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Strategic Planning And The Achievement Of Organizational Goals
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to identify or develop knowledge about the present potential of an organization.
VI. Determination of Exte nt of Strategic Change Required
When an organization has known the present potential in it ’s existing strategy, it is then possible to know if the existing strategy is capable of helping an organization to attain the newly formulated strategy. The manager is then in the position to decide whether or not to modify the existing strategy or to go on with its implementation. It is easy to make this type of decision if performance gaps can be identified between the present objective and the existing strategy .
A performance gap (Stoner 1984) is the difference between the objectives established in the goal formation process and the results likely to be achieved if the existing strategy is continued. So the performance gap is the gap between the present potential of the business and the present objectives set in the goal formulation.
According to Ansoff, a manager of a business may decide to accept the present potential and reduce his objective where he is not interested in any strategic change. However, an ambit ious manager may likely reject the present potential and adopt diversification to attain the newly formulated objectives. So in the real sense, performance gap exist because an organization’s existing or present strategy is not capable of accomplishing th e current objectives because the management of an organization deliberately formulated a new objective due to changes in business environment. Where there is going to be a close of the performance gap, this may lead to strategic portfolio balance analysis . This type of analysis may sometimes be related to diversification analysis.
According to Ansoff 1984, the management may be willing to accept the present potential line as its goal for the future. In this case, the gap analysis is completed and programs and budgets are developed for implementation. In many cases, the present line will be unacceptable to management, either because of strategy vulnerability of the present portfolio, or because the growth ambitions of management are substantially above the prospects line. In such case, the next step is diversification analysis which diagnosis the deficiencies in the present portfolio and identifies new business area into which the firm will seek to move. When the performance expected from the new business ar ea is added to the present potential line, the result are overall goals and objectives of the firm as formulated newly.
Two factors influence the closure of performance gap (that is according to Ansoff diversification gap) these are:
i. The ambition and dri ve of top management
ii. Strategic resources which will b e available for diversification.
VII. Strategic Decision Making
This action primarily involves identifying the strategic business area (SBA) of a particular business organization which will be selected for the purpose of closing the performance gap as we mention above. Strategic decision making involves choice making, so it follows the normal decision making process (Taylor 1965). Strategic decision making here involves three major activities these includes:
i. Identification of strategic alternatives
ii. Evaluation of strategic alternatives
iii. Selection of strategic alternatives
a. Identification of Strategic Alternative
This action will involve identifying strategic objectives within the strategic business are as of a focal business organization . These strategic alternative can be new markets to be entered, new product development, vertical integration strategies, diversification opportunities etc.
b. Evaluation of strategic Alternatives
The evaluation of alter natives will be based on their gap closing capability. The alternative are to be evaluated if they provide the organization “Common thread†opportunity. Apart from the above view on evaluation, Rumelt has describe four criteria for evaluating strategic opp ortunities. These include
1. The strategy and its component parts should have consistent goals, objectives and policies
2. It should focus resources and efforts on the critical issues identified in the strategy formulation process and separate them from unimportant issues.
3. It should deal with sub -problems capable of solution given the organization’s resources and skills. (for example, he notes that “A strategy for competing in the electric typewriter market by creating a radically cheap , yet durable machine def ines a subproblem (inventing the machine) that is probably no moR e amenable to attack than the original strategic problem.
4. The strategy should be capable of producing the intended results – that is it should show promise of actually working.
C. Selection of Strategic Alternatives
Only the strategic alternatives that can help the organization close the performance gap are selected. The evaluative analysis mode as discussed above must have provided the potentials with each alternative in relationship to ga p closing capability.
In selection of an alternative, the existing structural capability of an organization in taking initiative to implement a selected strategy is visualized here as being important. Here experience is very important.
VIII. Strategic Imp lementation
When an organization has selected its strategy to attain its corporate objective, it must then implement it. Strategy implementation is an aspect of organization design. Organizational design is the process of determining appropriate organiza tion structure for a particular organization for the purpose of attaining the objectives of an organization. Strategy implementation affects structural growth and expansion. In the real world situation serious consideration is given to chandlers thesis tha t structure follows strategy. So each time an organization implements a new strategy it must select appropriate structure that fits that strategy (Chandler 1962, Galbraith and Nathanson 1976, Onwuchekwa, 1996) . So strategy implementation is an aspect of ch oice of appropriate organization structure in terms of functional, multi-divisional and holding – company structures.
IX. Measurement and Control Progress
When we implement strategy, after operational activities have commenced, we involve ourselves in the problem of strategy control. Two important questions are asked in strategy control. These are:
1. Is the strategy being implemented as planned?
2. Is the strategy achieving the intended results?
Managers pay attention to control activities since there may be some adjustments needed during strategy implementation.
2.11 Variations in Organizations and Strategic Planning (Onwuchekwa 2002 pg. 171).
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTStrategic planning is one of the most important and vital stage in strategy. Strategic planning is important in achievement of organizational goals because it directs the steps to be used in achieving that goals that the organization needs. This work examines strategic planning and its achievement to organizational goals. The main objectives of ... Continue reading---
QUESTIONNAIRE - [ Total Page(s): 1 ]RESEARCH QUESTIONNAIRESPlease tick where appropriate and write your sex on top of the question paper.1. When was your organization established?a. Before 1995 (b) 1996-1999c. 2000-2003 (d) 2002-20052. What is the sex distribution of the staff of the or ganization?a. Mainly males (b) mainly femalesc. equal number of males and female s3. What is the capital strength of your organization?a. Very strong (b) Strongc. V ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 1 ]TABLE OF CONTENTSTitle page Approval page Dedication Acknowledgement Abstract CHAPTER ONE - INTRODUCTIONIntroduction Statement of the Problems Objectives of the Study Research Questions The Research HypothesisScope of the Study Limitation of the Study Significance of the Study Definition of Terms CHAPTER TWO - LITERATURE REVIEWIntroduction Strategic Planning Scope of activities in strategic planning Expected goal f ... Continue reading---
CHAPTER ONE - [ Total Page(s): 1 ]CHAPTER ONE INTRODUCTION1.0 Background o f Study : Strategic planning being an integrated plan through which an organization accomplishes it plans and procedure to the achievement of organizational goals should not be overlooked or set aside once that organization want to actualize its goals. Every organization wants to grow ’ and dominate the environment or the market it finds itself. But due to some economic downturn around the environment, most of them are bein g take ... Continue reading---
CHAPTER THREE - [ Total Page(s): 2 ]CHAPTER THREERESEARCH METHODOLOGY3.0 IntroductionIn this chapter, the research work focuses on how the work was executed. It includes sources of data instrument used in data collection etc.3.1 The Design of the StudyThis research work w as designed to survey the role of strategic planning in the achievement of organizational goal.3.2 Population of the StudyThe population for the study consists of four small scale private firms in Awka SOUTH local Government Area of Anambra Stat ... Continue reading---
CHAPTER FOUR - [ Total Page(s): 4 ]The table above shows us that 46 respondents representing 68.7% of the total respondents we re of the view that strategic planning has immensely contributed to the growth and development of an organization while 21 respondents representing 31.3% of the total respondents said that strategic planning has contributed to high extent in the growth and development of an organization.Table IX is telling us that 67 respondents representing 100% of the total respondents agreed that strategic pla nning he ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 1 ]CHAPTER FIVEFI NDINGS, CONCLUSION AND RECOMMENDATION5.1 Summary of FindingsFrom the investigation carried out in this study, the researcher discovered that in Awka South Local Government Area, they have mainly small scale firms.The researcher also found out that th e majority of staff of all these small-scale firms are females and few of males. Again most of the raw-materials used by these small scale firms are imported from outside. It was discovered by the researcher that some of these s ... Continue reading---
REFRENCES - [ Total Page(s): 1 ]REFERENCESAnsoff, H.I (1984) Implanting Strategic Management, India: Prentice Hall International .Bedeian, A.G (1987) Management , New York: CBS international Editions.Bradford, E and Duncan; A (2000) Simplified Str ategic Laws of Business Success Berrett: Koehler Publishers.Carter, M. (2008) Field Guide to Non Profit Strategic Planning and Facilitation, LLC: Authenticity Consulting.Chandler, A.D (1962) Strategy and Structure. Cambridge Mass: The MIT Press C ambridg ... Continue reading---
