Why No Organization Should Be Devoid Of A Formal Business Strategy
The world is in a constant state of flux and things change almost on a daily basis. Trends change almost overnight and new products and technology is introduced all the time. This means that enterprises have to satisfy new demands all the time. This can be difficult for enterprises that are not future oriented. A detailed business strategy is the only way in which corporations and any other organization can hope to anticipate new trends and markets.
It is especially larger enterprises that consist of a number of trading units that are vulnerable to change. If there is no strategic plan that directs the activities of the various units, then they can easily work against each other, rather than as cohesive cogs in a big machine. A strategic plan can help to ensure that each unit works to the advantage of both itself and the other units in the stable.
All organization, large and small and regardless of its purpose needs a strategic plan. This is because each organization is striving towards a very specific goal and it is almost impossible to achieve any goal or objective without a practical plan. A strategic plan is therefore a guideline that is developed to make sure that the organization keeps moving in the right direction.
There are numerous factors that need to be taken into consideration when developing a strategic plan. External environments that have a decided influence upon the organization needs to be studied. These environments should include the technological, international financial, political and social environments. It is then necessary to list the ways in which developments in each environment can have an impact, positive or negative, on the organization.
The inner workings of the company must also be analyzed. It is necessary to identify threats to the company and to recognize distinct opportunities. Plans must be made to avert threats and opportunities need to be exploited as best possible. It is furthermore necessary to identify the weaknesses of the company and its particular strengths. Plans can then be made to build on the strong points and to eliminate the weak ones.
The development of a strategic plan is a complex business and can hardly ever be done by a single person. Most corporations therefore hire external experts. Independent experts are less likely to be biased, threatened or subjective. It remains important, however, to be actively involved in the process because those inside the company have a better idea of where the organization wishes to go.
No strategic plan can ever be deemed to be completed. The world keeps changing and a myriad of environmental changes take place almost every day. These changes all have an influence upon the ability of the company to progress towards its goals. Changes must therefore be incorporated into the strategic plan, which will always be a work in progress.
Nobody can anticipate the future and that is why no strategic plan can ever be said to be complete. However, careful study of trends can help businesses to identify future trends and developments. The earlier they prepare for those changes, the best they will be able to use the change to their own advantage.
It is especially larger enterprises that consist of a number of trading units that are vulnerable to change. If there is no strategic plan that directs the activities of the various units, then they can easily work against each other, rather than as cohesive cogs in a big machine. A strategic plan can help to ensure that each unit works to the advantage of both itself and the other units in the stable.
All organization, large and small and regardless of its purpose needs a strategic plan. This is because each organization is striving towards a very specific goal and it is almost impossible to achieve any goal or objective without a practical plan. A strategic plan is therefore a guideline that is developed to make sure that the organization keeps moving in the right direction.
There are numerous factors that need to be taken into consideration when developing a strategic plan. External environments that have a decided influence upon the organization needs to be studied. These environments should include the technological, international financial, political and social environments. It is then necessary to list the ways in which developments in each environment can have an impact, positive or negative, on the organization.
The inner workings of the company must also be analyzed. It is necessary to identify threats to the company and to recognize distinct opportunities. Plans must be made to avert threats and opportunities need to be exploited as best possible. It is furthermore necessary to identify the weaknesses of the company and its particular strengths. Plans can then be made to build on the strong points and to eliminate the weak ones.
The development of a strategic plan is a complex business and can hardly ever be done by a single person. Most corporations therefore hire external experts. Independent experts are less likely to be biased, threatened or subjective. It remains important, however, to be actively involved in the process because those inside the company have a better idea of where the organization wishes to go.
No strategic plan can ever be deemed to be completed. The world keeps changing and a myriad of environmental changes take place almost every day. These changes all have an influence upon the ability of the company to progress towards its goals. Changes must therefore be incorporated into the strategic plan, which will always be a work in progress.
Nobody can anticipate the future and that is why no strategic plan can ever be said to be complete. However, careful study of trends can help businesses to identify future trends and developments. The earlier they prepare for those changes, the best they will be able to use the change to their own advantage.
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posted by Vittoria @ May 02, 2014
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