Strategic Processes Contributing To Organisational Performance Essay Example

and select suitable strategies for achieving strategic competitiveness and earning above-average returns. The chosen strategy of an organization outlines its intended focus area for achieving success. Strategic management is especially important since firms with high competitive advantage tend to perform better, leading to improved organizational performance. However, the impact of strategic management on organizational performance may vary based on the size and type of business, as seen with small businesses and new ventures which differ significantly from large businesses (Cooper, 1981, p.).

The examination of new and small firms reveals that strategic management is evaluated individually in the start-up stage, early-growth stage, and later-growth stage. As a result, conflicting objectives and communication barriers can emerge, impeding organizational development and adversely impacting performance. The evidence indicates that strategic management has a substantial impact on organizational performance, with both positive and negative consequences. Additionally, strategic thinking is a critical process that significantly contributes to a firm's organizational performance.

There is often confusion between strategic thinking and strategic planning as the former lacks a precise definition. However, it can be said that strategic planning is similar to single-loop learning while strategic thinking can be compared to double-loop learning. These are distinct approaches but are connected and supplement each other. Therefore, comprehending both is vital when evaluating how strategic thinking influences organizational performance. Mixing up these two concepts may result in inaccurate conclusions and must be prevented.

Managers and organizations engage in planning to establish direction and mitigate uncertainty. Planning is crucial for setting standards and maintaining control within companies (Robbins, Bergman, Stagg ; Coulter et al, 2006). Jones, Scholes and Whittington (2008, p. 402) define strategic planning as a systematic,

step-by-step approach to developing and coordinating an organization's strategy.

Strategic Thinking involves a process that allows senior management to create a strategy, debate relevant issues, evaluate both internal and external environments, establish strategic goals for the organization, and execute the strategy effectively (Decision Processes International, 2008). Although strategic thinking and strategic planning have distinct differences in description, their ultimate goal is to improve organizational performance. According to Graetz (2002, p. 456), in an environment marked by flux and uncertainty, innovative and divergent strategic thinking is crucial for creating and sustaining competitive advantage. This implies that with today’s hectic organizational climate, strategic thinking is more likely to be used as a distinct method from strategic planning.

In accordance with the Small Business Administration website (2008, para. 2), strategic thinking encompasses the cultivation of skills in teamwork, critical thinking and problem solving to realize a business vision while aiding in adjusting to changes, anticipating transitions and conceiving novel opportunities. This suggests that planning can be regarded as an element of strategic thinking rather than a distinct process. Regardless of whether strategic planning is perceived as an autonomous technique or a unified approach, it culminates in the same outcome.

It is crucial for organizations and individuals to practice strategic thinking as it contributes greatly to their success. By encouraging strategic thinking across all levels, it can enhance decision-making processes and yield better strategies, increasing the likelihood of achieving organizational goals. Bonn (2005, p. 355) suggests that acknowledging and tackling strategic thinking at individual, group, and organizational levels can broaden the scope of strategies considered and ultimately lead to greater competitive advantage and improved performance. In summary, strategic thinking plays a significant

role in organizational performance akin to that of strategic management.

Bonn (2001, p. 3) discovered that organizational failure can be linked to a lack of strategic thinking by senior managers, which is considered a significant shortcoming. This highlights the crucial role that strategic thinking plays in enhancing organizational performance. Strategic thinking promotes the generation of ideas and methods to achieve organizational objectives, offering immense benefits. However, without effective implementation, strategic thinking might not yield any advantages. Many organizations struggle to bridge the gap between conceptualization and execution of ideas.

(Stowell & Mead, 2008) Strategic thinking has a major disadvantage in the form of a gap between its process and execution. Inaction can render strategic thinking pointless, leading to a waste of time and resources that may harm an organization's performance. Both strategic management and strategic thinking are essential elements that can significantly affect an organization's overall performance, either positively or negatively.

Barney, J. suggests that utilizing strategic management and strategic thinking methodologies can produce a competitive edge indicative of successful organizational performance. Despite this, it must be acknowledged that these procedures carry potential drawbacks that may affect overall performance. The implementation of said processes ultimately determines their success or failure, possibly resulting in high or low performance. Thus, emphasizing the crucial role played by strategic management and strategic thinking processes in organizational performance.The article titled "Firm resources and sustained competitive advantage" was published in the Journal of Management in 1991. It can be found in volume 17, issue 1, and spans pages 99-120.The article "Developing strategic thinking as a core competency" by Bonn (2001) was published in Management Decision, volume 39, issue 1, and spans pages 63-71.

Bonn, I.

(2005) wrote about enhancing strategic thinking through a multilevel approach in the Leadership and Organization Development Journal, which was published in volume 26, issue 5/6, pages.

Cooper, A. C. (1981) from page 336 to 355.

The article titled "Strategic Management: New ventures and small businesses" can be found in Long Range Planning, Volume 14, Issue 5, with pages numbering from 39 to 45.The source "Decision Processes International" discusses the creation and communication of corporate strategy in 2008, as accessed on April 21st of that year through the URL http://www.decisionprocesses.com/proc/thinking.sp. Additionally, a 2002 article by Graetz titled "Strategic thinking versus strategic planning: towards understanding the complementaries" in the journal Management Decision is referenced. The text is enclosed in a paragraph tag.

Hanson, D. 40, iss. 5, pp. 456-462.

The authors of this work from 2008 are Dowling, Peter J., Hitt, Michael A., Ireland, R. Duane, and Hoskisson, Robert E.The 3rd edition of "Strategic Management: Competitiveness and Globalisation", published by Thomson Publishing in South Melbourne, Australia, is referenced alongside an article by L. Heracleous titled "Strategic Thinking or Strategic Planning?" found in volume 31 of Long Range Planning.The citation "Jones, G., Scholes, K. & Whittington, R. (2008). 3, pp. 481-487." is enclosed in a paragraph tag.The book "Exploring corporate strategy', 8th edn" is published by Pearson Education Ltd in Essex, England and authored by S. Robbins, R. Bergman, I. Stagg, and M. Coulter.The text within the HTML paragraph tags lists two books with their respective authors, titles, and edition numbers. The first book is "Management" by Pearson Education Australia, published in 2006 and in its fourth edition. The second book is "Organisation Theory: Concepts and cases" by

S. P. Robbins, also published by Pearson Education Australia in Frenchs Forest, NSW and in its fourth edition as well, with a release date of 2002.The website titled "Forecasting for Growth: Strategic Thinking" was accessed on April 21st, 2008 from the Small Business Administration. The author of the website is S.J. Stowell.The article titled "Planning to Win" was authored by Saul Carliner and Sheila S. Mead in 2008 and can be found in T +D journal, volume 62, issue number unspecified. The text is enclosed in a HTML paragraph tag.The text on page 4 is found on pages 86-88.