Strategic management process
Internal and external analysis in strategic management
Organizations being complicated units associated with various process and operations is subject the planning, coordination, organization, and control of the set activities in line with the outlined objectives, mission, and vision. The guaranteeing performance calls for the alignment of the activities to the anticipated goals. In such a case, the focus will be based on the attainment of the performance indicators. The principle is required in an academic and corporate venture to create a culture of sustainable performance. Therefore, strategic management is one of the current concerns of the organization. The need for efficiency across the divide has attracted scholarly review and analysis to establish the best approaches as well as the benefits that can accrue whenever corporate entities embrace strategic management practices. This section presents the current research-based position regarding the impacts of strategic planning on organizational performance.
The management of the internal and external resources in an organization is critical to the success of the organization. Most theorists have focused on the ability of large organizations to leverage their resources to enhance the level of output. However, little research has been conducted in line with firms associated with resource constraints. Organizations that have the capacity to balance the management of internal and external resources have been characterized by competitive advantage and a high level of sustainability. Jifri, Drnevich, and Tribble (2016) carried out a study to ascertain the effect of resource slack on the performance of corporate organization with a bias to resource-constrained entities. The study revealed that resource slack offer support for successful managerial practices, which encourage performance based on the designated indicators and targets.
The strategic management of the resources has also created the need for management tools tailored to the needs of the organization. The use of a balanced scorecard is gaining popularity in an organization seeking to improve their department-based performance. With more focus on the aims and vision of the firm, managers have realized the advantages of operating on the schedule and scope of the elements and subsequent processes outlined in a balance score card. The outcome has attracted other organization in different sectors such as education and health. Smith and Loonam (2016) carried out an interpretive-based study on how an Ireland hospital adopted the use of a balanced scorecard to enhance performance and patient outcome. The research showed that the utilization of a balanced scorecard in strategic planning and management is essential in resource management, change implementation, efficiency, and target attainment, which cumulatively improve performance.
A balanced scorecard for measuring company performance
While reviewing the long-term planning for organizations, Martynov and Shafti (2016) noted that firms committed to sustainable performance have focused on the management of resources and capitalizing on dynamic capabilities enhance the competitive advantage of the organization and sustained performance. According to the scholars, focusing on resource-based value and the key competencies in the business is part of strategic management and planning, which can be used to improve the success of the organization based on the internal and external environment factors. Our organization has been keen on the management of resources and capitalizing on the dynamic capabilities to enhance output.
Moreover, the level of leadership and competencies of the managers in planning and implementing strategic programs in an organization has been linked to effective performance. Most firms have focused on acquisition and retention of leaders to attract successful and strategic planning. Goldman and Scott (2016) evaluated the competency models applied in organizations to measure the level of strategic thinking among administrators and employees. The systematic analysis showed that strategic thinking is essential in setting the baseline for improved performance. Through strategic competencies, firms can achieve development goals, sustain implementations, and align the organization based on the set goals.
Anwar and Hasnu (2016) investigated the relationship between strategy and performance to ascertain the contribution of the former to effectiveness within the corporate sector. The study considered the joint stock firms established in Pakistan where other control factors such as the size of the enterprise as well as the industry of operation were also included. Scoring-based methodology study found out that the current approach to strategic planning and management is the hybrid strategies as opposed to one-dimensional approach. However, performance is not guaranteed for specific strategy used, which is determined by both the size of the organization and the industry of operation. Nevertheless, firms committed to defending and analyzing the plans to encourage reactors performance are subject to success.
Strategic planning process research
Based on experience, companies with sufficient risk management competence are associated with growth and cost effectiveness. Jancenelle et al. (2016) investigated the perception of the investors on the future financial performance based on unanticipated negative changes. The focus of the research was to highlight how strategic planning and managerial competency can be used to bring positive changes in such circumstances. The research showed that the presentation of a risk-based forecast during a pre-earning session with investors is essential in controlling the uncertainty among the stakeholders. Presenting the risk-based strategies to be used in achieving the expected results is in setting the baseline for success and enhancing investorst commitment.
The use of technology in an organization to enhance performance is part of the current trends in corporate sector used to enhance strategic planning and track performance. Our organization is concerned with the use of technology in improving the quality of service and modernization of the processes. However, accessing the relevant and reliable technology can be a challenge to the business; therefore, firms have currently considered Strategic Technology Partnering (STP) as the new approach to the acquisition of technology. Kilubi (2016) carried out a study regarding STP where he investigated how performance can be improved when firms need novel technologies that the business cannot operate or develop. The study showed how clear and unified integration and coordination could enhance the performance of the company when STP is considered as the solution to technology need, which calls for more research in this area.
Through professionalism, experience reveals that performance of an organization is tied to the level of flexibility and independence, which is inspiring success in most firms. Gartner and Schon (2016) evaluated the reasons behind the modularization of businesses with the aim of creating either path dependence or strategic flexibility. The study revealed that modularity as a strategic approach to planning and management could be used as a cognitive methodology to improve dynamism, transformation, and change in an organization to attract excellent performance. Nevertheless, firms should capitalize on the drivers while minimizing the barriers to sustaining the anticipated outcomes and outputs.
Analysis of the banking sector in India
Bapat and Mazumdar (2015) analyzed the business strategies and strategic orientation of the banking sector in India. The study ascertained that internal factors such as organizational design and performance are critical as the factors of strategic planning. However, the strategic archetype is an additional dimension in the Indian banking sector. The study revealed that the implication of strategic planning and management in banking is distributed in four major dimensions in corporate sector: cost management, competitive advantage, innovation, and customer satisfaction. Furthermore, the scholars showed how the market share, new products, and costs are the most critical concerns.
Moreover, the management of the critical business processes in an ambiguous environment is a big challenge. Oberg and Shih (2015) investigated how firms can plan to enhance their relationship with internal and external stakeholders with the aim of improving performance through change management in an ambiguous environment. The findings of the study revealed that partner selection and interaction are altered in a complex environment of operation, which calls for collaborative techniques in planning and management at the focal level. However, transactional exchanges are critical at domestic level when firms are committed to performance.
In conclusion, strategic planning and management are essential in orienting the external and internal environment of an organization. The setting of appropriate, industry-based, and sustainable plans sets the baseline for improvement; however, effective implementation, evaluation, and monitoring of the processes guarantee high performance. Through strategic planning, organizations can leverage best technologies, manage costs, acquire and allocate resources effectively, improve competitive advantage, and control externalities of the ambiguous environment of operation. However, managers and other executives should comprehend the essence of adapting the plans to the size of the firm and the industry of exploitation in line with the aims and goals of the organization.
Anwar, J. &T Hasnu, S. (2016). Business strategy and firm performance: a multi-industry analysis. Journal of Strategy and Management, 9(3): 361 t 382.
Bapat, D. &T Mazumdar, D. (2015). Assessment of business strategy: implication for Indian banks.T Journal of Strategy and Management, 8(4): 306 t 325.
Gartner, C. &T SchUZHn, O. (2016). Modularizing business models: between strategic flexibility and path dependence.T Journal of Strategy and Management, 9(1): 39 t 57.
Goldman, E. &T Scott, A. R. (2016). Competency models for assessing strategic thinking.T Journal of Strategy and Management, 9(3): 258 t 280.
Irene Kilubi, I. (2016). Strategic technology partnering capabilities: A systematic review of the empirical evidence over two decades.T Journal of Strategy and Management, 9(2): 216 t 255.
Jancenelle, V. E, Storrud-Barnes, F. S., Iaquinto, A. L., & Buccieri, D. (2016). Firm-specific risk, managerial certainty, and optimism: Protecting value during post-earnings announcement conference calls.T Journal of Strategy and Management, 9(3): 383 t 402.
Jifri, A. O., Drnevich,T P., & Tribble, L. (2016). The role of absorbed slack and potential slack in improving small business performance during economic uncertainty.T Journal of Strategy and Management, 9(4): 474 t 491.
Oberg, C. &T Shih, T. T. (2015). Strategy in an ambiguous innovation environment: The case of a Taiwanese biopharmaceutical firm.T Journal of Strategy and Management, 8(4): 326 t 341.
Martynov, A. &T Shafti, N. (2016). Long-term performance of firms: a review and research agenda.T Journal of Strategy and Management, 9(4): 429 t 448.
Smith, M. &T John Loonam, J. (2016). Exploring strategic execution: A case study on the use of the balanced scorecard within an Irish hospital.T Journal of Strategy and Management, 9(4): 406 t 428.
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