Running head: STRATEGIC PLANNING PROCESS 1
Strategic Planning Process
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STRATEGIC PLANNING PROCESS 2
Strategic Planning Process
Explain the basic steps in the planning process
Strategic planning is imperative to the growth and survival of any organization. The
process of strategic planning involves four basic steps. These steps involve analyzing the current
state, defining the future state, determining objectives and strategies and implementing and
evaluating.
Analysis of the current state is the first step of the process. Here, it is required to conduct
an analysis of the strengths, weaknesses, opportunities as well as the threats facing your
organization. A careful examination of the other external factors affecting your organization is
also advised. This includes the strength of one’s rivals, relationship between your organization
and suppliers as well as creditors. It is also worth mentioning that examination of customers, their
demands, what they like and what they do not like and try to see how it might affect the survival
of your organization.
The second step in the strategic planning process is defining the future state. This involves
coming up with a vision and mission statement that epitomizes the future of the organization.
This is a question of where the organization would want to be in the future. The vision
encompasses the purpose of the organization. It also reflects its values.it is also important to be
clear on what the organization wants to do. This is because; the clarity of vision enables one to
have clear strategies on how to achieve it.
The third step is determining the objectives and strategies. The objectives are goals that
the organization would set in order to see to it that the overall target is met. Strategies are means
and methods the organization uses to achieve its objectives. Strategies should reflect the strengths
and weaknesses of the organization in planning. This is because, it this strengths or weaknesses
that would spur the organization to meet its goals or derail it as well. Recognition of weaknesses
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and strengths will play a big role in determining the best strategies to employ in order to achieve
the goals of the organization (Schilder, 1997).
The fourth step in strategic planning process is implementation and evaluation. Once you
come up with the key components of the plan, it is important to implement the plan. Execution of
the plan should be carried out carefully, paying attention to all the ingredients of the plan.
Furthermore, it is imperative to regularly evaluate the execution to determine whether the steps
lead to the goals of the organization. In case the strategies fall short of helping the organization
fulfill its objectives as planned, the strategic plan should be reviewed and possibly readjusted to
ensure it meets the objectives. This flexibility is essential because it is a rather asinine to stick to
a plan which apparently would not bear any fruits.
Describe the steps in the decision-making process, and predict how the personal attributes
of the manager influence decision making.
The first step is to identify the problem or opportunity which requires a decision. It is
important to determine whether the problem is worth making a decision about. The gravity of the
problem would therefore dictate whether the problem merits a decision. Secondly, gathering
information about the problem or opportunity is imperative because it gives one insight into the
situation. The information gathered should be relevant to the problem. For example, all the facts
about the problem and how each component will affect the organization if the decision is made. It
is also important to gather information about other people who can help solve the problem or
influence how it is solved.
Thirdly, the third step is to analyze the situation. This involves careful examination of
other possible options around the problem. In most cases, there is more than one way around a
certain problem. Analyzing the problem will give insight into the alternative courses of actions to
solve the problem. It will also give if any, different interpretation of information gathered about
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the problem. The fourth step is to brainstorm and come up with several ways out of the problem.
There will be several options but careful scrutiny will present the best courses of action which
will see to it that a good decision is made.
The fifth step is the decision making process is the evaluation of alternatives. This
involves a keen examination of each option available in order to determine whether they are
possible and acceptable. The concern here is to take the option which will properly solve the
problem. The sixth step involves selecting the preferred alternative. Careful examination and
scrutiny of this alternative to assess its risks and problems it might create in the future if any is
done in this step. Finally, acting on the decision made. The action part of the decision is done by
carefully coming up with a plan to successfully execute the decision.
Personal attributes of the manager hugely affects the decision making process. This s
because these attributes contribute to their perception of issues. On the other hand, they also
contribute to their prejudices. As a result, different managers have different biases and prejudices
towards certain decisions. They are likely to make ineffective decisions simply because they
cannot go past their prejudices, biases and perceptions. However how hard they are convinced,
they already have an opinion about a certain situation and they are ready to hang on it no matter
what.
Predict how the steps of the strategic planning process and the environmental factors that
influence decision making impact the quality-productivity-profitability link.
Strategic planning will go a long way in the resource management. More often than not, the
financial, human resources and time are scarce. Therefore, the strategic planning sees to it the
organization anticipates the shift in the resources available and how to counter the effect. It
enables the organization to carefully use the available limited resources to meet its objectives and
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grow. This maximizes the available resources and ensures the organization improves not only the
quantity and quality of production but also profitability.
Secondly, strategic planning process equips the organization for the ever changing
business environment. These changes are characterized by new threats as well as opportunities.
The careful strategic planning therefore simply puts the organization in a pole position to
overcome the threats and seize the opportunities for its existence.it ensures there is a plan for
each foreseeable threat in place to prevent the indecisiveness or making ineffective decisions that
will affect the entire organization. This plan thus sees to it that the quality and quantity of
production is not jeopardized and so is the profit.
Thirdly, strategic planning enables the organizations’ leadership to communicate it to the
staff. It is worth noting that the plan is not important without being successfully executed.
Therefore, having a strategic plan enables the leadership of the organization to effectively
communicate the strategy to the staff and how to implement it. Therefore, the staff will easily
execute the plan with little or no glitches because they understand the plan and how important it
is to the success of the organization. Misunderstandings and errors will be minimized and the
profit margin of the organization will definitely increase. Furthermore, strategic planning
provides focus and direction to move from plan to action. The plan provides a framework on how
the organization should act to meet its objectives. Therefore, by having a well-outlined and
detailed strategic plan, the organization has a map which would guide them to achieving their
objectives. The organization can easily refer to their strategic plan in case things are not right and
determine where they went wrong. This in itself ensures the quality and quantity of production is
in consideration as well the profitability of the organization.
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References
What Is the Strategic Planning Process? - Model, Steps & Examples. Retrieved from
http://education-portal.com/academy/lesson/what-is-the-strategic-planning-process-
model- steps-examples.html#lesson
Schilder, D. (1997).Strategic Planning Process: Steps in Developing Strategic Plans. Retrieved
from
http://www.hfrp.org/publications-resources/browse-our-publications/strategic-
planning-process-steps-in-developing-strategic-plans
7 Steps in Decision Making. Retrieved from
http://www.the-happy-manager.com/tips/steps-in-decision-making/
Ingram, D. (n.d). What Are the Steps in the Decision-Making Process of a Manager? Retrieved
from http://smallbusiness.chron.com/steps-decisionmaking-process-manager-10601.html
Akrani, G. (2010, June 1).Decision Making Process in Management-Problem Solving. Retrieved
from http://kalyan-city.blogspot.com/2010/06/decision-making-process-in-
management.html
Olsen, E. (n.d).Why is a Strategic Plan Important? Retrieved from
http://www.dummies.com/how-to/content/why-is-a-strategic-plan-important.html
