This paper’s objective is to present the importance of the strategic planning in business management. Speaking of strategic planning is always speaking in general terms and how to fix paths of behavior will necessarily affect deeply and significantly in the future evolution of the company or organization that adopts it. Today we think of the organization as part of an environment and in terms of options or choices based on what you have, of its surroundings and the opportunities or pathways that can lead to achieving the objective, (Garrido, 2009). For this work the method used was a bibliographical review of relevant articles from a range of authors was conducted. The conclusions were that the be properly analyzed and adapted to the precise conditions and characteristics of the small business or, more generally, to any type of business for which the planning is intended. Strategic planning brings multiple benefits (which exceed its disadvantages) if applied in the right way, however, there are inherent risks, which can be overcome with proper monitoring and control.
Strategic management in policy and strategy: A thematic discourseTANKO AHMED fwc
The paper evocates a preceding discussion and illustrates strategic management in relation to the theme of science, technology and innovation for the development of agriculture and agro-allied industry in Nigeria. It paper circumvents conventional scholarly styles in favour of the latest trend in re-thinking strategic management in the 21st century focusing more on result orientation. It identifies the need to strengthen the intent-to-action process with task-focused consistent drive in progressive flow and result orientation by use of will power in a sustained feedback system.
Strategic management in policy and strategy: A thematic discourseTANKO AHMED fwc
The paper evocates a preceding discussion and illustrates strategic management in relation to the theme of science, technology and innovation for the development of agriculture and agro-allied industry in Nigeria. It paper circumvents conventional scholarly styles in favour of the latest trend in re-thinking strategic management in the 21st century focusing more on result orientation. It identifies the need to strengthen the intent-to-action process with task-focused consistent drive in progressive flow and result orientation by use of will power in a sustained feedback system.
To select the best strategy among the Selected strategy the process adopted is known as strategic choices and there are some factors to be kept in mind before selecting the strategy they are known as subjective factors.
To select the best strategy among the Selected strategy the process adopted is known as strategic choices and there are some factors to be kept in mind before selecting the strategy they are known as subjective factors.
Assignment 3 Case StudyE-Business Strategy and Models in B.docxbraycarissa250
Assignment 3: Case Study
E-Business Strategy and Models in Banks: Case of Citibank
Bank is an institution that deals with money as well as credit. It accepts deposits from the public, makes funds available to those who need then and helps in remittance of money from one place to another (Macesich, George, 2000, p-42). Modern banks today perform a wide range of functions that makes it difficult to give an apt and precise definition of it. One of the famous economists, Crowther had said, a bank “collects money from those who have it to spare or who are saving it out of their incomes, and lends this money to those who require it”. In short, the term bank in modern times refers to an institution that deals with money i.e. accepts deposits and advances loans; has the ability to create credit which basically implies expanding its liabilities as a multiple of its reserves; creates demand deposits and it is a commercial institution that aims at securing profits.
Citibank is a subsidiary of Citigroup. Citibank was founded as City Bank of New York in the year 1918. According to the latest statistics, it is now the third largest bank holding company in the United States by the total assets after Bank of America and JP Morgan Chase. The bank has its retail banking operations spread over more than 100 countries and territories around the world (Harold, Cleveland & Huertas, 1985). Apart from the standard banking transactions, Citibank offers credit cards, insurance and other investment products. Their online services have earned them appreciation from every nook and corner, making them the most successful in the field. The 15 million online users bear testimony to the stated fact. The key people involved in the management of the bank are: Vikram Pandit (CEO), John Gerspach (CFO), Douglas Peterson (COO) and Willliam R. Rhodes, the Chairman.
Strategy literally means the way an action is planned to achieve the desired results. Every company has certain aims that it hopes to conquer. It has a vivid description of what it desires to achieve. The vision statement that company has is an idealized picture which inspires it, energizes its efforts towards directing its actions towards the expected goals (Hambrick and Chen, 2007, p 935-955). Strategic Decision Making, in context of a firm or an organization, is the framing of long term plan of action that aims at resulting in success and profits for the products and services marketed by the company, for instance (Triantaphyllou, 2000, p 320). Strategic decision making is important to outperform the various other competitors in the market. The process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose is known as Strategy formulation. In today’s era of cut-throat competition in the business environment budget-oriented planning or forecast-based planning methods are insufficient for a large corporation to survive and prosper. The firm ...
STRATEGY, STRATEGIC PLANNING, STRATEGIC DECISION, STRATEGIC CAPABILITY, OPERATIONS MANAGEMENT, ROLE OF OPERATIONS IN AN ORGANIZATION, SCOPE OF OPERATIONS MANAGEMENT, OPERATIONS STRATEGY, DIFFERENCES BETWEEN STRATEGIC, ADMINISTRATIVE AND OPERATIONAL DECISIONS, BUSINESS ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION AND LEARNING,
The Role of Innovation, Entrepreneurship, and Strategy in Achievin.docxoreo10
The Role of Innovation, Entrepreneurship, and Strategy in Achieving Sustainable Competitive Advantage
Innovative and entrepreneurial organizations develop a strategy that can effectively lead to the commercialization of the new and novel products or services in the marketplace with a sustainable competitive advantage. Strategic management and entrepreneurship are dynamic processes that are intended to enhance organizational performance (Kuratko & Audretsch, 2009).
Strategic management focuses on how competitive positioning can create advantages for organizations that, in turn, enhance performance (Porter, 1980, 1996) and achieve sustained competitive advantage. Strategic planning requires top management to focus beyond the current external environment and envisage the organization’s market position in the short, medium, and long term. It necessitates the ability to evaluate the resources and core competencies in terms of how they can be utilized to create new sources of value.
Innovation and entrepreneurship are the key to successfully developing competitive advantages. The challenge is to develop innovation and entrepreneurship as a core competence of the organization. In a global competitive economy, the most successful strategies are those that are integrated with innovative and entrepreneurial activities that offer superior value and create wealth. Strategy and strategic management define the direction of the organization and how well it is achieved. Management needs to develop a strategy that focuses on the best ways for the organization to create and sustain a competitive advantage while simultaneously identifying and developing new opportunities. Innovation and entrepreneurship are focused on searching for new opportunities that will create value for the organization, customers, and stakeholders. Strategy is focused on sustaining competitive advantage and achieving above-average returns. Simultaneously embracing entrepreneurial philosophies, an entrepreneurial climate, and entrepreneurial strategic behaviors increases the likelihood an organization will identify and use its unique capabilities as a pathway to increasing its performance (Ireland, Covin, & Kuratko, 2009). Therefore, the integration of innovation and entrepreneurship for opportunity identification and development and a strategy for sustaining competitive advantage are necessary for value and wealth creation. Organizations that can develop competitive advantages today, while using innovation and entrepreneurship to cultivate tomorrow’s advantages, increase the chance of survival and growth in the long term.
Integration of Innovation and Entrepreneurship With Strategy
The integration of innovation and entrepreneurship with strategy can be defined as a vision directed strategic analysis with a core focus on innovative and entrepreneurial behaviors that continuously develop the organization through the identification and development of innovative and entrepreneurial opportuni ...
Week 1 Mandatory ResourcesEnvironmental factors to achieve stra.docxcelenarouzie
Week 1 Mandatory Resources/Environmental factors to achieve strategic objectives in companies.pdf
Bulletin of the Transilvania University of Braşov • Vol. 3 (52) - 2010
Series V: Economic Sciences
ENVIRONMENT FACTORS TO ACHIEVE
STRATEGIC OBJECTIVES IN COMPANIES
Lucian GUGA
1
Abstract: Strategic management begins with an evaluation of the
organization’s mission, goals, and strategy. This is followed by situation analysis
(sometimes called SWOT analysis) which examines opportunities and threats in
the external environment as well as strengths and weaknesses within the
organization. Situation analysis leads to the formulation of explicit strategic
plans, which then must be implemented.
This planning usually takes place in for-profit business organizations and
pertains to competitive actions on the market. Although some companies hire
strategic planning experts, the responsibility for strategic planning rests with line
managers. Seniors executives of companies want middle and lower-level line
managers to think strategically. Strategic thinking means to take the long-term
view and to see the big picture, including the organization and the competitive
environment and consider how they fit together. Understanding the strategy
concept, the levels of strategy, and strategy formulations versus implementation
is an important start towards strategic thinking.
Key words: strategic management, corporate - level strategy, business - level
strategy, functional - level strategy, situation analysis, departmentalization,
innovation and change.
1
Department of Management and Economic Informatics, Transilvania University of Braşov
1. Introduction
For the existing business to be capable of
innovation, it has to create a structure that
allows people to be entrepreneurial… This
means, first of all, that the entrepreneurial,
the new entity, has to be organized
separately from the old, existing one.
Whenever we have tried to make an
existing entity the carrier of the
entrepreneurial project, we failed. A
separate entity must be created, different
from the mainstream of the organization
that is responsible for developing and
initiating innovations. Allocation fund
providing resources from which
individuals and groups design and develop
new ideas, products, or businesses.
2. Overview Concepts of Strategic
Management
Strategic management begins with an
evaluation of the organization’s mission,
goals, and strategy. This is followed by
situation analysis (sometimes called
SWOT analysis) which examines
opportunities and threats in the external
environment as well as strengths and
weaknesses within the organization.
Situation analysis leads to the formulation
of explicit strategic plans, which then must
be implemented.
Bulletin of the Transilvania University of Braşov • Vol. 3 (52) - 2010 • Series V
1.
Running head STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT .docxtoltonkendal
Running head: STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT 1
STRATEGIC FIT WITH THE INDUSTRY ENVIRONMENT 2
Strategic Fit With the Industry Environment
James Smith
MBA 6024
Unit 4 Assignment 1
3/20/16
Strategic management is termed as the art and the science of the formulation, implementation, and the evaluation of the cross-functional decisions that are made and enable an organization to achieve the goals that have been set. The objectives are achieved through the development of policies and plans that when implemented will assist in achieving the objectives of a firm. Therefore, the strategic management of any given organization combines various activities from various functional areas of an organization and also ensures that the organization is working towards accomplishing the set goals and objectives of a firm. The strategic management is tasked with giving instructions to the management team so as to combine their efforts towards the accomplishment of the organizational goals. It is a process that also involves the assessment of the competitors, the goals that have been set, and the effectiveness of the strategies that have been applied.
There are various models that are used in the analysis of the strategies that are applied by a company. PEST analysis is the best suited technique that assists in evaluating the environment where a business operates. Scenario Planning, on the other hand, is a technique that is capable building various views that are plausible in regards to the future of the entity. The Porters Five commonly referred to as the five forces analysis is a model that is used to analyze the effects of competition in the industry. Market segmentation is the technique that seeks to identify the similarities and the differences between the group of customers and the users. The directional policy matrix is a technique that summarizes the competitive strength of the operation of business in specific areas (Burton 2012).
The PEST analysis of a firm is a concept that is widely used in marketing. The tool is also crucial because it is used by these firms to master the environment where they are operating. Additionally, firms use the approach in the analysis of the environment before the launch of a new product. The analysis entails answering various questions that are of great importance to the firm. First, the firm seeks to understand the current political situation in the environment where the business is being operated. The analysis determines how the political situation of that given country will have an impact on the industry. The other question that the analysis seeks to answer is the prevalent economic factors that are in existence in the given environment (Haberberg 2007).
The third question that has to be addressed by the analysis is the role culture in the market. Further, the analysis focuses on the determinants of the culture. The ...
Although performance appraisal is concerned with the evaluation of workers job performance, it at the same time serves to highlight the specific objectives of an organization. As the employee is being evaluated the organization is also evaluating itself by comparing objectives and standards of performance, reviews the whole appraisal framework and design as well as organizational values and culture. Performance appraisal is a veritable tool for organizations to evaluate and increase the quality of education and training of their workforce with a view to developing lifelong learning patterns and strategies to sustain productivity throughout longer working periods. Motivation as it relates to employee productivity is often behind the drive for performance and self-actualization and provides opportunities for higher productivity. Productivity is an important measure of goal achievement because getting more done with less resources increases organizational profitability. Using the exploratory research design and 109 participants the result of the study indicates a strong positive correlation between performance appraisal and employee productivity. It suggests that the issue of performance appraisal in charitable organizations should be addressed. In view of the result of the study, the paper recommends that performance appraisal should carefully review employee’s strengths and weaknesses against requirements for possible future higher responsibilities.
The integration between innovation and business is a key factor in competitiveness between organizations. That is, innovation applied to a business makes no sense if not considered as an integral tool for the processes of the organization. Companies should therefore adopt a policy where innovation plays a strategic role in the design of business models to become lean, effective and competitive entities (Moraleda, 2004). The objective of this paper is to show the importance of innovation within companies, identifying the concept, the various models that different entities might adopt in order to develop better processes of innovation, as well as indicators that represent innovation at global and national levels in order to develop strategies that lead to an increase in competitiveness. For this work the method used was a bibliographical review of relevant articles from a range of authors was conducted.
The practitioners and academicians in the business arena are highly concern about the enhancement of employee performance in this competitive age for achievement of business goals. Considering the issue, this study aimed to measure the influence of Human Resource Management (HRM) practices on the performance of employees. The data of this study have been collected from 392 on-the-job operational level employees using survey method who are working at different garment factories in Bangladesh. The collected data are analyzed through structural equation modeling to partial least square method. The study empirically proves that employee training and development, promotion opportunity, and job security has significant influence on the employees’ performance. Theoretically, this study proves that training and development, job security and promotion opportunity together influence on the performance of employees in the developing economy. The practitioners and policy makers of the organizations are expected to make necessary adjustments in their existing HRM practices based on the findings of this study in the context of Bangladesh for enhancing the employees’ performance level so that their whole-hearted efforts can be gained for the achievement of business goals.
Child labor is one of the issues receiving much attention from researchers and scholars around the world. Child labor still occurs in most countries around the world. Viet Nam is also one of the countries with relatively high child labor and increasing trend. This article is based on critical discourse analysis and data from the General Statistics Office of Vietnam to analyze some fundamental issues of child labor in Vietnam, thereby giving policy suggestions to the Vietnam government in minimizing the current child labor situation.
The rapid trend of changes and social issues in managing the global workforce has forced organizations to look for innovative ways of enhancing the job satisfaction of employees. Among these innovative approaches is the provision of Flexible Working Arrangements (FWAs). The purpose of this exploratory research was to identify the effects of FWAs, i.e., flextime schedule, compressed workweek, and telecommuting on job satisfaction from the perspective of the Ethiopian national employees of the United Nations Economic Commission for Africa (ECA) in Addis Ababa. To achieve this objective both descriptive and inferential statistics were conducted. The total population of the study was 250; out of which, 71% of responses were collected. A primary data collection method was implemented using a structured questionnaire. The analysis showed that there is significant positive effect of flextime schedule (R = .39, R2 = .264, p = .001) and compressed workweek (R = .39, R2 = .159, p = .039). This means that increase in the use of flextime schedules and compressed workweek enhances job satisfaction for employees of the ECA in Addis Ababa. The independent variables reported R = .39 and R2 = .15 which means that 15% of corresponding variations in employee job satisfaction can be explained by flexible working arrangements. Nevertheless, this study found out that there are no significant relationship of telecommuting (R = .39, R2 = .065, p = .398) on job satisfaction. Therefore, since the provision of FWAs is at the nascent stage, further studies on the effect of telecommuting on job satisfaction from Ethiopian employees context are highly recommended.
This study evaluates the impacts of urban road investment and operation in China, especially the spillover effect attributable to the investment of urban road projects. Using the synthetic control method and difference-in-differences technique and taking the opening of Jiaozhou Bay Bridge and its Subsea Tunnel in China on 30 June 2011 as a natural experiment, this paper investigates the causal effect between urban road investment and its economic impacts. Results show that the project has a positive externality in terms of its contribution to the output and employment: taken the industrial relative output as outcome variable, no matter whether the covariates are controlled or not, the parameters of the interactive terms are positive; taken the industrial relative employment rate as outcome variable, the gap between the treated unit and its counterpart indicates a direct program effect for the treated city as well as a spillover effect across the cities within the sample province. Furthermore, the permutation test ascertains that the probability of achieving a spillover effect as large as the treated city is around 5.88 per cent. Overall, the investment and operation of urban road transportation infrastructure has a noticeable spillover effect. Our results are robust across a series of placebo tests.
Poor public management defined by corruption and lack of prudence in public life continues to hold Nigeria hostage and makes good governance difficult. Since the 1980s government has been using many methods including the processes of privatization and commercialization as means of re-engineering the public sector for total quality management, and to increase the share of the public sector’s contribution to the gross domestic product. The experiment never achieved the desired level of success partly due to lack of political will on the part of government to wedge a total war against corruption, and also partly because the public sector is a large scale administration that has many entry and revolving doors which government finds difficult to close. These limitations provide the incentives for widespread public corruption that is recognized as one of the greatest challenges of government in carrying out its mandate. 110 respondents participated in this study conducted through the exploratory research design. The participants provided useful data that were triangulated with data from secondary sources for the purpose of the study. To achieve the objective of the investigation, data were analyzed through statistical techniques and the result showed significant positive correlation between good governance and good management. It was recommended that appointments in the public sector should feature a combination of people from private and public sectors of the economy to enhance competence with the aim of reducing public sector corruption. Further study should examine the reasons behind rising budget deficits as a way of reducing cost of governance in Nigeria.
In this article, we analyze in the Malian context the link between the structure of the shareholding and the sustainability of companies based on data from the census of industrial enterprises of the Ministry of Trade and Industry, 2015. The results show that Mali’s economic opening option in the 1980s, strengthened in the 1990s following the implementation of the Structural Adjustment Programs, resulting in the state’s withdrawal from the management of enterprises, have enabled the emergence of private enterprises in almost all sectors of economic activity. However, shareholding in industrial enterprises has suffered from poor governance. It also shows that the number of women entrepreneurs is close to that of men. Between 2010 and 2014, the majority of shareholders are in the agri-food sector. The majority of the investment is in the metal and metallurgical sector.
The study examined the relationship between non-financial incentives and workers’ motivation in Akwa Ibom State Civil Service exploring five key variables of continuing professional development, performance feedback, employee employment, employee participation in decision-making and task autonomy. Survey research design was adopted involving the use of questionnaire to gather data from 392 respondents drawn from a population of 20465 civil servants in state using Taro Yamene Sample Size Determination Table. The sample was drawn across all ministries and departments through stratified and convenience sampling techniques. Data collected were analysed using descriptive and inferential statistics. Hypotheses were tested at 0.05 level of significance. The five dimensions of non-financial incentives were positively correlated with workers’ motivation from the results of the analysis. Continuing Professional Development (CPD) had the highest correlation value (r = 0.33, P<0.01). Also, the five null hypotheses were rejected implying that the variables of study influence workers’ motivation in Akwa Ibom State Civil Service, Nigeria with beta coefficients and t-values of CPD (0.29;4.313); PF (0.117; 3.500); EE (0.2.141); PDM (0.182; 2.935), and TA (0.231;2.817). It was concluded that since workers’ motivation is a vital tool to organizational effectiveness and growth, employers should explore more of non-financial incentives in formulating and implementing employee benefits related policies.
This literature review is organized in five sections. Firstly, we begin with general ideas and continue with the origin of the fraudulent. Secondly, we discuss the struggle of the phenomena, insisting on the available mechanisms. Finally, we’ll discuss the link between audit and fraud.
Accounting function aims at providing accurate and sufficient accounting information to facilitate proper financial reporting and management performance. Accounting information is usually in the form of periodic or annual financial statements which are products of costing, financial and management accounting prepared for the benefit of a number of external interest groups. Accounting has its roots in the stewardship approach and as a management performance tool to guide the agent and the principal over the exact status of the going concern. Accounting function also involves financial statement analysis, interpreting the accounts by computing and evaluating ratios which relate pairs of financial information or items with one another. This analysis of ratios can be cross-sectional comparing the results of one company with another or trend. In doing so close attention is usually paid to profitability ratio to help keep pace with effective management performance. The exploratory research design was adopted for the study and result showed positive correlation between accounting function and management performance. The study was not exhaustive, therefore, further study should examine the relationship between audit failure and business failure as a matter of finding a solution to the problem. It was recommended that management should always carefully study audit reports to enhance decision making and management performance.
This study examines the effect of the trademark on consumer behavior of consumers of air conditioners in Sudan, in order to know the dimensions of the trademark that affect consumer behavior in Sudan, and provide information to companies on the dimensions of the trademark that affect the purchasing decision of the customer and contribute to customer satisfaction. The study adopted descriptive analytical method using a sample of 230 individuals who consume air conditioners in Sudan. The results showed that there is a positive significant relationship between the trademark of air conditioning and consumer behavior as well as a positive significant relationship between the trademark name of air conditioning and consumer behavior and finally there is a positive significant relationship between the trademark logo and consumer behavior.
In recent years, retired workers eligible for social security receive their emoluments from the appropriate regulatory agency and this provides more realistic evidence on the better living standard of the aged (retirees) under the scheme. Empirically, this paper examines the impact of social security on economic growth in Ghana using time series secondary (monthly) data ranging from 2000 – 2018. The author answers in two questions: 1) how significant are pensioners benefit payments dependent on economic growth and also, 2) how business environmental policy is contributing to economic performance as far as pensioners well-being are concerned. Using STATA analytical software, the findings show a positive significant relationship between social security and economic growth. The study concludes by outlining appropriate policy measures to help strengthen the current social security scheme in Ghana.
This research begins by showing the different meanings attributed to the term cluster by different currents and authors, which suggests definitions that are found around its spatial framework. Next, the factors that intervene in the competitiveness of a region and its growth are shown, for the development of these, Porter’s model of competitiveness which was taken as reference, and the contexts: geographical and economic. Therefore, the methodology was used based on a qualitative design, with descriptive and correlational scope since it will analyze differences of each cluster, with respect to the factors of dimensions, establishments, growth, economic impact and policies. To do this, the information-gathering tool was two semi-structured interviews with cluster leaders in both countries, because the approach is based on data collection methods that are not completely standardized or predetermined. And finally, the results of the comparison of the Mexican Bajío automotive cluster with the German cluster located in Baden-Württemberg are presented.
This research aims at identifying the impact of excellence in drawing up the following four marketing mix strategies (Product, Pricing, Promotion and Distribution) of the small and medium enterprises in Jordan, in terms of their marketing performance in its dimensions (Sales Growth, Profit Growth, Customer Attraction and Customer Retention).In order to reach the results of this study, A total of (187) valid questionnaire surveys were collected from companies belong to the SME Association in Jordan. The Statistical Package for the Social Sciences (SPSS) approach was used to analyze the collected data. The empirical results indicated there is a significant relationship between the building of marketing strategies of the marketing mix elements in the Jordanian SME and their marketing performance, by (sales growth, profit growth, customer attraction, and customer retention) dimensions. Consequently, decision makers in small and medium organizations need to choose strategies based on their target market to the positive impact on the mind of the consumer, which in turn could improve modern scientific methods in SME to divide their markets into sub-market sectors.
The study investigates the impact of team building on organisational productivity. The objective of this study is to evaluate the impact of team building among the members of the selected case study and to assess the effect of training and retraining of team members on organisational productivity. The study also x-rayed the absence of team building in a workplace which led to low levels of turnover and productivity. the total population of the study was 750 while researcher employed Yaro Yamane sampling technique to select sample size of 261 because of the large population and hypothesis were tested using Pearson correlation. The finding revealed that if members of the team can work in synergy without considering the differences in the likes of level of educational background and others, the expected productivity will be very high. It was also observed that capabilities of team leader in carrying out the assigned task determined its output especially if the team leader understands the technical knowhow of job and he is friendly with co-team members with a lot of motivation, that this would definitely enhance employees’ efficiencies and productivities. The study recommends that team members should trust, support and respect one another individual differences in order to accomplish group common goals and tasks.
Compared with general commercial reverse logistics operators, the recovery and treatment of expired drugs and medical waste is a complex and highly technically difficult project. The qualifications required by the relevant service providers are also more stringent. For medical institutions, the selection of reverse logistics operators is always a critical issue. On the perspective of sustainability, this paper aims to investigate and explore the critical factors of selecting a medical reverse logistics service provider. Through the process of the Delphi method, the experts’ assessments were collected, and 24 factors affecting the selection of medical reverse logistics service provider were screened and summarized. Then, Decision-Making Trial and Evaluation Laboratory (DEMATEL) was employed to calculate the total influence values and net influence values between factors that could be used to draw the visual causal map. Referring the causal map, “Green process operation level” and “Recycling process greening degree” are significantly higher than other factors in terms of total influence value and net influence value. Therefore, they can be regarded as crucial factors. This finding implies that medical reverse logistics providers must have the ability to improve the greening of facilities, as well as equipment, integrating existing processes to make it greener and environmentally friendly.
The major objective of any firm is to maximize the shareholders wealth. This is evidence through dividend yield and payout ratio and this encapsulate into the dividend policy of a company. The research purpose aimed at examining the influence that dividend policy has on the volatility of share prices among the listed insurance corporations in Kenya. Research design, approach and method: Data was collected from listed insurance corporations over a 10-year period with a total of 49 data points. The Pearson correlation and ordinary regression analysis were employed. The results reveal the existence of a positive link among the study variables. The correlations were found to be substantial at ninety-five percent confidence level. It is worth noting that the model summary shows forty-three-point one percent of changes in the volatility of stock price are explicated by dividend yield and payout ratio. ANOVA statistics which examines whether the analytical model as set out in the study explains variations in the dependent variable concluded that the model is analytically substantial. The outcome revealed a statistically significant positive link between stock price variations and the ratio of dividend payout. Research also established a statistically substantial negative interrelation between volatility of stock prices and dividend return. Results therefore recommend that companies should have dividend policies which are mapped to shareholders wealth maximization objective. The study suggests further studies be undertaken to determine whether there exists an analytically substantial difference between the dividend policies of various sectors in the economy.
This study is about the impact of selected macroeconomic variables on economic growth of Bangladesh. Economic growth of Bangladesh is measured in terms of annual nominal GDP growth rate. Least squared regression model has been employed considering exchange rate, export, import and inflation rate as independent variables and gross domestic product as the dependent variable in this study. The results reveal that export and import have significant positive impact on GDP growth rate. The other variables (exchange rate and inflation) are not significant, indicating that there exists no significant relationship among the variables. The findings will help the policy makers to make policies concerning the country’s economic growth to remain robust in the near future.
The Research aims on Human Resource Management and innovation has to date relied on a theoretical assumption that there exists an identifiable set of HR practices which organizations seeking to be innovative should adopt. However, analysis of the various prescriptions of HR practices for innovation reveals a high level of internal inconsistency, leading to conflicting advice for practitioners. Furthermore, a review of empirical research on the topic indicates that HR practices within innovative organizations are remarkably similar to those found in the best practice literature This raises questions about the link between strategy and HRM, and about the theoretical foundations of research on HRM and innovation. Drawing on recent research on HRM and firm performance, I suggest that research on HRM and innovation can benefit from incorporating elements from both contingency theory and best practice approaches into the existing configuration theory approach. A change in direction for both theoretical and empirical research on HRM and innovation is proposed. This paper is laid out as follows. In part one, I ask what a strategy of innovation is, and consider what employee behaviors are believed to be consistent with such a strategy. The second section compares and contrasts different authors’ prescriptions of HR practices for innovation, and also compares the findings of research on HRM and innovation with the findings of the best practice approach. In the final part I consider the implications of MY review for future research on this topic. I propose a broadening of the theoretical base on which research on HRM and innovation is founded, and discuss the particular challenges involved in conducting empirical research on HR systems for innovation.
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The evaluation of the environment and the aptitude of out provisions, plans and calculations,
The actions of the competition.
Castañeda (2009), considers a strategy to be a plan that allows a business to obtain important advantages over its
competitors. Similarly, Porter (2008), considers that strategies allow organizations to obtain competitive advantage
in three ways; cost leadership, differentiation and focus. According to Porter a competitive strategy is born out of
optimum understanding regarding the sector’s structure and changeability both on a national and international level
and structure in the sector and he adds that to compete one must manage the following five forces:
The threat of new competitors
The threat of substitute products of services
The capacity to negotiate with suppliers
The capacity to negotiate with competitors
The level of rivalry between businesses
Ross and Kami (1973), define strategies as general action programs which commit resources and emphasis
towards the implementation of a basic mission.
For Steiner (2007), strategies refer to those actions carried out by the leadership of a business in response to
actions or possible actions by the competition.
According to Mintzberg and Quinn (1998) strategies are patterns or models of decisions that determine and
reveal the objectives, resolutions or goals of a company; furthermore these patterns produce the main policies and
plans needed to achieve the aforementioned goals as well as defining the business sphere which the company aspires
to operate within, the type of organization is aspires to be both on a human and economic level and the precise nature
of contributions both monetary and non-monetary that the company intents to provide to shareholders, employees,
customers and communities.
Finally, Hax and Majluf (1996) propose that strategies;
Determine and reveal the core long term objectives of the organization as well as its action programs and/or
priorities regarding allocation of resources
Reflect decisions pertaining to the organization’s line of business
Pursue long-term sustainable competitive advantage by responding appropriately to opportunities and
threats in the environment and managing the strengths and weaknesses of the organization effectively
Identify managerial tasks with clarity at the directorial level
Identify managerial tasks with clary at the functional level
Are unifying, coherent and integral patterns of decisions
Define the nature of both economic and non-economic contributions that the business makes to groups of
interest
Are the expression of a strategic attempt to move the company towards a state of excellence
Are oriented towards the development and strengthening of the company’s substantive competences and
distinct skills which contribute to ensuring sustainable competitive advantage.
In can be concluded through analysis of these definitions that strategy is seen as a cornerstone of all courses of
action that a company may propose. The implementation of strategies will allow for the development of competitive
advantage as well as many other benefits to the company. The formulation of strategies with long-term focus
provides a foundation for all elements that comprise strategic planning.
2.2. Strategy Formulation
According to Mintzberg et al. (1999), the process of strategy formulation can be analysed from the perspective
of ten different schools:
The design school: This school proposes a model of strategy creation that proposes concordance between
internal capacities and external possibilities.
The strategic planning school: This school accepts almost all premises of the previous school with the
addition of highly formal execution, reaching the upper limits of what can be mechanically programmed
The positioning school: This school incorporates content with the aim of highlighting the importance of the
strategies themselves, not just the process through which they have formulated. One of the key exponents
was Michael Porter.
The business school: This school tends to assign the process of strategy formulation exclusively to a single
leader, while promoting innate mental processes and states like intuition, judgement, talent, skill and
perception. It promoted vision.
The cognitive school: This school aims to understand the process of strategy formulation in the sphere of
human knowledge, focusing specifically on the field of cognitive psychology.
The learning school: According to this school, strategies emerge when an individual’s learning about a
specific situation and capacity to organize a response reach the required level.
The power school: This school is characterized by an approach in which strategy formulation is seen as an
open process in which power and political influence are exercised to negotiate strategies favorable to
particular interests.
The cultural school: This school considers strategy creation to be a process deeply rooted in the social
power of culture. It concentrates on the influence of culture on the maintenance of strategic stability
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The environmental school: This school considers organization to be a passive act, a reaction to the
environment. Strategy creation is reduced to a largely reflexive process. This school identifies environment
as one of three main forces integral to the process of strategy creation alongside leadership and
organization.
The configuration school: This school offers the possibility of reconciliation as a way of integrating the
messages of the other schools. It believes that if an organization adopts states of existence, then the creation
of strategies becomes a process of passage between one state and another.
These ten schools can be grouped into four categories. The design, planning and positioning schools are
prescriptive in nature, that is they deal more with the way in which strategies should be formulated than how they are
created. The business, cognitive and learning schools consider factors specific to the process of strategy creation and
have tended to be more interested in describing than prescribing ideal behaviors. The power, cultural and
environmental schools attempt to expand the process of strategy formation beyond the individual and extend it to
other groups and actors. And finally, the configuration school which is essentially a combination of all the other
schools.
According to Porter (1995), the importance that a business confers to strategic planning reflects the extent to
which it believes that substantial benefit is to be gained from the explicit formulation of strategies through which the
company can guarantee that the policies (if not the actions) of its operational departments are coordinated and
channelled towards a series of shared goals. Porter states that strategy design involves the creation of a general
formula expressing how a company intends to compete, what goals it aspires to and what policies are required to
achieve them.
Steiner (2007), considers that a process of strategic planning can have a variety of starting points, however,
sooner or later all the elements of the strategic planning model being used must be covered, be that explicitly or
implicitly. Steiner highlights the following starting points for formal strategic planning:
Company mission
Luck
Identification of opportunities, potential pitfalls and weaknesses
Objectives
A problem
Moment of intuition
Forecast and compilation of systematic data
Research and development
Strategy
Products and/or markets
Opportunism
Once a strategy has been defined and the formation process has been described, the next stage is to define the
concept of the planning strategy and its component parts.
2.3. The Components of Strategic Planning
For Mintzberg and Quinn (1998), the elements of strategic planning are as follows:
Mission: Statement that reflects the fundamental objectives of the business
Values: Series of statements that reflect the fundamental principles under which the business should operate
Strategy: Pattern or plan that integrates the principal goals and policies of an organization while establishing
a coherent sequence of actions to be carried out
Goals or objectives: These establish what is to be achieved and when the results can be expected without
focusing on the how.
Policies: Rules of guidelines that express the limits within which the actions should be taken.
Programs: These establish the sequence of actions necessary to achieve the principal objectives.
Strategic decisions: These establish the general orientation of a business and its ultimate viability in the light of
the predictable, the unpredictable and the known and unknown changes that may occur in its most immediate
surrounding environments which are considered sustainable.
According to Ramírez and Cabello (1997), the first tool that a business should implement to transform itself into
a competitive organization is strategic planning, this way it will be possible to clearly determine the desired direction
whatever the starting point may be, and plot a strategic course towards the accomplishment of the mission.
According to Pacheco (2006), strategic planning is the process through which the senior management of an
organization may be able to predict the future and develop adequate procedures and operations. This author
describes how the strategic administration process can be divided into five different components;
Selection of the mission and main corporate goals
Analysis of the external competitive environment to identify opportunities and threats
Analysis of the internal operational environment to identify the strengths and weaknesses of the
organization
Selection of strategies that are based around the organization’s strengths and intended to correct weaknesses
with the aim of taking advantage of external opportunities and counteracting external threats
The implementation of the strategy.
Sielinski (2007), states that a basic strategic planning process should contain the following elements:
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Create a mission
Create a vision
Establish goals
Identify strategies
Create action plans
Follow up and update the plan.
According to Castelán (1985), strategic planning is a continuous process which involves a defined sequence of
steps during which use is made of the company’s own information as well as external data from all of which a
selection is made. Hellebust and Krallinger (1991), suggest that a strategic plan deals with planned movement from
an understood present towards a desired or probable future with objectives set over the course of several years. In
order to have success, an administrator should be able to develop the motivational and organizational strength
necessary for this movement. They mention that the strategy is broken down into annual segments and, as each year
passes, the next one is already detailed in the annual plan or budget. Likewise, the authors state that customers, via
the market, vote with their money for the products and services that they feel can best satisfy their needs. The
businesses that prosper are those that dedicate themselves to satisfying those needs.
According to these authors, to prepare a good strategic plan the directorship must have a good understanding of
the company’s past, that is to say, it becomes difficult to discern the direction in which to take the business if there is
no understanding of where the business has been ad how it got there. To have knowledge of the business’s past
implies having a good understanding of:
Human resources
Products
The market and its segments
The manufacturing process
Research and development
Investment
Public and government relations.
Hellebust and Krallinger (1991), highlight the need to understand the present and in turn comprehend possible
future alternatives. Selecting an objective is therefore a question of choosing one of the possible futures
corresponding to the business. The fact that an objective is reachable does not mean that it will be reached. It is
necessary to take into account and make good use of the available resources.
For Arranz (1995), strategic planning is a route towards achieving the vision that senior management have in
terms of long, medium and short-term goals for the organization, the staff and the wider community. Strategic
planning should be geared towards analyzing the present, choosing a future, evaluating programs and controlling
actions corresponding to the implementation of plans. Strategic planning requires a particular mindset in order to
imagine future scenarios and produce the ideas, planning ability and decision making capacity necessary to make
them happen.
For Arranz (1995), the mission reflects the commitment of the organization, determines its function and
establishes the concept of the enterprise in which it participates. The mission is a concise description of what the
organization does and what the characteristics are that allow it to provide goods and services to or satisfy the needs
of its customers within the framework of its environment. Generally speaking the mission statement is formulated in
terms of the generic product and its principal market, in order to balance the general with the specific.
From the point of view of Dussel et al. (1997), the basis for the growth and permanence of a company is the
design of strategies that make it competitive and this is achieved through a process of planning and control that
involves everybody from the owners, directors and managers to last staff member from every division, which is why
it is so important to establish area-specific goals and objectives which align with the trajectory which has been set by
the company’s leadership.
The same authors stress that strategic planning is an executive activity which- despite many individuals making
claims as to its usefulness- is not easily explained in terms of the details of its implementation. Planning is one of
those activities which is easily talked about but much harder to put into practice. According to Martínez (2002),
strategic planning is the logical response to the need to scrutinize a complex, changeable and uncertain future.
Martínez (2002), states that the solution to this uncertainty is not straightforward, largely because of the many
external variables at play within a given business ecosystem. Upon these variables managers of course have no
control, however they can and should respond through strategic planning. An uncertain and changeable future is
further complicated by the interdependent relationship between environmental forces and trends which throw up
complex phenomena of considerable qualitative significance, and when appropriately analyzed, these phenomena
allow planners to build future scenarios which are tailored to the organization and its products, customers,
competitors and technological resources. The quality of any response in the future is determined by the appropriate
interpretation of the forces and trends enacted in the present. Regardless of the wording used, the central idea of any
piece of strategic planning is the notion of ordered transition from the position in which the organization finds itself
currently to that in which it desires to find itself in the future. In addition, Martínez (2002), establishes that strategic
planning is in fact a process of decision making at the highest level whose complexity is attributed to the variety of
strategic choices and options required to fulfil a long-term objective. These choices are complicated by the
modalities which are established when strategic factors become intermingled, these factors can of course vary greatly
as a result of the uniqueness of the approach taken by senior management and their willingness to embrace change.
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According to Rodríguez (2005), strategic planning is the sum of an organization’s integral plans which
normalize specific behaviors going forward.
According to Beal and Apfelthaler (quoted in Quintal (2005), p.41), as the functional activities and areas of the
organization become more complex, so the strategic planning will consequently need to be developed over a series
of phases: firstly simple financial plans and budgets; followed by planning based on forecasts; and finally externally
oriented planning.
Steiner (2007), defines formal strategic planning by considering four different points of view, each one essential
in order to gain a full understanding of it:
Strategic planning deals with the future consequences of current decisions, meaning that strategic planning
observes a chain of cause and effect during a specific period, related to real intentions or decisions made by
the director. Strategic planning also observes possible alternatives to future courses of action and, upon
talking certain alternatives, these become the basis for decision making in the present.
Strategic planning is a process which begins with the establishment of organizational goals, it defines
strategies and policies in order to reach these goals, and it develops detailed plans to ensure the
implementation of said strategies and achievement of the desired outcomes. It is also a process for deciding
in advance what kind of planning efforts should be made, as well as when and how this should be done,
who should do it and what should be done with the results. Strategic planning is systematic in the sense that
it is organized and conducted based on a perceived reality.
Strategic planning is an attitude, a way of life, it requires dedication in order to act based on observation of
the future, and determination in order to plan constantly and systematically as an integral part of
management. As well as this, it represents a mental process, an intellectual exercise much more than a series
of processes, procedures, structures or prescribed techniques.
A system of strategic planning unifies three fundamental types of plan: strategic plans, medium-term
programs, short-term budgets and operational plans. Strategic planning is the company’s systematic and
usually formal effort to establish its purposes, objectives, policies and basic strategies and thus develop
detailed plans with the aim of putting into practice policies and strategies so as to meet the objectives and
basic resolutions of the company.
Steiner (2007), mentions that there is no such thing as a single planning system which all organizations can
adopt, instead systems must be designed and adapted to the particular characteristics of each company. Most authors
agree that strategic planning is a long-term procedure which consists of developing certain objectives and ways of
meeting them in order to arrive at the desired result. However, this procedure is not static but rather something that
can and must be monitored over a long implementation period with the aim of detecting and correcting possible
errors. Strategic planning can be applicable to any type of business; however, care must be taken to adapt it to the
characteristics and conditions of the business in question.
2.4. Characteristics of Strategic Planning
According to Castelán (1985), there are two characteristics of strategic planning and its long-term focus:
Uncertainty: Because the direction of the business will normally have less than perfect information about
the environment, the competition, consumers and even its own potentialities.
Decisions: Whatever the situations of uncertainty which the leaders of a company must confront, it is
imperative for them to calculate risk and be decisive based on all available information.
According to Mintzberg et al. (1999), the premises of the planning school are:
The strategies should be derived from a controlled and conscious process of formal planning, split into clear
stages (each of which delineated into checklists) and grounded in techniques
In principle, the responsibility for this general process rests on the shoulders of senior directors; in terms of
its practical execution those responsible are planning managers.
Thanks to this process, strategies will be completely finished and ready to be made explicit so that they can
be put into practice while paying close attention to objectives, budgets, programs and operational plans of
many kinds.
According to Rodríguez (2005), strategic planning is long-term planning which focuses on organization as the
priority, along with the following characteristics
Activities in which senior management take part
Dealing with basic questions
Offering a framework for detailed planning and for everyday managerial decisions
It is based on long-term planning
It analyzes the internal and external environment of the company.
2.5. Benefits of Strategic Planning
For Steiner (2007), some benefits of strategic planning are:
It is essential for meeting the responsibilities of senior management and directors
It forms and answers important questions for a business
It brings a combination of decisive forces into the business by:
1. Simulating the future
2. Drawing focus onto systems
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3. Demanding the establishment of objectives
4. Revealing and clarifying opportunities and possible future dangers
5. Providing a structure for decision making across the company
6. Acting as a base for other directorial functions
7. Measuring performance
8. Highlighting matters of strategic interest
It provides behavioral benefits in several ways such as:
1. Improving channels of communication
2. Involving directors in training
3. Increasing a sense of participation
Quintal (2005), considers that among the most important benefits of strategic planning are the following:
Improving organizational efficiency and effectiveness
Building an expert team
Improving decision making with external perspective and a broad internal base
Improving communications and public relations
Providing political support
Increasing employee productivity
Reinforcing an organization’s capacity to prevent problems
Providing a training process for directors
Creating a sense of participation at all levels
Providing greater capacity for dealing with situations of uncertainty
Spotting opportunities and threats that are generated in the environment
Identifying strengths and weaknesses
Producing strategic information for decision making
2.6. Limitations of Strategic Planning
According to Mintzberg et al. (1999), there are three falsehoods associated with strategic planning:
The predetermination fallacy: Strategic planning doesn’t just require the monitoring of forecasts; it also
requires stability during the creation of the strategy itself. Good strategies aren’t necessarily conceived
through immaculately orchestrated programs. In an organization with the capacity adaptability they can be
drawn up anytime and anywhere. If strategy means stability, then strategy making means interference-
unexpected interference.
The detachment fallacy: If the system does the thinking, then thought must be detached from action,
strategy from operations (or “tactics”), formulation from implementation, thinkers from doers, and so
strategists from the objects of their strategies. The above is entirely false, detached managers and abstract
managers don’t simply make bad strategies, they mostly make none at all. Effective strategy creation
connects actions with thoughts.
The formalization fallacy: Research shows that strategy creation is a tremendously complex process that
takes in the most sophisticated, subtle and sometimes unconscious processes of human and social
knowledge. This can be seen time and again in all kinds of data sources, many of which are not quantifiable
and are only accessible for strategists who have their feet firmly on the ground. They are processes that
don’t follow a predetermined program or blueprint. Inevitably, effective strategists exhibit certain
outstanding qualities and, although they act with a degree of premeditation, they usually put formal plans to
one side in order to appear as informal visionaries.
Steiner (2007), talks about several limitations to strategic planning which are:
The environment can turn out differently to that which was forecasted.
There might be internal resistance.
Planning is expensive.
There may be momentary crises.
Planning isn’t straightforward.
Completed plans limit options.
There may be limitations imposed on the situation which are different to those inherent to strategic
planning.
Funston and Ruprecht (2007), mention that one of the risks that come with strategic planning is achieving
different results to those that were desired. Strategic planning is important and at the same time intimidating. The
growth of risk and uncertainty seems to be driven two major factors: speed and connectivity. The former refers to the
pace at which the environment and conditions in which the business finds itself change. By turn connectivity refers
to the fact that in the current global economy, any change in any organization could have knock-on effects for other
companies in other fields and regions.
2.7. Models for Strategic Planning
Mintzberg and Quinn (1998), state that the main steps in a strategic planning program are:
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Setting of objectives: this consists of creating a thorough set of procedures to explain- and if possible,
quantify- the objectives of an organization.
External verification: this is an important element for checking the external conditions of an organization
and comes from the array of forecasts made about the future.
Internal verification: this consists of studying the specific strengths and weaknesses of the organization
itself
Strategy evaluation: This deals with how well the evaluation process lends itself to being designed and
rated. There are plenty of technologies ranging from rudimentary return on investment calculators to a
succession of modern techniques like competitive strategy evaluation, risk analysis, value curve and a range
of methods associated with calculating value for shareholders. As their names suggest, most of these are
aimed at financial analysis.
Strategy implementation: this gives rise to a series of hierarchies which exist across different levels with
different time perspectives. Wide-ranging, long term strategic plans take priority over medium-term plans,
after which come short term operational plans for the coming year.
Deadlines across the whole process: Not only should the stages of the process be scheduled, but also the
precise times at which they must be completed.
Ramírez and Cabello (1997), describe a model for carrying out strategic planning, which includes eight steps.
This model is made up of three main points which answer the following questions: Where are you currently? Where
do you want to go? And, how do you plan to get there?
Defining where you want to go involves two stages: defining the mission of the business and defining the
values of the business.
Reflecting on where you are currently involved identifying the business, analysing the industry, identifying
the basic factors of competition and identifying strengths and weaknesses
Understanding how to get where you want to go involves definition of a strategic direction – based on the
current situation - alongside the creation of action plans.
Mintzberg et al. (1999), present a strategic planning model built on four hierarchies which are: a hierarchy
assigned to objectives, another hierarchy assigned to budgets, another for strategies and lastly one for programs that
goes under the title planning for action. These hierarchies take responsibility for early decision making in order to
encourage certain behaviors. As well as these we have those objectives and budgets referred to as performance
control which are designed to evaluate the results of actions. In the fully developed model, the objectives promote
the formulation of strategies which, in turn, generate programs whose results influence budgets in an attempt to
exercise control.
According to Castañeda (2009), a strategic plan must be designed in the following manner:
Mission: The director defines the function of the organization and the values it represents
Vision: The director puts in writing what he/she imagines the business can be in a specific time frame (one,
five, ten o more years)
The director defines the overriding objectives derived from the mission and vision
The director, based on the mission, vision and objectives of the business, decides how they are to be
optimally achieved while at the same time looking to differentiate the business from those with which it
competes. In order to reach an acceptable strategy formulation (the “how”), consultations are made with the
board of directors as well as staff from other levels of the company. In addition, analysis is done to
understand the strengths and weaknesses of the business as well as the threats and opportunities both real
and potential that exist in the market
Business model: The director defines with greater precision the various aspects of the strategy with special
emphasis on what customers the business has and how to offer them greater value than that offered the
competition. The model includes every stage along the chain of value: design, adquisition of materials,
manufacture, logistics, distribution, promotion, sales, collecting of payments and after-sales service.
Action plan: The director and his/her team prepare specific action plans for each function of the business, in
order that these may align with the business model, the strategy, the vision and the mission. Each plan
stipulates who is responsible for the tasks and the corresponding calendar of implementation to which they
will adhere. The various departmental directors come to an agreement and their respective managers do the
same.
Implementation: The director provides frequent follow-up monitoring (at least once a month, more often for
key processes) and in the case of non-compliance takes actions including removal of staff regardless of their
rank within the organization. Inefficiencies from a single element cannot be allowed to jeopardize the entire
strategy implementation. In such cases plans can be adjusted as necessary.
3. Discussion
Numerous authors such as Mintzberg, Porter, Pacheco, Ramírez, Cabello, Arranz, Rodríguez, Dussel, Piore,
Ruíz, Hellebust and Krallinger see strategic planning as a tool or procedure used by businesses to establish the
objectives to be met in order to reach a desired end. Strategic planning generally contains a vision of the future as
well as long-term goals. As stated by Martínez (2002), strategic planning is not a method in which specific
techniques or inflexible methods and procedures are utilized for the creation of a plan. There is a generalized belief
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that strategic planning is applicable only to large-scale businesses, however- as shown by Rodriguez and Steiner it is
equally adaptable to smaller businesses, as long as their needs and characteristics are taken into account.
4. Results
Strategic planning is not a universal formula for every business; it depends on myriad factors and traits that
define the business to which the planning is to be applied. Nor is it a question of exclusively using quantitative
models or variables, and it does not refer to the decisions that will need to be taken in the future nor the formulation
of forecasts.
Strategic planning is important to an organization because it provides a sense of direction and outlines
measurable goals. Strategic planning is a tool that is useful for guiding day to day decisions and also for evaluating
progress and changing approaches when moving forward.
The process of strategic planning can be as important to an organization as the results. Strategic planning can be
an especially valuable process when it includes employees in all departments and at all levels of responsibility
thinking about how their activities and responsibilities fit into the larger picture, and about their potential
contributions.
5. Conclusions
Today there are several off-the-rack strategic planning models designed for direct implementation, however, as
we have said previously, it is imperative that the be properly analyzed and adapted to the precise conditions and
characteristics of the small business or, more generally, to any type of business for which the planning is intended.
Strategic planning is not the only reason for success, but there have been several studies which show that firms
that plan their strategies are more effective. Taking the relationship of strategy and success as given.
All strategic planning efforts need to be reinforced by practices that follow the key growth and market
orientations, and have company-wide support.
Precisely formulating vision and strategy, incorporating the elements of internationalization and networking in
the firm vision, focusing on growth, profit, and market, performing analyses of market and competition, precisely
formulating generic business strategies, and achieving company-wide support for strategies can all be beneficial for
the growth of firms.
We thank the two anonymous reviewers whose comments helped improve and clarify this manuscript.
References
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Empresariales, S.C.: México.
Castañeda, L. (2009). Alta dirección en las Pymes. Ediciones Poder: México.
Castelán, B. (1985). Planeación estratégica y control de gestión su interacción. ECASA: México.
Dussel, E., Piore, M. Y. and Ruiz, C. (1997). Pensar globalmente y actuar regionalmente. Hacia un nuevo
paradigma industrial para el siglo XXI. UNAM: México.
Funston, R. Y. and Ruprecht, B. (2007). Risk in the strategic planning process. Extraído el 18 de julio de 2020
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