Create a 7 pages page paper that discusses the role of strategic planning. It not only helps them to survive but also equips them with the necessary competencies to compete with their rivals with confidence and effectively meet the challenges of the constantly evolving business environment. Indeed, the fast-changing external environment, especially the factors like the global financial crisis have significantly impacted the performance outcome of the business entities. Thus, the role of planning has become vital to the strategic management of the organization.
The current market trends and changing equations of global business necessitate organizations to adopt proactive measures for competitive advantage. Strategic planning facilitates organizations in adapting measures to meet the needs of the markets. The organizations must demonstrate a proactive initiative planning to succeed in the cut-throat business environment. Bateman and Snell (2009:132) have described planning as ‘the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit or organization will pursue in future’. It provides managerial leadership with a well defined but flexible course of future actions to meet the desired goals. The flexibility provides the organization with alternative action plans to meet the contingencies that may have occurred due to the adverse impact of external macro factors.
The strategic planning is primarily focused on decision making processes regarding the organization’s long term goals and objectives for its success and growth. These are greatly influenced by the external environment and are oriented towards strategies that can effectively face up to the various macro and micro environmental factors. Mintzberg (1994), the eminent scholar says that planning is a well-defined methodology that is intended to produce the desired outcome through a cohesive system of decision making processes to achieve the predetermined goals. But at the same time, it is important that strategic planning involves more proactive and innovative measures to meet the exigencies of competitive business.
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