Business Management For Global Strategic Management

Critical Analysis of the Study

Discuss about the Business Management for Global Strategic Management.

The role of strategic planning and performance management are related with each other. There are certain organizational goals and managerial objectives, which managers irrespective of the nature of the business try to accomplish. On the other hand, performance management is all about setting and achieving goals at the employee level and it allows identifying all the crucial factors towards achieving the overall organizational goals and objectives (Cassidy 2016). By analyzing relevant models, theories, concepts and literature, this study tries to explore importance of planning and strategic planning in the contemporary business.

The primary step of every managerial activity is to develop a proper plan. It is one of the important functions of management. The role of planning contributes as one of the significant aspects in the organization at every managerial level. In the absence of planning as well as strategies, all the business activities of the organization will become meaningless. However, the importance of cannot be over emphasized for a company.

Many companies spend a certain amount of time in the process of strategic planning. However, the ultimate objective of every organization irrespective of the nature of the business is to be benefited in certain ways. Establishing a vision and a mission, setting up goals and objectives, evaluating as well as selecting the best strategic options are some of the key measures, which will evaluate the objectives of planning in the overall organizational operations (De Neufville et al. 2013). The role of planning contributes as one of the most important aspects in the decision-making activities of the organizations.

Managers follow four basic steps towards performing an overall performance of the organization. Planning, Organizing, controlling and evaluating are the four major steps, which evaluates the performance of the organization. However, strategic planning is a document, which is used to communicate with the organizational goals and concludes the actions, which are required to achieve these goals during the planning exercise. There are four important factors, which constitutes the roadmap towards developing a proper strategic planning of the organizational operations. Mission and vision statement, Analyzing the key drivers of core competitiveness, developing a proper situation planning and incorporating a proper scenario planning in order to evaluate an effective business operations and communication (Haines 2016).

The decision making process is selecting the best decisions among the different kinds of alternatives. With the help of proper planning and following some key strategies, contributes in the following and implementing of managerial functions and most importantly it allows to evaluate the performance of the managers.

Importance of Planning and Strategic Planning

With the view of “Basic Strategic Planning Model”, is often effective for new organization. As planning, is one of the major as well as primary steps of every organization, this particular model of planning is much effective in case of growing and small scale business companies. However, the importance of basic strategic planning model will cover some of the important attributes in the organizational process. For example, one of the growing Australian organizations, with the help of this particular planning model was able to develop a strong mission and vision of the company, which in return was beneficial in the long run of the business (Channon and Jalland 2016). Creating general goals and identifying some specific objectives towards evaluating and updating the plan overtime is another important factor, which the organization was very much beneficial.

Strategies developed by different organizations in order to evaluate the operations of the organizations in a smoother manner. For example, if a company wants to evaluate proper findings towards developing a proper business plan the role of “Basic Strategic Planning Model”, will guide the organization in an effective manner in order to evaluate all the findings in the right manner.

“Goal based planning model”, starts with the application of the SWOT Analysis. SWOT Analysis is one of the important marketing tools, which majorities of the organization irrespective of the nature of the business follows in order to scan the internal environment as well as the external environment as well as the external environment. Goal based strategic model is considered towards evaluating all the crucial factors which will focus in the process of environmental analysis (Goetsch and Davis, 2014). Environmental analysis is one of the crucial parts planning. The contribution of the SWOT Analysis evaluates a crucial part towards scanning both the internal environment as well as external environment. However, in order to evaluate this particular tool, “Goal based planning model”, contributes as one of the important aspects in the managerial procedures.

The notion of SWOT Analysis concludes in four factors, i.e. Strengths, Weakness, Opportunity and Threats. By analyzing all the crucial factors of both the internal environment as well as the external environment, the managers develops a strong decision making activities by following Goal based planning model.

“Alignment Planning Model” focuses towards linking between the organizational missions in addition; its resources in order to ensure make a strong organizational prospect. The resources of every organization are limited. With the help of the limited resources, all the organization tries to accomplish the vision as well missions of the organization. It is often that majority of the manager’s tries to ensure in the process of optimum utilization of resources, as it is one of the crucial parts, in the overall organizational planning (Momin and Mishra 2015). The bulk of the planning process mainly focuses on the type of adjustments, which are required which are required to ensure in the process of evaluating all the organizational activities in the desired manner (Mellahi and Frynas 2015). There are certain benefits in the process of optimum utilization of resources.  It reduces the percentage of waste in the organizational operations and ensures in the process of effective utilization of resources.

Key Models of Planning

“Scenario Planning” is one of the unique planning models used with the view of ensuring strategic planning, which is incorporated in the process of operational management. This particular business model is one of the important parts of planning and strategic planning in the contemporary business environment. For example business exits in a dynamic environment, this is chaining at a frequent basis. In the era of globalization, the way of organizing business differs as compared with the traditional ways of doing business. Globalization allows different business firms to organize the business proceedings beyond the national boundaries (Bloom et al. 2012). However, with the view of organizing an overall business operation beyond the national boundary, it is important to analyze some of the crucial factors, which includes changes in policies or regulations, changes in funding, demographic changes, and technological changes. With the help of “Scenario planning”, different organizations will find a proper way towards determining the right way.

“Organic planning model”, is one of the planning models, which ensures in the process of developing a linear approach in the operations of the organizations. The role of the stakeholders contributes as one of the most important parts in this particular business model. This particular planning model unfolds naturally with continuous process on common values and consistence communication process in the overall business operations (Alfes et al. 2013). Developing a proper communication system in the organization is one of the major steps, which focuses in the process of maintaining the transparency of the organization.

There are various benefits towards following all these important planning models and concepts. With the use of these planning models in the business operations, ensure in the process of bridging the gap in the management. It allows the managers to allocate the right job for the right employees, which automatically ensures towards increasing the performance of the organization. The most important part is the process of developing a proper controlling system, which allows the managers to monitor the actual performance with the planned performance of the organization (Kim, Kumar and Kumar 2012). If there is any deviations takes place in the operations, the managers of the organization will be able to track and will take some effectives measures with the view of bringing the actual performance with the planned performance. All these factors evaluate the strengths of strategic planning in the contemporary business world.

However, in the dynamic business environment, following all the aspects of planning often leads to rigidity and reduces the flexibility in the decision making process. In certain business circumstances, change in the overall planning system is quite often. Rigidity and lack of flexibility often brings certain native impacts in the operations of the organizations (Jiménez-Jiménez, Martínez-Costa and Sanz-Valle 2014).

Conclusion

All the key models of planning, contributes an effective communication system in the business environment. The way of organizing business differs as compared with the traditional way of doing business. With the help of these particular strategic models, different organizations were benefited in certain ways. The application of these particular planning models will guide different business organization to evaluate a proper as well as strong decision-making process. Planning is the primary step, which different manager follows towards evaluating proper organizational operations.

Out of all the planning models, there are five basic models, which allow different managers to evaluate all the organizational organization in the best possible manner. Basic Strategic Planning Model, Goal based planning model, Alignment Planning Model, Scenario Planning and Organic planning model are the five important models of planning which evaluates the idea of planning  as well as strategic planning in modern business.

Reference List

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Bloom, N., Genakos, C., Sadun, R. and Van Reenen, J., 2012. Management practices across firms and countries. The Academy of Management Perspectives, 26(1), pp.12-33.

Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.

Channon, D.F. and Jalland, M., 2016. Multinational strategic planning. Springer.

De Neufville, R., Odoni, A., Belobaba, P. and Reynolds, T., 2013. Airport systems: planning, design and management.

Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. pearson.

Haines, S., 2016. The systems thinking approach to strategic planning and management. CRC Press.

Jiménez-Jiménez, D., Martínez-Costa, M. and Sanz-Valle, R., 2014. Knowledge management practices for innovation: a multinational corporation’s perspective. Journal of Knowledge Management, 18(5), pp.905-918.

Kim, D.Y., Kumar, V. and Kumar, U., 2012. Relationship between quality management practices and innovation. Journal of operations management,30(4), pp.295-315.

Mellahi, K. and Frynas, G., 2015. Global strategic management. Oxford University Press.

Momin, W.Y.M. and Mishra, K., 2015. HR Analytics as a Strategic Workforce Planning. IJAR, 1(4), pp.258-260.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.