Strategic Enterprise Planning for Management - myassignmenthelp

Question: Discuss about theStrategic Enterprise Planning for Business and Management. Answer: Introduction Organizations plan in order to take advantage of the future opportunities and benefits. This calls for proper strategic planning for the organizations to align their performance with the set goals. This personal reflection will discuss how strategic enterprise planning impacts the performance and the operations of the business. Strategic enterprise planning process is usually employed by the businesses specializing in service provision(Vancil Lorange, 2015). Ideally, it involves on focusing on the processes needed to develop strategies and plans for the service provider business. The planning process involves applying a strategic planning that will determine the focus and the business of an enterprise(Schoeffler, Buzzell, Heany, 2014). Moreover, there are crucial issues such as marketing the enterprise, the financial requirements, information technology needs and others that should be put into consideration during strategic planning. Enterprise planning establishes and coordinates all the essential critical activities that will facilitate the working of the business with all major units of the enterprise. The process and activities observed during the strategic planning assists in driving the enterprise' mission, vision, objectives, and goals. The importance of the strategic enterprise planning in the business context cannot go unnoticed. Based on its simple definition as the roadmap that an organization relies on to execute its strategy, the strategic enterprise planning helps the businesses to achieve their businesses efficiently and effectively. An element of plan embraced in the strategic planning illustrates the direction of the organization in future. According to Kraus, Harms, Schwarz (2012), a strategic plan is one of the most management fundamental tools that help the organization to execute an excellent job. This is because strategic planning ensures that resources are allocated appropriately, and people within the organization align their time and energies with the focus of the organization. With strategic planning in place, the roles of each employee in the business are well understand and therefore, reducing the probability of consultations and confusions. In fact, strategic enterprise planning determines whe re the organization will be either in a year or after a few years to come. All organizations ranging from multinational corporations to the small businesses have limited resources. To make sure that the available resources are used efficiently and for the benefit of the organization to achieve its objectives, there is a need to have a sound strategic plan in place. The realization of this plan demands proper planning process that will provide information to the senior management about the organizational needs to make right decisions on how to allocate the available resources. Without a strategic plan in place the resources will be wasted, under productivity will take place and therefore the realization of the organizational goals may continue to exist as a mere and invalid dream. Henry Mintzberg Theory attributes the success of any business to the strategic business planning(Karel, Adam, Radomr, 2013). Strategic enterprise planning largely exists so that it can set organizational goals. Besides, the strategic enterprise planning ensures that the set goals are challenging to everyone in the organization so that they can improve their performance. However, as much as it is important to have for an organization to set goals, it must ensure that its goals realistic and aggressive. Organizations will lose their competitive advantage to their competitors if they do not establish goals that will challenge their employees to improve their performance. Strategic planning will also help the organization to compare the planned results with the actual results. Managers will use strategic plan to identify the variances from the planned results to rectify the differences. It is evident that organization run in the dynamic environment that is full adverse effects and risks(Raduan, 2012). Even with a strategic plan in place, there are circumstances whereby risks that can hamper the progress of the organization can set in. The management of risk is crucial to the success of any organization. Irrespective of the size of the business it is important to have a good strategic plan to be able to deal with the changing economic and competitive environments surrounding them. The inclusion of the strategic planning in the running of the enterprise will help the organization to have alternatives and prevention in place to cater for the changes and risks if the plans in place to do go as anticipated. Findings connote that organizations thrive largely on team building(Karabulut, 2010). Strategic planning enhances the spirit of cooperation through team building. Once the strategic plan has been completed and communicated to everyone in the organization, each one knows his or her responsibility and the areas where his or her expertise will be needed. Team building will result in the overall organizational success. This is contrary, to the individual responsibility whereby the performance will be much lower than a collective responsibility that is realized through teamwork. According to Five Forces Theory by Michael Porter, organizations thrive through competitive advantages(Raduan, 2012). It is a competitive enterprise advantage that will determine its position in the industry as well as its market share. Before establishing a strategic plan, the organization will assess its environment to determine its current weaknesses and strengths in reference to its potential and major competitors. The organization can use its strengths when establishing its strategic plan. This means the business will employ its strategies in line with its strengths to achieve its target goals. On the other side, the business can study the competitor vulnerabilities to build marketing strategies that will take advantage of the rival weaknesses. Using the strategic plan to identify the competitors marketing techniques can also help the business to identify opportunities that have not been tapped by the competitors. Conclusion Just like any other management tool that improves the performance of the business, strategic enterprise planning tool is one of the most viable strategies that organizations can use to claim prosperity. Strategic enterprise planning will help to increase the organization value chain through efficient use of resources. Strategic planning also provides the direction an organization will take through establishing goals that are in line with the vision and mission of the company. Strategic enterprise planning will also help in managing the risks, team building and creating competitive advantages. References Karabulut, A. T. (2010). Impact of Strategic Planning on Financial Performance of Companies in Turkey. International Journal of Business and Management, 5(4), 3-11. Karel, S., Adam, P., Radomr, P. (2013). Strategic Planning and Business Performance. Journal of Competitiveness, 5(4), 57-72. doi: 10.7441/joc.2013.04.04 Kraus, S., Harms, R., Schwarz, E. J. (2012). Strategic Business Planning and Success in Small Firms. International Journal of Entrepreneurship and Innovation Management, 8-22. doi:10.1504/IJEIM.2008.022311. Raduan, C. (2012). A Conceptual framework of the relationship between organizational resources, capabilities, systems, competitive advantage and performance. Research Journal of International Studies, 12, 45-58. Schoeffler, S., Buzzell, R. D., Heany, D. F. (2014, March 14). Impact of Strategic Planning on Profit Performance. Retrieved from Harvard Business Review: https://hbr.org/1974/03/impact-of-strategic-planning-on-profit-performance Vancil, R. F., Lorange, P. (2015, January 12). Strategic Planning in Diversified Companies. Retrieved from Harvard Business Review: https://hbr.org/1975/01/strategic-planning-in-diversified-companies