A strategic plan outlines a long-term perspective for the organization. Collect as much knowledge as you can on how to achieve your vision. In a diversified company (a company having different single-line of businesses under one umbrella), strategies are initiated at four levels. Social, political, economic and technology-driven events that are external to the organization have a bearing on the products, market and technology-related choices the organization makes. Company’s ability to create and commercialize new products. Strategic Management Plan Sample Paper. The response spans the domains of marketing, finance, operations, human relations, technology and innovation, leadership, motivation, organization, culture, design, and systems. If it is unfamiliar with such distribution methods, it can hire an external project manager to do research and implement the strategy. Is the response ad-hoc or systemic? The mid-level managers play supporting roles and do some or most of the strategy-making for their units. According to the definition provided by Thompson and Strickland, a strategy is the means used to achieve the ends. There are others. Today (2012) in Asian markets the market dominance of Japanese cars (such as Honda) is being challenged by Korean (Hyundai) and German (Volkswagen) manufacturers. In their book of 1980, Thompson and Strickland defined strategy as “the pattern of organizational moves and managerial approaches used to achieve organizational objectives and to pursue the organization’s mission. Ethics of people in the organization either as individuals or groups who are involved in developing the future direction of the organization has important implications for the stakeholders. As the head of the customer service department, you decide to hire more customer service representatives and use automated solutions such as chatbots and ticket-routing optimizers to respond more quickly to customer inquiries. The concept of strategic management got worldwide attention in the 1990s. Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organization’s internal and external environment. Alignment Alignment of goals and strategy at the organization, department, team and individual contributor levels. Your objectives should be realistic, detailed and in line with your values. Features and styling with more buyer appeal. Formulation includes assessment of the environment in which the organization operates and then creating a strategy on how the organization will operate and compete. Examples of the functional strategy include product strategy, marketing strategy, human resource strategy, and financial strategy. Sample Strategic Plans Strategy is more than simply achieving business goals. The basic principle of the strategy and policy framework is as follows; The more strategies and policies are clearly understood and implemented in practice, the more consistent and effective will be the framework for enterprise plans. A thought leader on the strategic management process was a scientist from Canada named Henry Mintzberg. Corporate strategy, for example, of Uniliver may be acquiring the major tissue paper companies in India to become the unquestionable market leader. External factors are an important consideration for an organization when it is identifying and analyzing opportunities and challenges. Innovativeness in developing new products, A strong understanding of customer needs and tastes. Strategic management definition refers to the continuous process that includes planning, analyzing, and monitoring the goals and objectives of a firm. Strategic goals, or strategy goals, are the desired outcomes of a strategy.The strategic planning process typically begins with goals as there is no point planning strategy if you don't know what you're trying to achieve. These changes lead to uncertainty and complexity in the business functioning. Upward Airlines Strategic Plan Example. It comes from strategies that lead to some uniqueness in the market place. Admission will be granted only to students who secure a minimum of 60% marks in the admission test (admission policy of a university). Implementing your strategy is the action stage of your strategic management process. Strategic management is the process of strategic analysis of an organization, strategy-focused objective-setting, strategy formulation, strategy implementation, and strategic evaluation and control. The assumptions and forecasts on which decisions are based can be checked and if needed corrected. According to the definition provided by Thompson and Strickland, the strategy is the means used to achieve the ends. This stage comprises three important tasks: identifying your short-term and long-term objectives, determining the process for accomplishing your goals and customizing the process for your staff. The capacity within the organization to implement and follow through decisions. Strategic management objectives can be defined as taking some sets of the decision, and some actions either in a group or individually and those acts determine the output of the company’s performance and those key decisions outline how rightly the strategy was executed. Phase IV joins strategic planning and management in a single process. Traditionally, the strategic plan covers more than one year. If you are undertaking this type of strategy management, you are responsible for guiding the changes that take place in in the company and managing employee morale, which can be challenging in times of change. But nowadays, because of the high speed of change in many industries, strategic plans are made even for quarterly use. Shorter lead times in developing and testing new products. Strategic management refers to the process by which organizations analyze, make decisions and take appropriate courses of action in order to create and sustain competitive advantage over their competitors and to achieve better performance. An organizational mission is a statement specifying the kind of business it wants to undertake. A company may develop an operating strategy for its sales territories. The strategic management process covers the following four steps, which are: 1. A company decides to sell its products online to increase sales. 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