Strategic planning and management in modern business environments

¶ … Strategic Planning and Management in the Business Environment have thought about starting a small online ebook store. The operations will be entirely online, with the ordering and payment processes occurring online. The business will cater to an emerging readership market that requires the convenience of electronic reading material. Both nonfiction and fiction works will be offered.

Strategic management and planning are vitally important components in an any business. According to Tone Cesnovar (2006), strategic management and planning focus on a response to challenges directly from the environment. The author distinguishes between two approaches to such management. The business owner can for example implement strategic planning by means of a conscious, controlled, formal processes and management techniques, or more informal processes such as those based upon the manager's experiences, intuition, vision and emotions. Cesnovar refers to the latter as "strategy-as-practice." These strategies are more appropriate for the small, online business environment. Informal methods of management are also faster, more flexible, and convenient in such an environment, particularly if the type of business involved is taken into account.

This is however not as simple as it may seen. According to Cesnovar, at least one new strategic management method appears every year. This is particularly relevant in terms of the rapidly changing environment of the Internet business world. Because of the many developments, it is important for the business owner to maintain his or her knowledge regarding these changes. Such changes in the environment can then be used to provide potential customers with an appealing experiencing when visiting the ebook store site. The management strategy will therefore need to be not only flexible, but also to be updated on a regular basis. The author however also warns that all techniques cannot be transferred from one type of business to the other, and that each individual environment should be considered carefully.

Because of the overwhelming number of strategic management techniques and research that are available, Cesnovar (2006), suggests that the appropriate techniques be identified and applied to the specific type of business involved. In order to choose the correct targeting techniques, it is perhaps a good idea to consider the four functions of management as they relate to the strategic planning process.

According to Jayashree Pakhare (2007), the four basic functions of management will assist the business owner in making important, goal-oriented decisions. The four functions are planning, organizing, directing, and controlling. These functions should always and continuously be integrated in the management process in order to ensure that the business runs smoothly within its environment.

Planning, according to Pakhare, is the basic function of management. All other areas are based upon this important step. Before I can start my ebook business, I need to make assessments of the environment and marketing potential of my products. Goals and objectives are also important in this stage. Before any further planning can be done, I need to create goals and objectives for my products and related services.

Pakhare also emphasizes that planning is a never-ending process. In the strategic environment, and particularly in a highly flexible environment like the Internet, planning should occur on a continuous basis in order to ensure smoothness, success, and reasonable goals and strategies that relate to the environment.

The second process, organizing, involves the practical application of the planning stage. During this stage, I will need to acquire and organize the resources I need to start my business. I will for example acquire the texts I plan to sell, set up a Web presence from where to do this, and so on. This is also a stage during which business relationships are established, which I will also do via the Internet and email. I can for example find business associates to help fund the enterprise. It is projected that the entire business will be conducted from an online platform.

Directing is the third function. For my situation, this will basically mean that I maintain my business relationships with my partners, and that we establish tasks for each partner according to the goals of the company. Most of the business will be handled by myself, especially initially, so I do not project that this phase will take a large amount of my effort or time.

According to Pakhare, the final function is control. This involves establishing and adhering to performance standards. Once again, this focuses mainly on myself and the partners that I choose to include in the business. The business is only small, so the effort in this stage is also projected to be initially minimal and relatively simple. Quantifying performance, like planning, should form a continuous part of ensuring that the business runs smoothly.