Strategic Management Plan

Topics: Plan, Management, Strategic management Pages: 2 (547 words) Published: January 26, 2013
CanGo’s strategic management plan is missing. They have basically been using an informal planning process where nothing is written down. A well-documented formal plan allows everyone in a project or business to understand exactly what needs to be done. Too ridged of a plan can hinder a company’s success by reducing their flexibility. CanGo needs to put into action some form of formal strategic management plan for the continued growth of the company. The key to their newest project, online gaming, might benefit using agile development for this project. A well thought out strategic management plan has a formal plan that is a clear path, is well defined as to where the company is and where it wants to. CanGo’s strategic management plan seems to be an informal plan where very little or anything is written down. The plans for the company are in the heads of a few people. “This approach means that members of the organization are more or less following the lead of those management members who does the informal planning, and their tasks, responsibilities and priorities can be changed rapidly to accommodate urgent issues.” (Coetzee, 2011) Management should engage in formal planning for four (4) reasons: 1.Planning provides direction

2.Reduces the impact of change
3.Minimize waste and redundancy
4.Establishes objectives or standards that facilitate control Some critics challenge the basic assumptions of planning. The major arguments are as follows: 1.Planning may create rigidity
2.Plans can’t be developed for a dynamic environment
3.Formal plans can’t replace intuition and creativity
4.Planning focuses manager’s attention on today’s competition, not on tomorrow’s survival 5.Formal planning reinforces success, which may lead to failure (Coetzee, 2011)
A new type of strategic development that is being used in many IT companies, is called agile development. “Agile development is based on iterative development steps, where requirements and solutions are...

Cited: Coetzee, L. (2011, January 26). Does formal planning reduce flexibility and hinder success? Retrieved from Swat Blog:
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