Crafting Executing Strategy Due Week 2 worth 280 points Assume a business owner business professional, a company industry choice, responsible creating executing company's strategic plan.
Crafting and Execution Strategy
Description of the company
Our company deals in distribution of imported tires for both trucks and small and medium sized motor vehicles. The company operates under the name Motor Tire Limited. In the region of operation, there are two other major suppliers who deal in imported tires only. One deals in imported tracks tires while, the other deals in imported small and medium size motor vehicles tires. In the market of tires, there are small companies who deal with supply of tires on demand basis but, they have slowly started expanding their operations with the realization that the two wheel motor vehicle industry is growing and, there are no key players in the industry.
Importance of Strategic Plan
A strategic plan is an outline of an organization's desired projection or direction Beasley M.S., Frigo M.L., & Litman J., 2007.
The understanding of the strategic plan as a guide emphasizes not only its importance but also the key role it plays. Setting up an organization means that an individual or group of individuals has a desired goal. Strategic management helps the management team to have a comprehensive perspective for each and every aspect touching on the organization. It will also guide, in the formulation of short-term goals and directing the employees and resources within the organization towards attainment of the goals.
In the case of a sale and distribution company such as Motor Tire Limited, the overall goal is to control at least over 60% of the market share in order to make desired profits and guarantee their future growth. This goal is more long-term than short-term and strategy needs to be devised on what should come first to yield the goals.
Strategic planning also helps in the coming up with identified measures of resources and input required. Setting up goals in an organization is not enough the capacity of the organization physical and human power needs to be assessed. Strategic management creates avenues for an overall evaluation of the resources in the organization and assessing their capacity. The assessment helps in the allocation of the resources according to their capacity. Where the capacities in these resources are inadequate, then measures to boost them are devised.
Without strategic planning, organizations will allocate resource on biased judgment that decreases operational efficiencies. Set goals and, desired ends will cost more than they ought to have even if, they are attained eventually Khurana & Nohria, 2008.
Strategic planning is a measure of organizing the resources within an organization's reach and deploying then in the most efficient way to attain the goals of the organization Lorenzen M., 2006.
It explores the most efficient way to arrange the companies resources. Planning directs resource towards the desired goal with greater efficiency. In a sense, through assessment and management that comes with strategic planning, an organization attains the requisite cohesiveness in performance. This reduces chances of failure as well as increasing the efficiency in performance. Accuracy in attainment of Goals is also put in place accuracy in goal attainment Brown, Lamming, Bessant, & Jones, 2005()
Strategic planning also offers an opportunity for firms to scan their external environment before implementation of sought ventures. Example, for Motor Tire Limited, its external environment comprises of the competitors -- existing and potential, tire manufacturing companies (their supplier), change in demand for motor vehicles and their use, the region's legislations and advances in technology that are associated with tire use and manufacturing. With strategic planning, an organization has the ability to assess what they intend to attain in introspect of their external environment. Planning provides avenue for assessment of influence or deterrence external factors have on goal attainment. A company that plans their operation will be better positioned to avoid misappropriation of resources where an outward view of the plans was required
From the above arguments, it is sufficient to concur that strategic planning plays a critical role of ensuring cohesiveness of the directions taken by the different facet of an organization towards the s ought goals. It ensures that the vision mission values and objectives of the organization are in line with the direction taken by the managers, owners and employees. It also ensures responsiveness to the external environment of the organization's operations.