Strategic Planning

Strategic Planning
Student`s Name
Institution of Affiliation

Strategic Planning
Introduction
Planning is the most significant aspect of an organization. It doesn’t matter whether a business is big or small; a good plan means that company will achieve it set goals successfully. A program enables firms to plan for coming opportunities and challenges. Consequently, this allows the organizations meet the need of their target customers effectively. The planning process should be creative and simple to be understood by all stakeholders. Strategic planning entails deciding the goals of an organization and the necessary strategies for attaining these goals. Additionally, it also involves mobilizing resources to execute the required plans. Strategic planning became popular among companies during the 1960s. Strategic planning is considered both a reaction tool and a tool for adapting to future changes an organization. It provides a platform for corporations to adjust their activities and services to go along with the needs of the industry. It also enables corporations to make improvements to program as well as restructuring them to fit with the changing environment. We are going to have an in-depth analysis of the various strategic planning theories and techniques in a business environment and how corporations use them to promote and sustain their operations.
The resource based-theory is the most common strategic planning management theory employed by an organization. It states that a corporation is made up of resources and capabilities.

These consist of physical, financial, and human assets (Barney, 2014). The foundation of this theory is that resources are scarce and limited in mobility, and hence companies can transform these resources into a strategic advantage. The strategic plan should be in a way to exploit these resources to the fullest as they are valuable, rare, difficult to imitate and non-substitutable.
The knowledge-based theory is another model used in strategic management. It is an expansion of the resource-based view, and it states that a firm is a bundle of knowledge. Knowledge is considered an exceptional resource that drives the operations of a company. It is difficult to imitate and understand knowledge thus creating a competitive advantage for the corporation. Another theory is the agency theory which emphases on the relationship between the shareholders and those employed in the organization. The firm is thought to consist of contracts with all sides of the agreement having self-interest. The contracts between the involved parties enhance efficiency through sharing of risks and information. The board of directors acts as monitors in place of shareholders.
Lastly, we have the institutional theory that focuses on the impact the surrounding environment has on the firm. It explains how the environment impacts the actions of an organization. The approach examines how these institutions are created, how they affect industries and change over time.
Developing vision and mission statements are some of the techniques used in strategic planning. A vision is an inspirational statement detailing where the business should be in the future. It outlines the overall direction of the organization (Bryson, 2018). On the other hand, a mission statement describes how and what should be done on a daily basis to achieve the goals of the corporation. Scenario planning is another technique used to plan for all possible preparation. It entails the formation of contingency plans to meet the needs of each possible outcome. This sort of planning makes long-term plans flexible.
Companies evaluate themselves both internally and externally using SWOT band PESTE analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weakness are internal factors within an organization, while opportunities and threats are external factors. By evaluating the inherent advantages and disadvantages, an organization can change accordingly. It asks what the strengths are? What unique capabilities and resources do it possess, and what others perceive as the businesses` strength. It also entails for weaknesses to be addressed and some of these weaknesses’ can be turned into strengths. By setting a mission and vision, the set goals are attained by an organization.
System thinking is an approach that focuses on the way a system`s components interrelate and how it works within a broader context. It entails critical thinking which helps understand a situation for better decision making. Making effective decision is becoming more difficult with the ever-growing global economy and systems’ thinking provides a platform for decision making (Haines, 2016). Technological innovation has made the today`s business world more complex hence the need for system thinkers. When analyzing the interactions of parts in a system, we can see the more significant patterns. In organizations, if the design is useful and beneficial, the decision would be to reinforce it. However, if the model is undesirable, the best choice is to change the pattern.
Conclusion
In conclusion, we will look at an example of an organization with a robust strategic plan, and in this case, Washington State University provides the best illustration. The university has come up with a strategic plan running from 2014 to 2019. It focuses on students` experience in campus and university research. It is a continuation of the previous strategy, and it addresses both long and short-term goals. The plan was outlined in the mission of the institution, and it consisted of advancing knowledge through creative research and innovations. It also involved applying experience through local and global engagement. The strategic plan has proven to be successful as the institution has enrolled more students in research and it has been ranked among the best universities in the world.
References
Barney, J. B. (2014). Gaining and sustaining competitive advantage. Pearson higher ed.
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley & Sons.Haines, S. (2016). The systems thinking approach to strategic planning and management. CRC Press.