Submitted by: Submitted by trevornb
Views: 435
Words: 2266
Pages: 10
Category: Business and Industry
Date Submitted: 01/09/2012 11:45 PM
According to Kuhn (2002), strategic planning is a systematic approach, which defines the way to guarantee the permanent accomplishment of the company’s overriding goals and objectives. It has a favorable effect on revenue growth, earnings, and return on investment (Thompson et al. 2004). The purpose of this paper is to critically assess the view that the CEO of a medium sized business does not need a written strategic plan as it is all in his head. This essay argues the importance of communicating a strategic plan by delving deeper into the theory that supports organisational strategy. Specifically, the scope of this paper will be confined to how strategic planning can aid an organisation in its search of goal attainment, competitive advantage and success. The importance of communication other than ‘in one’s head’ and discussion of strategy is presented, followed by a discussion of managers employing a transformational leadership style, and the importance of establishing, and communicating, an organisational vision. The analysis of internal and external environments is then discussed followed by the effects of goal commitment and attainment on a firm. Finally, the importance of including managers from different departments in decision-making followed by efficient and effective use of resources is discussed.
It is important that the strategy of an organisation be communicated to any new employee entering management (especially top management). Due to it’s complexity, a well-written, clear strategic plan is easier to communicate than an unwritten plan. Communication experts support this view—stating that for effective communication to happen, different channels (the mediums of sending messages) should be used (Eunson 2008). Strategic planning is firstly a process—the series of steps that need to be followed by those within an organisation who, try to agree on where the organisation is going (vision), and how it is going to get there (i.e., strategy) (Abraham 2006)....