Business Internal Organizations
Strategic planning is the process followed by an organization in which it defines its strategies and makes plans for proper allocation of its available resources to achieve its objectives. While developing a strategic plan, it is essential to consider the various internal organizational factors in order to help the plan succeed. The internal organizational factor comprises of mission, vision, values and guiding principles, strategy and strategic objectives of the organization. Before creating any strategic plan, it is essential to know where the company is standing and where the company intends to go. The company must look at their have a look at the mission statement and the vision statement of the organization and then they must match it with the required demands and then frame the strategic plan. The mission statement depicts the purpose that an organization has and vision statement determines the future by formulating a picture of the organization. Therefore, they are the most important internal considerations for the development of a strategic plan .
What are the primary external organization considerations for the development of a strategic plan? Which consideration is the most important? Why?
For the development of a strategic plan, external considerations are important because a plan will cover the entire aspects of an organization. This includes its internal as well as external aspects. The external aspects include customers, competition, technology, supplier market and labor market. All these factors need to be given due consideration as the external environment tends to have an alarming effect on the business. A business can run smoothly only when plans are made in accordance with the different external factors. Among these factors, the most imperative factor is the customers as they are the ones who play a vital role in shaping the business and taking it to greater heights. Therefore, it is the responsibility of every business to understand the changing needs and preferences of the customers from time to time so that they can be provided with the satisfactory products and services
What are the key planning factors for competitive success? Provide an example of an organization that
has achieved competitive success through planning. Provide an example of an organization that has failed
to achieve competitive success as the result of failed planning.
Achievement of competitive success is the dream of any business. It solely depends upon several key
Achievement of competitive success is the dream of any business. It solely depends upon several key planning factors which play an effective part in the success of the business. These key planning factors are as follows: Advertising is an effective tool in attracting customers towards the business and increasing the share of profit. Therefore, strong advertisement is important. Providing goods at low prices gives competitive edge over its competitors. Good quality products are highly demanded by the customers. Therefore, meeting their needs through high quality products will add to the company's success. Continuous innovation in the organization by the development of new products and services helps the organization to move ahead.
The example of an organization that has achieved competitive success through planning is Wal-Mart. It is well known that Wal-Mart has a large number of stores around the world and its products occupy a place of great significance. Its branches and stores could be easily found in each and every part of the world. This is the result of an efficient planning system followed by Wal-Mart that has brought it so far successfully. Its objectives comprises of satisfying the customers with the world's finest products.
The example of an organization that has failed to achieve competitive success through failed planning is McDonald's. In its initial stage, when it started its operations in India, it faced a major setback. This was mainly due to the failed planning strategies of the organization. It could not frame proper objectives regarding its launch in a new country .