPORTUNITIES AND CONSTRAINTS MANAGEMENT FACES IN
PLANNING
Name of the Student
Name of the University
Author Note

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STRATEGIC OPPORTUNITIES AND CONSTRAINTS MANAGEMENT FACES IN PLANNING
Executive Summary
The report states making and implementing strategic planning for the growth of the organisation
in the future. It contains the opportunities and constraints that the Board and the Executive
Management face while planning the strategies for the future development and effective
functioning of the organisation. It states the impact of these opportunities and constraints on the
planning for the proper implementation of the organisation vision.

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STRATEGIC OPPORTUNITIES AND CONSTRAINTS MANAGEMENT FACES IN PLANNING
Table of Contents
Introduction......................................................................................................................................3
Critical analysis when planning strategically for an organisation's future......................................3
Strategic opportunities considered while planning about future strategic direction....................4
Limitations while planning the future strategic direction............................................................6
Its impact on planning in the strategic direction for an organisation's future..............................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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STRATEGIC OPPORTUNITIES AND CONSTRAINTS MANAGEMENT FACES IN PLANNING
Introduction
The essay aims to include the analysis of the strategic planning in developing, controlling
and maintaining a balance between the organisational goals and the available resources in the
competitive market. An effective organisation has several strategies that are aligned with each
other for the growth of the organisation. It highlights the opportunities considered by the Board
and the Executive Management when planning the strategic direction for the future of the
organisation. The product development, cost leadership, external environment, and digital
strategies are the opportunities that are considered while creating the strategic plan of the
organisation. The constraints or limitations hinder organisational growth and countermeasures
and strategies for efficient management. The report states the constraints faced by the
management while implementing the strategies for the effective working of the organisation. The
constraints include time, resource, budget, technology, incomplete data and lack of leadership.
The report also includes the impact of these opportunities and constraints collectively in the
strategic planning and implementation process for the future direction of the organisation. It
states that the actions must be taken for the proper implementation of the organisation vision that
accelerates the growth of the company.
Critical analysis when planning strategically for an organisation's future
The organisation needs strategies for its growth and development as well as to sustain
that continuous growth. The formulation of a strategic plan is a key component that helps in
planning the vision for the operational expansion of the business for the future. The strategic plan
helps in preparing realistic and achievable goals and objectives that measure the timelines,
progress, and budgets in maximising the potential growth of the business (Grant, 2016). The

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development of an organisation involves many decisions taken by the Board and the Executive
management for the organisational business growth.
As opined by Bryson (2018), strategic planning is the disciplined effort required to
produce the first action and decision, which gives shape and guidance about the organisation
structure and reason for its operations. The purpose of strategic planning is to set a goal or an
objective for the business and make a plan to achieve it from day-to-day business operations. The
role of the Board Members and the Executive Management is to achieve the goal by planning
strategically, either annually or for a long period of three to five years by considering the size,
complexity, and availability of the resources in the organisation (Elbanna, 2016). The
management faces several strategic opportunities and constraints while planning the future of the
organisation.
Strategic opportunities considered while planning about future strategic direction
The Board and the Executive Management considers several opportunities when planning
about the strategic direction for the effective working of the organisation. These strategies
include the diversification and differentiation of the existing as well as the new products in the
potential market (Ginter, Duncan, & Swayne, 2018). The cost leadership strategy is taken into
account to have a competitive advantage of lowest production cost in the industry and is the most
important factor in the customer decision-making process. The external environmental factors
will analyse the organisation's capabilities to adopt the sudden and environmental changes that
will determine its sustainability (Bolisani & Bratianu, 2017). The digital strategy will focus on
technological innovation for business performance improvement and have a competitive
advantage over its competitors. These are as follows:

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1. Product Development Strategy: This strategy helps in creating a new product or
services and modify the existing one to increase sales. It implies the production factor
that is critical for the success of the product diversification and differentiation (Chang,
2016). The diversification strategy focuses on extending the product lines and the
company's operation in the different potential market. It helps in improving flexibility
and maintaining a profit during the stagnant economic period. The differentiation strategy
focuses on creating a uniqueness or continuous innovation in the product to have a
competitive advantage over its competitors. The product strategy formulated is for the
complete lifecycle of a product that usually involves the research and development
expenditure.
2. Cost Leadership Strategy: This strategy means having a similar product but at a lower
cost to have an advantage of leadership in the competitive market. This strategy makes it
difficult for new companies to enter the market with a very thin profit margin. It is the
result of the company's size, efficiency, scope, scale and accumulated learning experience
(Narikae, Namada & Katuse, 2017). This strategy aims for a well-defined scope, the
large scale of production and other factors such as producing high standards products,
good purchasing strategy and using modern technologies. For example, Walmart offers
everyday low pricing strategy as well as a cheaper rate when compared with its
competitors to attract its customers.
3. External Environment Strategy: Scanning the environment is considered an important
factor in the process of strategic planning. The important external environmental aspects
include the demographic, climatic conditions, political, media, technology, legal,
economic condition and market competition (Khan & Khalique, 2014). The business

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must be flexible to adapt and respond to any changes if required. It must focus on
identifying the changes as soon as possible and take immediate action. For example, the
changes in the economic condition are reported daily in the news channel or media that
gives the business managers to develop a strategic plan accordingly.
4. Digital Strategy: This strategy focuses on the application of digital technology in the
business model for improving the performance of the organisation. It aims at continuous
innovation and digital transformation for the creation of new products or modifying the
existing one (Matt, Hess & Benlian, 2015). It includes the different tactics used by the
organisation is achieving the technological changes. For example, most of the sales of
Dominos come from digital channels. Therefore, it has made efforts to make its
customer’s experience as fun as possible by introducing Dom the Pizza bot. It allows the
customers to order online using their voice through Facebook Messenger (McCarthy,
2016).
Limitations while planning the future strategic direction
The Board and the Executive Management faces several constraints while formulating
future strategies for the effective working of the organisation. The constraints are the limitations
that hinder the growth of an organisation and considers the alternative work courses, and
strategies for better management. The management needs to understand these constraints or
barrier that prevent the successful implementation of the strategic plan (Trigeorgis, & Reuer,
2017). The following are the constraints that require attention before strategic plan
implementation:
1. Resource: The strategic plan created by an organisation might be great, but scarcity in
resources to execute the plan can be a problem. The availability of resources such as

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adequate raw materials, capital, workforce, etc. are essential for the development of new
product or services in the implementing strategy. Lack of proper availability of the
resources impacts the talent acquisition, marketing, and distribution program.
2. Time: Sometimes the time allocated for the completion of the project is not met due to
environmental changes in the plan. The creation of the strategic plan may not involve the
realistic time allocated for the completion of the project (Vishnevskiy, Karasev &
Meissner, 2016). The vision of the project may be designed in a way that it is impossible
to reach the objectives within the given period.
3. Budget: The availability of insufficient fund even after the approval of the budget is
another serious constraint in many countries. Every step in the strategic planning involves
the proper allocation of the budget. For example, it is common that the farmers or labours
are awaited for their wages after they have completed their seasonal work.
4. Technology: The adoption of the latest technology requires an adequate amount of
funding for the execution of the strategy. Latest technology helps in creating new things
and is required by the organisation to manufacture, distribute and sell the product or
services. The strategy should be formulated to bring innovation in the existing product or
services.
5. Inadequate Data: Some research involves primary data while others are secondary. The
availability of primary data in the research work is inadequate or not precise. The
secondary data available may not be reliable sometimes.
6. Lack of leadership: The leader must not only develop the strategy but also explain the
vision briefly to the members to achieve the goal. The leader must motivate the team
members for achieving the new vision and execute the new strategies (Kerzner, 2019).

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7. Quality of Employees: It is one of the most important factors for the growth of the
organisation. The availability of the required number of social force with the appropriate
skill is necessary for achieving the business objective.
8. Availability of supply: The business depends on the availability of the resources in the
market for executing the strategic planning for the organisation and bring continuous
innovation in the product and services in the competitive market.
Its impact on planning in the strategic direction for an organisation's future
The strategic planning aims at developing a blueprint for business growth. The vision
created by the Board and the Executive management is for a larger and profitable company. The
action must be taken for the proper implementation of the organisation vision and must
accelerate the growth of the company. The principle of effective planning is based on the current
performance of the organisation (O'Neill, 2018). The growth of the business depends on
grabbing the opportunities of increasing the customer base and the market share. The strategic
plan helps in preparing realistic and achievable goals and objectives that measure the timelines,
progress, and budgets in maximising the potential growth of the business. The mindset of
creative thinking helps in planning to seek out the continuous emerging market for the existing
product or services, encouraging innovation, developing new products or services of the
organisation. For maximising the revenue, the resource of the business must be fully utilised.
Planning involves the proper implementation and utilisation of the company's resources such as
people, capital, brand recognition and productive capacity in the best manner (Mui, Basit &
Hassan, 2018). The strategic plan includes the information required for prioritising the
expenditures and allocating the resources properly in the competitive market. A critical
evaluation of all the functional and operational business areas is made to determine the area of

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improvement. The continuous improvement will help in increasing the loyal customer base of the
company that ultimately, leads to an increase in profit. The coordinated efforts among all the
organisational members help in achieving the vision by working together in harmony. The goals
and objectives set by the management are communicated to every employee (Valentine &
Hollingworth, 2015). Each member work in a cooperative manner to reach the goal in the given
time. The coordination among the members not only helps the company to grow in the given
time but also accomplish more. The company that identifies the customer need are growing
rapidly with continuous innovation and digital transformation in its products and services. Thus,
a proper strategic plan helps in taking the effective decision for organisational growth and have a
competitive advantage over its competitors.
Conclusion
Every managerial functions and action begin with the process of decision making. Thus,
it is considered an exceptional management practice. The decision making process should be
focused on accomplishing the goals and objectives of the organisation. The decisions initiate
actions, accept or reject the proposition and effect changes. The Board and the Executive
Management are the active element that helps in giving direction to the organisation along a
chosen path. The role of these top management is to create a strategic decision that helps in
shaping the organisation future. They use their skills and knowledge in formulating the strategic
vision under the probability and uncertain events. The opportunities and constraints faced have
several impacts on the functioning of the organisation in the competitive market as well as in the
future market. These impact of the opportunities and constraints collectively depend upon the
strategic planning and implementation process for the future direction of the organisation. The

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actions must be taken for the proper implementation of the organisation vision that accelerate the
growth of the company.

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Reference
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