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The Strategic Planning Process

A discussion on strategic planning methodologies and their impact on business success.

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    The Strategic planning process • Background • Strategy plan defined , • According to Keller ( 2009 ), a strategy plan is a business approach to a given competitive moves that are designed to generate a success outcome or strengthen the organizations competitive position in the local or the global market . • In a global health care organization therefore , the organization management should cross check the global completion and analyze the organizations Strengths, Weakness, Opportunities and Threats which is an internal strategic plan that is focused on accessing the organizational internal abilities like finance, technological abilities etc . • Strategic plan also involves an organization to come up with its mission and objectives and work after those objectives and mission . The mission expresses a form of a mission statement, that conveys a sense of purpose to employees and shows a company image to customers . In the strategic plan formulation process, the statement portrait in the mission sets the mood of where the organization should go . • Objectives are target goals that the organization seeks to reach, example, an earnings growth of 6 % at the end of one year . The objectives should be quite challenging but achievable and realistic

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    Strategic planning process • It mostly involves, • D efining the business and stating the organisation mission by providing clear view of what the organization is determined to accomplish in the long run by taking the business current position in the global market and reflecting the management visions on what the organization want to be in the global market. Designing on how to convert the missions into performance target. • Setting up strategic financial performance objective and tracking , the business is expected to track the performance of the operations over a given period of time to access the progress and determine whether it is moving towards achieving the missions. By increasing the market share through investing in expansion and building up a customer relations management to improve the market, focusing much in new product development and setting up strategies that aims at attaining lower overall costs. • Setting up a viable comprehensive competitive strategy for achieving the set objectives which are basically meant to attract more customers, withstand competitive pressure and strengthen the organization’s market position. The major competitive strategies includes; overall low cost leadership strategy, broad differentiation etc.

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    Situational analysis external environment • Once the firm has specified its objectives and its mission and it becomes satisfying, it begins with its current and recent situations to devise a strategic plan to reach those objectives set. Upcoming c hanges in the external environment are often the present new opportunities and new ways to reach the objectives. The firm’s environmental scan mostly is performed to identify the available opportunities in the environment. The organization must also know its own capabilities or strengths and limitations in order to select the best opportunities that it can pursue or undertake with a higher probability of success. This means situation analysis will in most cases involve an analysis of both the external and internal environment. • Mission objectives situational analysis • The external environment has two aspects, that is, the macro - environment that affects all organizations and a micro - environment that affects only the firms or organizations in a particular specified industry. The macro - environmental analysis involves political, economic, social, and technological factors and sometimes is referred to as a PEST analysis. • A very important aspect of the micro - environmental analysis is the industry in which the firm operates or is planning and considering operating in. Mike Porter came up with a five forces framework that is useful for industry analysis. The 5 forces include barriers to entry, bargaining power of customers and as well suppliers, substitute products, and rivalry among competing firms in the market.

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    Analyzing external environment • This involves analysis that provides information on everything external to the organization that can influence it, but it not be cannot changed. The analysis of the environment focuses on 4 components: • Clients : it is essential that the health organization( HO ) identify its clients and what they expect. They should be categorized using the criteria appropriate to each case (technological, racial, etc.). It may be of interest to include in the client segment other bodies relevant to the HO setting, such as the management or the clinical services that refer patients or receive them. • Competitors : they must be keenly identified and analyzed to know what features distinguish them from the HO and what else makes them better or worse than the HO. Health care competitors are a major source of learning for the organization. • Providers : the HO should characterize and differentiate their suppliers or providers, which are the source of necessary goods and services and also have a significant influence on the quality and cost of the services provided. Providers occupy a significant position in the production place when in good collaboration with their clients that establish long - term partnerships that benefit both parties. • Owners : refers to the people, company or government body, public or private with ownership share of the HO. HO must clearly identify and understand objectives, requirements, activity to deal with expectations.

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