The utility of strategic planning is an interesting question ask with very little research done on the various aspects that could impact the utility such as size of the organization, context of the environment, adaptability, etc. For the case of JustSave, the benefits and utility of planning strategically would appear to be apparent due to their competitive advantage being not in pricing or location but rather through a differentiation in culture compared to their competitors. Armstrong (1982) evaluated the value of formal strategic planning and while his evidence is rather murky, he proposes a model that is useful in taking on a formal strategic planning process. Boyd (1991) evaluated the link between strategic planning and financial performance
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However, when using Armstrong’s (1982) model, it may be clearer that organizational culture might be an easier endeavor rather than changing up an entire distribution process. In his model, we start with specifying objectives, moving to generating strategies, evaluating the strategies, and then monitoring those results. Meanwhile, we seek commitment there all the various stakeholders. In JustSave’s case, organizational culture was the strategy that was evaluated as most viable, but they did not move to the next step which would be having a method of monitoring the results over time. I find that Armstrong’s model is helpful in conceptualizing the TPS and other process maps in the context of strategic planning. It also provided usefulness despite his lack of solid statistical analyses as it allowed us to understand the formal strategic planning initiatives might not be fully understood without a measurement system in …show more content…
Of the performance measures that Boyd looked at, earnings growth, sales growth, and return on investment had significant effect sizes related to performance planning the overall effect on planning on performance was weak which could be because formal strategic planning is not all too beneficial or because of the data collection methods of the analyzed studies was poor. Relating this to JustSave is overall a bit difficult. They operate in a relatively stable environment where dramatic changes rarely happen so strategic planning with focus on the nuances between them, the competition, and the environment. However, I could foresee this being a benefit in the value of strategic planning is there would not be as many extraneous variables that could decrease the value of planning and a turbulent
However, when using Armstrong’s (1982) model, it may be clearer that organizational culture might be an easier endeavor rather than changing up an entire distribution process. In his model, we start with specifying objectives, moving to generating strategies, evaluating the strategies, and then monitoring those results. Meanwhile, we seek commitment there all the various stakeholders. In JustSave’s case, organizational culture was the strategy that was evaluated as most viable, but they did not move to the next step which would be having a method of monitoring the results over time. I find that Armstrong’s model is helpful in conceptualizing the TPS and other process maps in the context of strategic planning. It also provided usefulness despite his lack of solid statistical analyses as it allowed us to understand the formal strategic planning initiatives might not be fully understood without a measurement system in …show more content…
Of the performance measures that Boyd looked at, earnings growth, sales growth, and return on investment had significant effect sizes related to performance planning the overall effect on planning on performance was weak which could be because formal strategic planning is not all too beneficial or because of the data collection methods of the analyzed studies was poor. Relating this to JustSave is overall a bit difficult. They operate in a relatively stable environment where dramatic changes rarely happen so strategic planning with focus on the nuances between them, the competition, and the environment. However, I could foresee this being a benefit in the value of strategic planning is there would not be as many extraneous variables that could decrease the value of planning and a turbulent