Strategic Planning's Impact on Organizational Goals (BBA 102)

This essay delves into the critical relationship between strategic planning and organizational goals, emphasizing its importance for business success. It highlights how strategic planning provides a framework for decision-making, fosters innovation, and drives profitability. The essay uses examples like Shaukat Fabrics and Khaadi to illustrate the benefits of strategic planning in achieving both short-term and long-term objectives. It also acknowledges potential challenges and pitfalls, such as the failure of Compaq to adapt to market changes, underscoring the need for managers to articulate their strategies and proactively plan for the future. The essay concludes by reinforcing the significance of strategic planning as a tool for organizational success, regardless of the business's size or industry, and references relevant academic sources to support its arguments.

BBA 102 Principles of Management
S2 - essay
Word Count: 1157
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The relationship between strategic planning and the organisational goals is vital.
“Strategic planning is believed by many to provide a means of preparing for the
future, to organize both thoughts and direction, and to mobilize action” (Malvina and
Ann, 2014, p. 274). Also, strategic planning tools are used frequently in an
organisation. This results in how the strategic planning holds an importance in an
internal part of the organisation to achieve the short term and long-term goal.
Correct engagement of managers in strategic planning helps to achieve its
organisational goals. A manager’s job plays a critical role in achieving the goals of a
firm. It can be done through various ways including helping employees, internal
communication, implementing new ideas, organize and most importantly strategic
planning. Strategic planning consists of managers setting out a vison for an
organisation allowing it to follow a direction to overcome arising issues. It contains a
rigorous and a costly procedure to analyse where the business projects itself to be in
the coming years and the task required do so. Strategic planning gives the structure
to settle on everyday choices that take after a bigger vision, aiding in creating a
successful business, increasing profits and any set organisational goals. “Formal
strategic planning and planning flexibilities may contribute to a firms’ ability to
innovative and profit” (Clay, Justin and Donald, 2014, p. 2000).
Planning is important, as it divides the work in a proper manner which can be further
related to efficiency. It ensures that the company is on the right track with their goals.
But in the modern world it is required to know how to organise our resources to
achieve the desired results which is called strategic planning.
(AG, 2018). There are many advantages in establishing organizational goals as it
justifies a company’s activities and existence, define performance standards, the
efforts of the employees and behavioural incentives. Businesses benefit greatly
through the use of strategic planning. It allows for them to have a vision to follow and
an outline to continue as the business cycle progresses. Shaukat Fabrics, an
emerging business have successfully implemented and benefited through the use of
strategic planning. As the business began to grow, the firm had a previous vison and
guideline to follow allowing it to stay on track. This helped as it had moved from an
emerging to established business (Michael et.al, 2011).
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More and more organizations are being established in this contemporary business
environment. As the number of organizations in the market increases, the
competition between them also increases rapidly. Through strategic planning, these
types of hardships can be overcome. With correct knowledge and planning, a
business is able to plan and model to overcome arising issues. Strategic planning
involves establishing a vison and mission, establishing a grand strategy, formulating
a strategic plan, carry the plan successfully and maintain the strategic control and
plan. Bayer crop science specialises in creating medicinal products (Baumann).
Being in business since 2002, it has experienced growth and changes. With rapid
changes in technology an increased demand, the business relies heavily in its
strategic plan. The plan allows the business to follow on daily activities, contributing
to a larger outcome. By following its plan religiously, it has successfully increased its
group sales by 1.5% over the 2017 financial year. (Jun et.al, 2002)
Planning is a fundamental task as it empowers the relationship to set targets and
choose how to deal with upcoming objectives. It involves a rigorous task of portrayed
a business’s future. With correct implementation it can positively benefit all aspects of
the business and its organisational goals. In today’s society, the business world is
considered to be changing at a speedy rate. Khaadi is a multinational Pakistani
clothing fashion brand which was established in 1998 with only one outlet store.it
specializes in hand woven techniques (Bloomberg.com, 2018). There clothes were
so admired by the people that within the first two weeks they were out of stock and
they had to shut down their shops. Chris Bradley and Angus Dawson of McKinsey
reported in October 2013, “Examining how strategies are created, implemented, and
executed is a relatively recent practice.” As the business worlds progress, so does
the required planning and emerging new firms must adapt to the new style. Khaadi
being recently established followed this concept. Now, by the use of his strategic
planning of the future he was able to capture the big chunk of the market. Even it has
opened its retail outlets internationally which makes it more recognised brand. They
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are always up to date regarding the new trends, technology , new ventures etc and
these are the reasons behind its success.
Some managers are unable to articulate what their strategy is as well as their firms
target, hence the importance of strategic planning arises. Some organisations are so
concerned with their daily targets, they fail to judge the upcoming future. As we know
there are many businesses which failed. There can be various reasons behind that
but amongst them one is strategic planning as well. We can see Compaq as an
example. It was one of the biggest suppliers of the pcs back then in 1990s. Whereas
in 1986 it makes to Fortunes 500 by making a world record in 1986. After few years
its demise started because of ill planning of the future. They were not able to cope
with the real world. They didn’t know how to balance the demand and the supply,
usually they end up with a lot of excess inventory and changing of pricelist. This
started eating the profits of Compaq. It was below its high debts but then in 2002 a
company called Hewlett-Packard acquired it all.
“It would be very difficult to find a company CEO or a department manager who
did not acknowledge the need for strategic planning when making major
decisions about company policies or when contemplating large
‐scale directional
change.” (Emerald Publishing) Unless a strategic plan is ready, managers may not
be able to correctly focus on their targets. We can use Qantas as an example of a
company which failed to react quickly to virgin, Sony to Apple and GM to Toyota. We
all know that a poor plan can direct you in the wrong direction. Some of Australia’s
largest firms including Qantas, Virgin and international giants Sony, Apple GM
Motors and Toyota have all implemented the use of strategic planning for their
respective benefits. This has allowed to stay in competition and continue to grow
profits, regardless of competition.
The use of strategic planning is beneficial to all firms. It is clearly evident it can have
great benefits to all business regardless of scale. With correct and proper
implementation business can aid by having a vison for the business. Strategic
planning has been used as an effective tool for periods, and its outcomes have been
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effectible shown worldwide. As a tool strategic planning can achieve organisational
goals and allow for a business to succeed.
Reference List
Song, M., Im, S., Bij, H., and Song, L. (2011), “Does Strategic Planning Enhance or
Impede Innovation and Firm Performance?”, The Journal of product innovation
management, Vol. 28, pp- 503-520
Xi Wu, J., Cheng, X., Xiao, H., Wang, H., Yang, L., Ellis, E. (2002), Agricultural
landscape change in China's Yangtze Delta, 1942–2002: A case study, Agriculture,
Ecosystem and Environment, Volume 129, Issue 4, February 2009, Pages 523-533
Klag, M & Langley, A 2014, ‘Critical junctures in strategic planning: Understanding
failure to enable success’, Organizational Dynamics, vol. 43, pp. 274 – 283.
AG, B. (2018). Fiscal 2017. [online] Bayer.com. Available at:
https://www.bayer.com/en/2018-02-28-financial-news-conference.aspx [Accessed 5
Sep. 2018].
Bloomberg.com. (2018). Terms of Service Violation. [online] Available at:
https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=261571032 [Accessed 5 Sep. 2018].
(2012) "Better strategic planning: Managing change and planning for the future
require both vision and strategy", Strategic Direction, Vol. 29 Issue: 1, pp.30-
32, https://doi.org/10.1108/02580541311285410
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