Strategic Planning Case Study When

Strategic Planning Case Study

When GoAhead made the decision to change from a toy manufacturer to a marketer of metal toys, those in charge of the decision making process did not look at the long-term implications of their decision. Rather, the decision was made based on a clear assessment of the current environment, with no consideration of what the future may hold. In addition, those in charge of the organization did not consider the competencies of the business and the specific assets that could and should be leveraged in order to bring about change and profitability in the company. Instead, organizational leaders changed their core business in order to meet the needs of the external environment. If the leaders had kept their core business the same and had optimized operations, it is possible that the organization would have struggled and then regained its market position.

In an effort to further understand the challenges facing the organization and to understand where decision making went wrong, one only needs to consider the purpose and function of a strategic business plan. Prince (2007) in his review of the strategic plan argues that most organizations develop their initial plan and then put it in a drawer to gather dust. When this occurs, leaders of the organization become so focused on projections and profits that they often forget the central focus and purpose of the organization. As reported by Prince the strategic plan "marks your course, and it's the constant change between what you thought was going to happen and what actually happened that gives you the vision to maintain a course toward long-term objectives" (p. 56). Leaders of GoAhead did not consider these issues when developing a new plan for the organization's future.

Zook (2007, p. 66) has also considered the problems that can arise in the context of business planning and core business strategy: "Company after company prematurely abandons its core in the pursuit of some hot market or sexy new idea, only to see the error of its ways-often when it's too late to reverse course." Zook goes on to note that declining profitability in what was once a profitable business often does not require a reexamination of strategy; rather this situation often results from an execution shortfall. In this context, Zook contends that the organization must consider efforts to improve the organization along its current core strategy. These efforts will often produce the desired results. This did not happen at GoAhead. Instead of adhering to the company's core strategy, leaders plotted a new course that further hindered the ability of the organization to remain competitive.

Another pertinent issue that must be addressed in the context of this change is that it was developed and conceived by a small group of leaders in the organization. MacIntyre (2006) in his review of strategy development and strategic planning in the organization asserts that leaders considering change in the organization should make an effort to consult with employees to determine what specific changes could improve outcomes for the company. The process of consultation, according to MacIntyre, can help leaders to better understand the challenges they face and to make decisions that will more accurately reflect the needs of the organization, rather than outside interests.