Strategic Planning to Improve Governance - Formal Report

This report delves into the concept of strategic planning and its application to improving governance within organizations. It highlights the importance of strategic management as an ongoing process involving planning, analyzing, monitoring, and evaluating organizational necessities to achieve goals. The report uses Red Hot Penny, a digital services company, as a case study to illustrate these concepts. It details the strategic planning process, including defining mission and objectives, environmental analysis, self-appraisal, strategic decision-making, and strategy implementation and control. Furthermore, it discusses different types of strategic planning such as transactional, transformational, and revolutionary transformational planning, emphasizing their uses in internet and digital marketing. The report also touches upon the implementation of strategies using the McKinsey 7S model, focusing on both hard and soft elements crucial for sustaining a competitive advantage in the market, particularly in the context of pandemic conditions.

Strategic Management &
Leadership

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Strategic planning concept..........................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The term strategic leadership and management is an ongoing process which include
planning, analysing, monitoring and evaluating all necessities related with organisation for
accomplish organisation goals and objectives. Change among business requirements is one of the
most important factor and this is require by management for induce appropriate strategies related
with business success. The primary purpose of strategic management process is to understand
existing market situation and circumstances, formulation of strategies, implement of strategies
and then to check the effectiveness of new implemented management strategies (Amrollahi and
Ghapnchi, 2016). The selected organisation for this report is Red Hot Penny which perform work
in the digital industry and the primary focus of organisation is to provide systematic digital
services for identify new number of customers. MISSION of organisation is to offer expert
services to acquire customer within business. VISION of authorities is to become an E-
commerce retailer which support to identify and acquire new customers. Management planning
is based on strategic concept and this around organisation mission, vision, etc. where it wants to
be in future, along with values which guide organisation actions and activities in an organised
manner. Moreover, this report highlights on the strategic planning concept and also match this
with individual thoughts and ideas. The purpose to understand strategic management and
leadership is to develop the overall productivity of organisation through managing and
controlling all resources in order to relate them with new ideas and thoughts.
MAIN BODY
Strategic planning concept
The term strategic planning is an art to formulate or create specific business strategies,
implement them and evaluation of organisation results in order to execute accurate and
appropriate plan which aids business to accomplish organisation goals and objectives (Andreeva
and et. al., 2019). The term strategic planning consists and integrate all departments including,
accounting, marketing, finance and human-resource within the organisation for accomplish
organisational strategic goals and objectives. Sometimes strategic planning is also known as
strategic management.
The concept of strategic planning was originally established and also became popular in
the year 1950 and 1960. Enthusiasm for strategic concept and planning is constant and this also

remains in the modern business because it is engaged in decision-making process which are
taken by upper level management. So this results strategic planning process aids the RED HOT
PENNY and its authorities to set and implement appropriate plan of actions and methods to
implement them in a strategic manner. On the other side, this is identified that strategic planning
relates with future and this involve different degree and almost each of them relates with future
(Azevedo and et. al., 2015). So this is important for respective organisation to understand and
analyse all strategic planning concept because some department require planning for long years
like, if management focus to implement internal strategies than long term plans are required
while, in case of customers small or short term plans is required as it depends on customer
requirements.
The capital expenditure relates with long-term period and this consists of all those factors
which is useful for implement strategic plans. The former strategic planning or long-term
planning is used to determine all those factors that helps to determine company objectives and
also to gather all those resources which is required for attain company objectives. Red Hot Penny
encompasses and diversify the organisation into different lines, It refers primary focus of
management is to offer those services which enhance the number of customers. Therefore, with
also offer other digital services such as marketing on social sites, to handle professional account
of business for solve the query etc. aids business to enhance their market size. Moreover, to
understand overall planning concept the process of strategic planning is mention as follow:

 To determine mission and objectives- The term strategic planning start with all those
determination factors which start with company process such as to understand mission
and vision of organisation (Babkin Alexander and Baikov Evgeny, 2016). Principle
objectives area also considered and define in a proper manner because this helps for
manage and control work according to the external environment. Business mission of
respective organisation is to offer effective digital services to small business for enhance
their market share.
 Environmental Analysis- For accomplish or identify opportunities, threats, strength and
weakness overall external environment is analysed by the organisation. One of the most
important factor related with external business is to relate current business with micro
environment because this helps to prepare all organisational activities according to
requirements of environment.
 Self-appraisal- Strength and Weaknesses of the business is analysed in the third step of
organisation. The main motive of this step is to analyse the overall strength of business
and also to minimise the number of weakness. Moreover, enterprise is focused to
accomplish external opportunities by improving the internal capabilities of business
(Chang, 2015). This aids Red Hot Penny and other organisation match their strength with
environment opportunities which helps them to achieve high-growth in business.
 Strategic Decision-making- Strategic alternative are generated as well as evaluated and
this define strategic choice is made to minimise the performance gap. Also, organisation
select all those alternatives which is used for match with capabilities of business. To
grow in the market an organisation develop new products and also identify new markets
for perform their work according to strategic decision-making.
 Strategy implementation and control- After the identification of organisation strategy
this is important for management to convert the strategies into tactical operational plans.
Budgets and programmes are developed by management for perform each function in a
proper manner. Moreover, short term operational plans are utilised by management for
utilise all resources in an organised manner. With control company operations this is also
easy for evaluate all performance by implement right strategy to use.
In the context of RED HOT PENNY, management perform their operations and functions in the
digital market. This governs that respective organisation is identified as well-known digital

agency of UK. Business culture includes the skills, competencies and organisation structure
which are most important part for business and with implement of appropriate strategies this is
easy to manage all work according to the decided objectives (Charest, Bouffard and Zajmovic,
2016). Some of the most important perspectives related with business is to develop all business
factors that helps to develop the products according to the requirements of market. Upper
management of the RED HOT PENNY generate responsible factors and this consists to use all
those factors which help management for rely on employment in order to manage work through
engage of lower-level manager in business.
STRATEGIC PLANNING AND THEIR USE
Most of the organisation perform their work with implement of appropriate and selective
strategic planning which is used for determine better and effective results related with business.
This determines management and leaders induce the strategic planning to identify the best
approach which is more effective to generate the desired and positive outcome from
organisation. Approximately, each organisation work with the aim of increasing their
performance because this will leads the management and leaders as well as business to a better
position within the competitive market. Therefore, this helps organisation for improve their
overall efficiency through identifying all those issues which reduce company performance.
Moreover, in context of modern business requirements this is identified that technology plays a
crucial role for business (Dzwigol and et. al., 2019). This results that management focus on all
those concepts which is required for use all those options that provide knowledge related with
business. Like, to select the right strategic planning organisation considered that which planning
is more appropriate for business to manage work in a proper manner. Types of strategic planning
with their use in the internet marketing and effective strategies of digital marketing are mention
as follow:

 Transactional- The transactional planning is more conservative among all types of
strategic planning and this is used for intended and sustain performance through
performing same work with better approach. With eliminating the waste and improving
the asset management an organisation is able to increase their work productivity and
efficiency. But, this is also complex to formulate an appropriate strategic planning only
on the basis of transactional. Transactional planning also work with direct approach
because this helps to manage transactions in a more appropriate manner in order to
complete task according to future trends.
 Transformational planning- This is used by the organisation for complete their work
with more direct approach as it support to face competition in a direct manner and also to
induce changes within business. With forecast overall transformational planning this is
easy for organisation to analyse and evaluate previous performance in order to look ahead
especially, to forecast future trends which impacts on company performance. Moreover,
transformational planning is more effective because this helps to create better future
through redefining industry (Gahmberg, 2014). Further, this helps for induce
revolutionary mindset in order to shape the organisational actions and activities towards
organisation goals.
 Revolutionary transformational planning- This type of planning is more bolder and
this is important or essential to formulate future through regenerating industry and
organisation advantage. Organisation embrace revolutionary mindset and this helps for
operate business with urgency as this helps to dictating the future in an easy manner.

Technology is considered as an example of revolutionary planning and this would help to
generate the advent of emails as this continuously change the method for implement
appropriate communication system.
In the context of RED HOT PENNY this is understand strategic planning perform an important
role and this is used for manage all task in a proper manner through minimise the risk and other
issue related with business. Moreover, investor also analyse the current market scenario because
a planned organisation is able to perform their work with more effectiveness (Graham and Hill,
2015). Like, revolutionary planning helps business for earn high amount of revenue because they
implement effective changes in business. Similarly, by implement of revolutionary approach this
is easy to think about future thinking organisation as this helps to adopt all those steps which are
beneficial for future success. Moreover, the selected strategies for formulation of appropriate
plan is Revolutionary planning and rational to select this is that it will help business to control
operations in the digital market.
IMPLEMENTATION OF STRATEGIES
One of the biggest task which aids organisation to perform their work at global level is to
complete the work according to decided strategy. In the context of current business organisation
this is understand that pandemic conditions impacts on overall business due to which this is
complex to sustain and retain in market. Therefore, to overcome from this upper level
management implement appropriate strategies to depict how organisation effectiveness is
achieved by use of appropriate elements related with business.
McKinsey 7S model perform an important role to implement organisation strategy
because it focus on different key elements which are important for business to retain in
competitive market (Jumaa and Alleyne, 2017). Moreover, McKinsey 7s model lies in the
interconnected of different elements and also they are categorised into two different factors
which include the Soft S and Hard S. All seven essential elements of McKinsey model are
mention as follow:
HARD ELEMENTS
 STRUCTURE- This refers to the method or way in which an organisation is organised
and the main focus to design appropriate organisational structure is to follow the
systematic actions and disciplined approach to perform overall work according to
organisational chart.

 STRATEGY- It is explained as a well-designed plan which allow an organisation for
formulate right plan of action and steps. The main focus to design right strategy is to
accomplish as well as achieve sustainable competitive-advantage as this reinforce
company values and mission in a proper manner.
 SYSTEM- This entail the enterprise or organisation and also the technical infrastructure
of the organisation and it helps to established appropriate workflow as well as chain of
decision-making through which overall organisation efforts are directed towards the same
direction (Kiba-Janiak, 2017).
 SKILLS- The term skill generate competencies and capabilities for an organisation and
this enable the workforce as well as management to accomplish their objectives with
utilise and implement right skills.
 STYLE- Senior employees and their attitude established code of conduct and this is used
for manage the work with implement of effective symbolic decision-making. This also
refers that leaders forms appropriate management style to perform all work with same
steps.
 STAFF- The term staff involve talent management and all those human-resources which
is related with company decisions. In simple terms, staff engage all those employees and
labour personnel who are engaged in company functions and aids management to achieve
company goals. SHARED VALUES- Mission, value and objectives are considered as the foundation for
each business organisation and this helps to perform work by align of all key elements
that helps to maintain appropriate organisation design.
Application of the McKinsey Model
The subjectivity surrounds among all those concepts which helps to formulate or
surround all those elements which contribute towards formulation of appropriate application
(Madsen and Scribner, 2017). Some methods to follow the top-down approach are mention as
follow: To identify all those areas which are not properly aligned- RED HOT PENNY analyse
that value, strategy, system and structure must be relate with each other in proper manner.
Also, by identify of all values this is easy to analyse and look all those gaps which breach

the relationship of this elements. Structure is used for implement the change in company
functions and operations. Determine of optimal organisation design- This is essential for consolidate about all
opinions of the top management and it is also used for formulate generic optimal
organisational design. RED HOT PENNY use organisation design to set realistic goals
and objectives because it helps to complete research in a proper manner (Malekpour, de
Haan and Brown, 2016). With implement the changes in system overall organisation
design is improved and this helps to complete deal through induce an effective
implementation plan. To decide where and what changes are required- Once outliers is identified than
management is focused to implement appropriate plan of action and this involve to
formulate concrete changes in the chain of hierarchy. Also, flow of communication and
reporting relationship helps management to accomplish an appropriate organisational
design to maximise company effectiveness for complete work in proper manner. STAFF
is responsible to induce changes and this refers that management generate plans that
helps for adopt all those changes which is required.
 To make necessary changes- The implementation of appropriate decision-strategy is to
make and break all those situations which helps company for complete all task in a
realistic manner. This also refers to set different approaches and most of them helps for
best deal with formulate of well-thought implementation plan. It enable an organisation
to manage task according to current requirements through complete task according to
right approach for implementation plan. Realistic and shared values considered towards
formulate of company process and this helps to perform work with decided situations.
McKinsey 7S model considered towards completion of all work as per the decided circumstances
and this is used for implement changes that bought organisation to manage work all work
according to shared values (Novikova, 2018). The main purpose of planning is to undertake a
merger and this will impact on the workforce because it undertakes all those factors which is
useful for manage work according to strategic decision-making. Further, 7S model deal within
the variety of situations and this helps for gain useful results by complete of work with together
approach and this is also important for improve performance because it aids to identify
appropriate way for induce right and best strategy in organisation.

Balanced Scorecard and their role in strategic management and leadership
The term balance scorecard is identified as an appropriate management system which
convert the strategic goals and functions into a set of performance. So this results it helps for
measure, monitor and implement appropriate changes if they are required to achieve company
goals and objectives. RED HOT PENNY utilise the four-pronged approach in the organisation
process and performance. With this it is easy for management to incorporates their all actions
and steps related with financial analysis such as to include metrics including operating income,
sales growth and return on the investment (Randrup and Jansson, 2020). Further, management of
respective organisation utilise the strategic planning for satisfy the needs and wants of customers
and for this top management link the company goals with strategic goals. RED HOT PENNY
provides services to their clients which assist towards identify of new market area and customers.
This aids the consumer for maximise and enhance their products sales in a proper manner.
Systems of the balance scorecard connect or inter-relate all dots with each other because
this helps for formulate the big picture as well as strategy by connect company mission (purpose
of the organisation) vision (aspiration of company), core-values (management believe) and many
more operational elements such as objectives and measures with each other. Similarly,
organisation culture of selected business helps to determine overall success and failure related
factors (Slater, 2015). Culture is also recognise as the major factor because this helps for outline
the organisation objectives, execution of task and to organise resources at the same place. This
results that management is able to motivate all employees by executing and providing all
resources according to the requirements of outlined strategies.
CONCLUSION
From the basis of above report this is concluded that strategic management and
leadership are identified as pillar of an organisation which improve overall productivity through
complete all work in an organised manner. Along with this strategic concept perform an
important role and they are used by organisation for complete their work in a proper manner
specifically, to formulate strategies according to the international market conditions. Current
strategic planning process and their methods such as transactional and revolutionary perform an
important role to improve overall business process. Along with this McKinsey model to
implement the strategies is also learned and understand from the report.