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The Strategic Planning Process - Document preview page 1

The Strategic Planning Process - Page 1

Document preview content for The Strategic Planning Process

The Strategic Planning Process

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

Christopher Lee
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The Strategic Planning Process - Page 1 preview imageThe Strategic planning process•Background•Strategyplandefined,•AccordingtoKeller(2009),astrategyplanisabusinessapproachtoagivencompetitivemovesthataredesignedtogenerateasuccessoutcomeorstrengthentheorganizationscompetitivepositioninthelocalortheglobalmarket.•Inaglobalhealthcareorganizationtherefore,theorganizationmanagementshouldcrosschecktheglobalcompletionandanalyzetheorganizationsStrengths,Weakness,OpportunitiesandThreatswhichisaninternalstrategicplanthatisfocusedonaccessingtheorganizationalinternalabilitieslikefinance,technologicalabilitiesetc.•Strategicplanalsoinvolvesanorganizationtocomeupwithitsmissionandobjectivesandworkafterthoseobjectivesandmission.Themissionexpressesaformofamissionstatement,thatconveysasenseofpurposetoemployeesandshowsacompanyimagetocustomers.Inthestrategicplanformulationprocess,thestatementportraitinthemissionsetsthemoodofwheretheorganizationshouldgo.•Objectivesaretargetgoalsthattheorganizationseekstoreach,example,anearningsgrowthof6%attheendofoneyear.Theobjectivesshouldbequitechallengingbutachievableandrealistic
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The Strategic Planning Process - Page 2 preview imageStrategic planning process•It mostly involves,•Definingthe business and stating the organisation missionby providing clear view of what the organizationis determined to accomplish in the long run by taking the business current position in the global market andreflecting the management visions on what the organization want to be in the global market. Designing onhow to convert the missions into performance target.•Setting up strategic financial performance objective and tracking, the business is expected to track theperformance of the operations over a given period of time to access the progress and determine whether itis moving towards achieving the missions. By increasing the market share through investing in expansion andbuilding up a customer relations management to improve the market, focusing much in new productdevelopment and setting up strategies that aims at attaining lower overall costs.•Setting up a viable comprehensive competitive strategyfor achieving the set objectives which are basicallymeant to attract more customers, withstand competitive pressure and strengthen the organization’s marketposition. The major competitive strategies includes; overall low cost leadership strategy, broaddifferentiation etc.
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The Strategic Planning Process - Page 3 preview imageSituational analysisexternal environment•Once the firm has specified its objectives and its mission and it becomes satisfying, it begins with its currentand recent situations to devise a strategic plan to reach those objectives set. Upcomingchanges in theexternal environment are often the present new opportunities and new ways to reach the objectives. Thefirm’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 bestopportunities that it can pursue or undertake with a higher probability of success. This means situationanalysis will in most cases involve an analysis of both the external and internal environment.•Missionobjectivessituational analysis•The external environment has two aspects, that is, the macro-environment that affects all organizations anda micro-environment that affects only the firms or organizations in a particular specified industry. Themacro-environmental analysis involves political, economic, social, and technological factors and sometimesis referred to as a PEST analysis.•A very important aspect of the micro-environmental analysis is the industry in which the firm operates or isplanning and considering operating in. Mike Porter came up with a five forces framework that is useful forindustry 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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The Strategic Planning Process - Page 4 preview imageAnalyzing external environment•This involves analysis that provides information on everything external to the organization that caninfluence 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. Theyshould be categorized using the criteria appropriate to each case (technological, racial, etc.). It may be ofinterest to include in the client segment other bodies relevant to the HO setting, such as the management orthe clinical services that refer patients or receive them.•Competitors: they must be keenly identified and analyzed to know what features distinguish them from theHO and what else makes them better or worse than the HO. Health care competitors are a major source oflearning for the organization.•Providers: the HO should characterize and differentiate their suppliers or providers, which are the source ofnecessary goods and services and also have a significant influence on the quality and cost of the servicesprovided. Providers occupy a significant position in the production place when in good collaboration withtheir 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 theHO. HO must clearly identify and understand objectives, requirements, activity to deal with expectations.
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Business Management

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