Every successful organisation has a strategy, which they implement in order to achieve their goals and accomplish their vision and mission. Not only do these organisations possess a strategy, but they also have a strategic plan which they use as a roadmap in order to execute its chosen strategy. Developing a strategic plan is complex process and hence must be coordinated. The actions taken in order to conduct this process of developing a strategic plan is known as strategic planning. The process of strategic planning lays emphasis on the vision, mission, strategy, long term goals, resources, customers, stakeholders, and also the internal- external environment of the organisation. As a result, the main purpose of strategic planning is to develop
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The corporate goal of the organisation is to feature in the top 20% of Australian listed companies based on their Return of Equity and increase the return for their shareholders. Incorporating strategic planning benefitted the organisation in the following ways:
• Credible decisions- One of Wesfarmers corporate strategy is to secure growth opportunities though entrepreneurial initiative. This did not mean that the organisation acquired any business based on intuition. The organisation set a criteria that needed to be fulfilled in order to proceed with the acquisition. Factors such as the current net present value of the potential business, its geographical location, their potential for growth and expected return on investment were taken into consideration. In addition to these, Wesfarmers themselves needed to be sure that they are capable of managing the investment and the integration of this new business. The inability to fulfil this entire criteria would mean that the organisation would not proceed with the acquisition. This organisation was able to derive this criteria as a result of strategic planning and was now capable of making credible decisions based on facts (Simerson, …show more content…
Although business and division managers were encouraged to explore new opportunities for growth, they had a budget limit of $100 000 and $1 million respectively. To get this amount sanctioned, these managers would need to justify to the corporate office how the new investment would be beneficial to the organisation. Identifying control measures for the allocation of capital was identified during the strategic planning process as an important contributor to the organisations success (Simerson,
The corporate goal of the organisation is to feature in the top 20% of Australian listed companies based on their Return of Equity and increase the return for their shareholders. Incorporating strategic planning benefitted the organisation in the following ways:
• Credible decisions- One of Wesfarmers corporate strategy is to secure growth opportunities though entrepreneurial initiative. This did not mean that the organisation acquired any business based on intuition. The organisation set a criteria that needed to be fulfilled in order to proceed with the acquisition. Factors such as the current net present value of the potential business, its geographical location, their potential for growth and expected return on investment were taken into consideration. In addition to these, Wesfarmers themselves needed to be sure that they are capable of managing the investment and the integration of this new business. The inability to fulfil this entire criteria would mean that the organisation would not proceed with the acquisition. This organisation was able to derive this criteria as a result of strategic planning and was now capable of making credible decisions based on facts (Simerson, …show more content…
Although business and division managers were encouraged to explore new opportunities for growth, they had a budget limit of $100 000 and $1 million respectively. To get this amount sanctioned, these managers would need to justify to the corporate office how the new investment would be beneficial to the organisation. Identifying control measures for the allocation of capital was identified during the strategic planning process as an important contributor to the organisations success (Simerson,