University of PhoenixStrategic management and planning is a very important part of all businesses. Without strategic management and planning most businesses will fail. Each business has had a strategic plan formulated at one point. After the plan is formulated then it is implemented and finally controlled.
Strategic Management and PlanningStrategic management and planning is defined as "the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives" (Pearson and Robinson 2004).
The plan is made up of nine tasks:•Making the companies mission•Analyzing the companies internal condition and capabilities•Assessing the companies external environment•Analyzing the companies options by matching the resources with the external environment•Finding the most desirable options by comparing them to the companies mission•Find some long term objectives and grand strategies that will achieve the most desirable options•Develop annual objectives and short term strategies that are compatible with the long term objectives and grand strategies•Implement the choices by means of budgeted resource allocations•Evaluate the success of the process so that there is something to go off of for future decision makingThese nine tasks will help one succeed in starting a business. Following through with the plans and changing things that need changed will help the business to continue growing.
Simple PleasuresSimple Pleasures is a Day Spa/Salon that will take care of many needs. This spa is a place where one can come to relax and be pampered. Simple Pleasures will have hair stylists, nail technicians, estheticians, and massage therapists as well as offering hair and skin products for sale. When operating a business such as Simple Pleasures, a strategic plan is very important. One needs to be prepared when going into a business and a strategic plan is there to help keep one on track.
Four functions of ManagementThere are four functions of management relative to creating and implementing a strategic plan. Planning, organizing, directing, and controlling make up those four functions of management.
PlanningPlanning is the first function used in this process. This is the base of the strategic plan. Planning is the process used to identify and select goals and courses of action that the manger would need to take.
OrganizingOrganizing is the second function in making a strategic plan.
Organizing is a detailed list of the goals that the company wants to attain. This allows everything to be lined up so that one knows what objectives are to be reached.
DirectingDirecting is where the manager is influencing the staff and helping them achieve the company's goals. This is important as well because you can be organized and have a good plan but without someone directing the staff, the plan will never be implemented.
ControllingControlling establishes performance standards based on objectives. The manager also evaluates and reports job performances. This allows the manager to know what needs to be changed in the future to make things operate more efficiently.
If a business tried to operate without implementing a strategic plan many things could go wrong. Anyone can open a small business but not everyone will succeed. The ones that succeed tend to be the ones that are the most organized and know what is going on in all areas, and expect the unexpected.
The best way to make a strategic plan work is to start at the beginning and go through the whole plan. Implement each area and control the results. Making changes as necessary will help the plan be successful. Having a great mission is the best place to start. This will allow one to understand exactly what one wants from the business. It also allows everyone to know what to expect from the business. From there one should make their goals so that there is something to work towards. It is important to make sure your goals...
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