FPX_5006_Ass 4 : 1 st Draft # Strategy Implementation # MBA

Strategic Planning Framework

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Strategic planning frameworks provide a platform on which an organization can premise their strategic planning and goals. The key components of a strategic are the detailed definition of objectives of the company, its specific goals, and strategies in the achievement of these goals and the measures that will be taken. This builds a vision, mission and goals for the organizations’. The goals are set on a SMART basis; that is Specific, Measurable, Attainable, Relevant and Time bound (Les Macleod, 2012). These clear definitions provide a course for the organization to follow as a team and hence achieve greater rewards.

The principal essence of employing strategic planning frameworks is the provision of a clear path in the carrying out of daily activities in any organizations. As the strategic plan harbors the reason for its existence and what its objectives are, all the decision making in the organization is tailored to taking the organization a step further towards the strategic goasl. Over and above that, it provides a front for performance management and evaluation. Profitability is well detailed and defined and success of the organization can be measured at any point in time. With a distinct strategic framework, the organization employees understand their job description, their work breakdown, and their purpose in the organization for both short term and long term basis; and hence success becomes a collective reward and operating towards it combined teamwork.

The AFI (Analysis, Formulation and Implementation) strategy framework is imperative in linking the three pillars of strategic planning; from designing the strategic plan through to its implementation (Voros 2003). The AFI strategy framework is dependent on leadership, as it can only be controlled and used by the person assuming total responsibility of the organization; in most cases the organization CEO.

The first faucet, analysis is done across the external, internal and competitive advantage layers. External environmental analysis considers the macro level environment, the industry environment and the competitive environment of the organization. Internal analysis identifies the capabilities, available resources and competencies of the organization as well as the value chain primary and supporting activities. Competitive advantage compares and contrasts the organization with the competing ones and uses the ensuing opportunities to build a competitive edge in the market (Kotabe & Kothari 2016).

Formulation, the subsequent faucet, depends on the results of the analysis. The formulation stage furnishes the business level and corporate level of the organization. The business strategy defines the strategic entrepreneurship and innovation that is relevant to the business; the appropriate cost leadership and the necessary items that will need to be incorporated into the business. Corporate strategy defines the external extent of the organization and the relationship with other organizations by delineation of the associations, networking patterns and possible acquisitions with the other business. Into the bargain, where an organization requires diversification to retain their competitive edge, or build it, formulation stage allows the organization to particulate and design the necessary diversifications (Kotabe & Kothari). Formulation states both short term and long term plans in attaining and retaining competitive advantage. In the event that the organization goals are cross-border; they are defined at this stage.

The last faucet of the AFI strategic planning framework is implementation which entails the actualizing of the formulated plans. Leadership is most crucial as it is responsible for outlining the culture and building a control and reward system as a motivating factor of all part players [employees and partnerships] towards the defined goals. The leadership builds the business ethics and a framework that ascertains accountability, fairness and transparency in the achieving of the set goals. Ethical responsibility is necessary in the building of this corporate governance, which will subsequent encourage all the employees and other part players be a part of the attaining of strategic goals.

Using the AFI framework in strategic planning ensures the organization clearly separates internal and external analysis. The risk of not separating the two may lead to false outcome of the analysis. Additionally, separating the two ascertains each module receives the necessary attention, and hence the formulated strategic goals follow a SMART approach. The framework gives the organization a competitive edge in the market as it allows for analyzing of competitors and hence possible strengths, weakness, opportunities and threats in the market are distinctively outlined.

For the efficacy of the strategic plan to be attained; distinctive or not; good leadership in an organization is chiefly vital. This ascertains all departments know their roles and play it towards implementation of the strategic goals. To the bargain, good leadership ensures the right interest and urgency is instilled in the employees. There is need to monitor progress within and after a given step, before outlining the next and this is achieved through good leadership in the organization. Phases of the implementation maybe carried out simultaneously or by departments and this too is explained by organization leadership.

References:

Kotabe, M., & Kothari, T. (2016). Emerging market multinational companies’ evolutionary paths to building a competitive advantage from emerging markets to developed countries. Journal of World Business, 51(5), 729-743. Retrieved from: https://doi.org/10.1016/j.jwb.2016.07.010

Les MacLeod EdD, M. P. H. (2012). Making SMART goals smarter. Physician executive, 38(2), 68.

Grainger-Brown, J., & Malekpour, S. (2019). Implementing the sustainable development goals: a review of strategic tools and frameworks available to organizations. Sustainability, 11(5), 1381. Retrieved from:   https://doi.org/10.3390/su11051381

Voros, J. (2003). A generic foresight process framework. foresight.