Importance of Strategic Planning and Management

Topics: Management, Strategic management, Strategy Pages: 3 (805 words) Published: August 21, 2008
Importance of Strategic Planning and Management
To own a business was and still is a childhood dream that I have wanted to pursue. I have always wanted to be a CEO of a huge corporation. I figured that if I were going to work, I would rather make money for myself than to make it for someone else. When you're making money for yourself you tend to love the job more than if you are working for someone else. One small business that I have thought about starting is an online used car dealership. It’s a pretty simple idea, and can be pretty automatic. I would purchase one or two cars a week at an automobile auction, clean the vehicle up and then list it online. It would defiantly be a family run business, as I would involve my children in the process of cleaning up the cars, and bringing the cars home from the auction. Strategic management and planning

“Strategic management can be defined as a set of decisions and actions that result in the formation and implementation of plans designed to achieve a company’s goals and objectives” (Pearce and Robinson). Strategic management involves nine essential tasks: 1.Formulating the mission of the company, to include statements about its purpose, philosophy, and goals. 2.Analyze the company’s conditions and capabilities internally. 3.Assess the company’s external competitive and contextual factors. 4.Analyze the company’s resources by matching it with the external environment. 5.Identify desirable options by evaluating each option in the company’s mission. 6.Select a set of long-term objectives and strategies that will achieve the most desirable options. 7.Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and strategies. 8.Allocate the matching of tasks, people, structures, technologies, and reward systems. 9.Evaluate the success of the strategic process as a way of making future decisions. Importance of a Strategic plan

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References: Pearce, J., & Robinson, R. (2005). Strategic Management (9th ed.).Boston, MA: McGraw Hill.
Rane, S. (2007, 09, 12). The Four Functions of Management: Foundation for All Management Concepts. Retrieved June 8, 2008, from Web site:
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