Companies big or small all have a vision. There is a purpose for their existence and they have goals they must accomplish in order to be successful. In order to achieve those goals there must be a plan. Strategic planning happens in all types of business. It is a crucial element that if not done correctly, or not monitored could be the reason for a failing company. A company develops a strategic plan in the beginning but as time goes on it can change. This paper will go over the major concepts that involve strategic planning. As well as what challenges a manager faces when implementing organizational change, and how companies can face unplanned changes. Along with that it describes what a SWOT analysis is, and how to use one to analyze a company.
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An example of this would be a company cutting cost by improving waste of materials to increase profits. Another strategy to pursue would be a differentiation-based advantage (Gamble, Thompson 2011). This is where a company makes their selves stand out to consumers, and offers a different service or product than their competitors. Another way to keep a competitive advantage is for a company to find their niche in a smaller market. There may be a market that has not been dipped in by anyone else yet. There would be a need for a product or service, but it is so small that larger companies have not bought in yet. A starting company could specialize in this small market, with less competition (Gamble, Thompson 2011). Some companies have been in business so long that they have gathered resources and capabilities that other companies cannot compete against. After having a vision and developing the objectives the business needs the biggest part of strategic planning is figuring out what to do to get there. That is when the culture of the overall company should be developed (Fairhol, 2009). Actions develop behaviors, and that is why the strategy is very important. The strategy is what actions the company is going to make to achieve their objectives (Gamble, Thompson 2011). After these things have been set there must be an evaluation. This would be the overall performance to see if the strategy is increasing
An example of this would be a company cutting cost by improving waste of materials to increase profits. Another strategy to pursue would be a differentiation-based advantage (Gamble, Thompson 2011). This is where a company makes their selves stand out to consumers, and offers a different service or product than their competitors. Another way to keep a competitive advantage is for a company to find their niche in a smaller market. There may be a market that has not been dipped in by anyone else yet. There would be a need for a product or service, but it is so small that larger companies have not bought in yet. A starting company could specialize in this small market, with less competition (Gamble, Thompson 2011). Some companies have been in business so long that they have gathered resources and capabilities that other companies cannot compete against. After having a vision and developing the objectives the business needs the biggest part of strategic planning is figuring out what to do to get there. That is when the culture of the overall company should be developed (Fairhol, 2009). Actions develop behaviors, and that is why the strategy is very important. The strategy is what actions the company is going to make to achieve their objectives (Gamble, Thompson 2011). After these things have been set there must be an evaluation. This would be the overall performance to see if the strategy is increasing