Final Strategic Plan: Underwater Turbine Induction System
Many organizations have a plan or a piece of a plan. But only a few organizations have a thoroughly developed strategic plan. Strategic planning is a process that has a beginning and no ending. Beginning with the formation of a mission and core values statement, the process continues with the development of a vision statement, long-term objectives, SWOTT analysis, strategies, and short-term objectives.
Several behavioral effects of strategic management improve the organizations welfare such as strategy formulation that assist the organization’s ability to prevent problems, group-based strategic decisions draw the best alternative choices, the involvement of employees in strategy formulation improves the productivity-reward relationship, which heightens their motivation. In addition, the reduction of breaks and double work in activities among individuals and groups results from strategy formulation which clarifies differences in roles and assists in reduced resistance to change. Pearce and Robinson (2004) comment “A strategy reflects a company’s awareness of how, when, and where it should compete; against whom it should compete; and for what purpose it should compete” (p. 4, para. 4).
Importance of Strategic Planning and Management in the Business Environment
The business I want to start is a green eco-friendly organization that designs and builds water turbine induction systems for power creation and water desalination for the United States coastal regions. However, starting a business is a challenge. Without proper procedures and guidelines, a new business owner cannot identify and maintain a game plan to success. Creating a rough outline or game plan by the issuing of a mission statement is part of the strategic management process. To coincide with a mission statement, a vision statement describes what the organization wants to become. This paper offers ideas on how important these factors are as well as the four concepts of business: planning, leading, controlling, and organization are to the creating and implementation of a strategic business plan.
Define Strategic Management and Planning
According to Pearce and Robinson (2004) “Strategic management is defined as a set of decisions and action s that result in the formulation and implementation of plans that result designed to achieve a company’s objectives” (p. 3, para. 3). By the use of planning, directing, organizing, and controlling, strategic management comprises of nine tasks: 1) Formulate the company’s mission, including broad statements about its purpose, philosophy, and goals, 2) Conduct an analysis that reflects the company’s internal conditions and capabilities, 3) Assess the company’s external environment, including both the competitive and the general contextual factors, 4) Analyze the company’s options by matching its resources with the external environment, 5) Identify the most desirable options by evaluating each option in light of the company’s mission, 6) Select a set of long-term objectives and grand strategies that will achieve the most desirable options, 7) Develop annual objectives and short-term strategies compatible with the selected set of long-term objectives and grand strategies, 8) Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures, technologies, and emphasizing reward systems, 9) Evaluate the success of the strategic process as an input for future decision making (Pearce & Robinson, 2004, p. 3, para. 3).
Hermann (2005) states “Strategic management has developed theories and concepts that mainly examine the environment and look inside the firm, developing ideas and methodical advances that follow and try to predict management practice transformation as seen from an evolutionary perspective on variation, selection, and retention” (p. 111, para. 2). Business strategic management and planning are the processes used to orient an organization over the long-term, which achieves an advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets, and to fulfill stakeholder expectations.
Strategic management is the process to build a game plan using short-term and long-term goals and objectives with an outline from a mission and vision statement. By examining results of the short-term or tactical management, revisions can be made to achieve the long-term strategic plan. As with a physical highway roadmap that has mile markers and exits along with alternative road ways, well planned strategic management offers a path to success with check points and offers the ability to make choices on how to proceed based on the issue at hand.
Importance of a Strategic Plan to the Success of this Business
A business cannot achieve maximum success without a strategic plan. By designing and planning a sound strategic plan allows me the ability to provide a service that satisfies a need while generating a financial gain. According to Segal-Horn (2004) “Strategy has therefore become understood more a process,” than a plan (p. 12, para. 3). Several steps are part of building a strategy: Formulate or develop a strategy, strategy implementation or putting the strategy into action, and strategic control or modifying the strategy or its deployment to ensure desired outcomes are attained. The business developed a mission statement: To develop environmentally friendly sources of power and water for coastal regions along the United States while providing for economic profits to allow further growth and future technological advances. In addition to a mission statement, the business developed a vision statement: To eliminate the United States dependency on all foreign energy sources.
By developing a sound strategic plan, the business of developing and building water turbines can achieve sustainable competitive advantage by creating “a unique and valuable position involving a different set of activities….” (Lowson, 2002, p. 52, para. 3). By first formulating or developing an action plan with a rough outline, the author can begin the process of building ones business. In this particular business of developing and selling water turbines, strategic planning is important in assisting in design cost, quality, flexibility, and responsiveness of the organization (Lowson, 2002, p. 51, para. 2). A business owner can manage the business by using the various techniques of planning, leading, controlling, and organizing to ensure that these factors and others when addressed quickly assist to successfully move the plan toward the vision statement.
Four Functions of Management
The four functions of management as they relate to creating and implementing a strategic plan are important components. Without these components, planning, leading, controlling, and organizing, a strategic plan would not be a total comprehensive plan encompassing all aspects of what an organization faces internally or externally. From the planning stage in which the infrastructure of the business begins with employees, equipment, and capital are attained to how these resources will be used, the strategic plan is the roadmap used for guidance. In addition, during the planning stage, it is necessary to set goals, establish standards, and obtain necessary resources. Planning takes three forms: Short-term planning or strategy in the form of tactical strategy, long-term planning or strategy or strategic planning, and contingency strategy employed when an alternative plan is necessary.
Leading is motivating individuals or employees to reach an objective or goal by setting short and long-term goals and the ability to deliver these goals to the employees. Leading also involves being a role model, setting an example, and resolving conflicts. The ability to lead also assists employees learn the ability of empowerment by taking on additional responsibilities, making correct decisions, and completing tasks assigned to them.
Coordinating procedures and resources internally and externally is part of the controlling function of management. By measuring against set guidelines and goals set earlier, a manager can monitor and control outcomes of employees by correcting issues as they arise. By maintaining control of an organization, a manager can maintain an awareness of how productivity is progressing toward the goal or objective.
By taking the rough outline from the planning stage, the organizing step involves prioritizing the steps into a framework that all employees understand. A specific order of processes creates a game plan employees follow. For example, employees are assigned jobs and tasks to perform in a particular order for their specific job title. Identifying capable employees and placing them in the best position possible provides managers the flexibility to develop teams that can complete several tasks and assignments at the same time. Thus production and productivity increases. Using a prioritized checklist covering personnel resources to other resources, measures the effectiveness of the resources in use.
Importance of Vision, Mission, and Values in Strategic Direction
The importance of an organization to develop a vision, mission, and values is important for strategic direction. Without the individual foundations of strong values illustrated by a vision to be undertaken by a mission, an organization cannot become an overly successful organization. Without developing a mission, vision, and values to assist in developing a strategy, an organization cannot identify, distinguish or explain itself to its employees and customers alike. This paper discusses the importance of developing a vision, mission, and values for the business of water turbine induction systems.