Hcm640

Takenya Harris

Unit IV DB

HCM640

1 July 2012

Strategic planning is the process that an organization evaluates the future prospects of the company and decides on appropriate strategies to accomplish long-term objectives. Strategic is the basic way organizations competes it choice of business in which way they decide to operate and the way they may differentiate themselves from the competitors. A strategy formulation consists of five categories, which must be followed in this particular order in order for it to be successful. The order an organization must follow with a strategy formulation is; directional strategies, adaptive, market entry, competitive, and implementation strategies. A Strategy formulation is a skill for leaders and a step that they use to focus on where an organization needs to go, in order to adjust to their customers’ needs and to arrange the organization team (Strategy Formulation, 2012).

This step is the first step to be done in the strategy formulation which is the directional strategy. A directional strategy is very important for many organizations in both private and public sector because they help with providing context for the decision making in the organization. Directional strategy is also there to tell an organization whether the business should grow, maintain the current activities, or be reduced. Directional strategy can be used by any organization in order to determine whether or not to expand, contract or stabilize (Strategic Planning, 2012).

The second step to be done in the adaptive process. Adaptive needs to be done in the strategic planning process because this allows an organization to adapt to any changing or unanticipated situations. Adaptive planning may be done using these factors which are adaptive roll-out, persistence, feedback metrics, and continuous improvement. When adaptive planning is done using those four factors can help the organization adjust to the changes that have occurred (Strategic Planning, 2012)....