DQ #1: Select a small business that you may want to start. What is strategic management and planning? Why would a strategic plan be important to the success of this business? How are the four functions of management relative to creating and implementing a strategic plan?
I want to start an e-commerce sales business. The strategic management and planning guidelines for this kind of business include the following:
Planning - As an owner, I will analyze the direction the organization will go and create core objectives for the business. The objectives will help the company stay on track and assist in any unexpected developments that may arise down the road and short-term and long-term goals are designed.
Organizing - We will analyze our resources and determine the volume of products to purchase and the individual cost to generate profits. We will also review how many employees will be needed.
Directing - Our managers will be tasked with the responsibility of encouraging positive behavior from employees to create production that leads to higher profitable margins. Managers will implement a reward system for consistent high producers.
Controlling - The entire team will survey the operation and gauge areas that may require improvements or adjustments to maximize sales volumes. The team will also use the same goals and objectives that were previously established to review any issues or concerns and confirm that any negative feedback that may have been received is addressed.
A strategic plan would be very necessary and important for this business to solidify a position in the e-commerce industry where customers can shop for quality products and the company will earn profits, while instilling great customer service. The four functions of management are relative to creating and implementing a strategic plan so all areas are balanced and functioning in conjunction with the expectations of the business.