Dwight D. Eisenhower

Corporate strategic planning is how an organization defines its future direction over a year, three to five years or even longer, and it outlines how the organization will make decisions regarding the allocation of capital and labor resources to follow this strategy. A strategic plan is usually a document that describes the steps necessary for an organization to grow and become more relevant or profitable, and it involves techniques such as SWOT or PEST (Political, Economic, Socio-cultural and Technological) analysis that affect growth and profitability.

The strategic planning process is often a matter of bridging the gap between the current economic situation and the ideal situation. Its benefits include ensuring that all members of the organization are working towards fulfilling common objectives and that a company’s resources are allocated as efficiently as possible. An excellent corporate strategy should outline where an organization is heading and give employees a sense of belonging and purpose. Moreover, a corporate strategic plan for a company operating in a slow growth economy, such as Europe, is very different from one for a company operating in an explosive growth economy such as China.

A criticism of corporate strategic planning is that it is not adaptable enough for situations where the economy is in a state of flux and is unpredictable or when there are abrupt and unexpected changes in the business environment. Critics comment that a corporate strategic plan always forecasts favorable conditions and only works well if the domestic or world economy is stable over the period of the plan.

FOLLOW-ON QUESTIONS…

1. What is corporate strategic planning and when should it be done?

2. What are its advantages and disadvantages?

3. What 4W + H questions is strategic planning process based on?

4. What techniques does strategic planning involve?

5. Which are the essential characteristics of a successful strategist in business (e.g. decisiveness, integrity, experience, etc)

Case Study «Multicultural project»

ISSUE

You are working on an international project with partners from two other countries. The project has been delayed by a variety of problems. Relationships within the project group have deteriorated and it is becoming more and more difficult to work together. A meeting has been called for the project leaders from each country (two in each case) to get together and try to sort out the frustrations.

AGENDA

1. Timing

2. Meetings

3. Reports

4. Hierarchy

5. Action plan

Дата добавления: 2015-11-14