- Explain the Difference Between Strategic and Operational Planning
In strategic management, planning is carried out by the top-level management who decide where the organization wants to be in future, and the activities that must be done to ensure that the set objectives are accomplished. In other terms, strategic planning is a process related to the analysis and examination of the micro and macro environment that affects a business with an aim of defining goals, visions, as well as setting priorities of an organization. On the contrary, operational planning refers to the procedure that predetermines the daily activities of an organization. Mainly, this planning is done to support the strategic planning in an organization (McGravey and Hannon 11-24). Primarily, the procedure involves determining the short run objectives and discovering the means to achieve the set objectives.
- Outline How Goals, Plans, and Targets Differ According to Organizational and Management Level.
According to organizational and management levels, goals, plans, and targets usually have differences due to the goal orientations, priorities, and regulation at the management level. In this perspective, goals are the objective that an organization aims to achieve after setting some targets. Plans, on the other hand, refer to a set of procedures that an organization will follow to achieve its desires. Finally, target refers to the predetermined objective that an organization aims at achieving.
- List the Various Types of Plans Used in Your Organization, Unit or Department. Outline the Purpose of Each of These Plan Types.
Planning is a major component of the management processes in an organization. Ideally, it is concerned with process, rules, and guidelines creation for achieving various objectives. There are different types of plans in an organization as follows:
- a) Tactical plan. In brief, this describes the methods that the organization plans to employ in order to achieve the objectives stated in the strategic plan.
- b) Strategic plan. This is the foundational basis of the organization and it dictates the long-term decisions for an organization.
- c) Operational plan. Generally, this describes the daily running of an institution.
- Describe the Six Key Stages of the Overall Planning Process. Note That You are Required to Detail Each of the Stages – a Listing is not Sufficient.
- a) Creating a roadmap: This aims at identifying the current position of the organization in comparison to its desired future position.
- b) Identifying risks: In this case, the organization identifies risks just before they occur. Importantly, this enables the organization to come up with steps to alleviate and mitigate these losses.
- c) Planning of the budget: Every organization should formulate a budget that indicates the activities to be undertaken within a given period, and the estimated cost for each activity.
- d) Cataloging and rating of threats: This enables the organization to demystify the risks within it, and in effect makes them solvable and approachable.
- e) Strengthening what works: Ideally, this enables the organization to think strategically rather than tactically.
- f) Thinking outside the box: In general, the organization should bring other experts from outside who can be able to scrutinize risks and help in finding the right path to solve various organizational issues (Patterson et al.).
- 5. Outline How the Six Key Planning Stages are Used (or Not) in Your Organization, Unit or Department.
- ) Creating a road map: Basically, this stage enables the organization to remain focused on its main agenda.
- ) Identifying risks: This method enables our organization to form prudent decisions and avoid situations that are known to lead to losses through previous experiences or from reports from various researchers.
- ) Planning of the budget: This process enables our department to avoid wasteful and unbudgeted expenses.
- ) Cataloging and rating of threats: Generally, the rating of threats enables us to identify the magnitude of risks when the management is faced with risky decisions.
- ) Strengthening what works: This tactic is important is useful since it enables the department to remain focus and not to make losses when trying to invent new methods.
- ) Thinking outside the box: Ideally, this method spurs creativity and innovation in the department, which in turn leads to more output by the organization.
- What Potential Benefits and Problems Exist With Planning and Goal Setting:
In brief, the benefits of goal setting include helping the organization focus on the achievement of its goals. Effectively, this makes the organization to have a high rating on customer satisfaction. On the contrary, at times goal setting is mired with the desire to achieve unrealistic targets by the management. Primarily, this occurs where a goal is set at a level where the current organization’s capital and human resource cannot achieve the desired targets.
- How are / Could These Problems be Overcome in Your Organization.
The organization can overcome the highlighted problems by setting realistic and attainable goals. In addition, the organization should learn from its past failures. In practice, any failure that the organization makes should be analyzed in so that it can avoid a similar mistake in future (Patterson et al.). Importantly, the management should also consult its employees during the decision-making process.
- What Steps do You / Could You Take to Avoid These Problems?
To begin with, I will set goals that the organization is can achieve by consulting all the organization’s stakeholders. By so doing, the organization’s targets will be realistic since experts in various fields will give their opinions on how to achieve the desired goals, and if they are attainable. In addition to this, I will analyze the organization’s past failures and learn from its mistakes. In turn, this will enable the business to identify the future risks.
iii. Describe How you go About Helping Team Members See the Link Between Their Tasks and the Organizational Goals.
It is vital for the team members to see the linkages that exist between the tasks they perform and the goals of the organization. Notably, this can be done by increasing their engagement with SMART goals. Moreover, communicating expectations of the organization concisely after every phase of goal completion to the members may enable them to align their tasks with the organization’s goals. In effect, this will enable them to realize how their tasks affect the organization’s goals.
Part 2- Contingency Planning
- Briefly Detail Your Understanding of Contingency Planning.
A contingency plan is a set of procedures that are developed for an outcome and not for the normally expected plan. In most cases, a contingency planning is used for risk management so that the business can avoid catastrophic effects of various tragedies that a business may face. Consequently, a good contingency plan should provide a business with a sustainable alternative cause of action when a tragedy occurs.
- Outline the Importance of Contingency Planning.
One of the main importance of a contingency plan is that it helps an organization to anticipate business risks. In practice, the more risks an organization can anticipate, the easier it is for it to cope up with various challenges. Similarly, a contingency plan helps when an organization is developing mitigation strategies (Dumas, La Rosa, Mendling, and Reijers). Contingency planning leads to the development of strategies that limit the effects of future catastrophes on the organization such as a shortage of capital or an increase in the cost of strategic raw materials.
Additionally, contingency planning leads to the making of advancement that facilitates for a reduction in the rate of which employees have work related injuries. On the same breath, contingency planning helps in seizing the business opportunity. Noteworthy, the inclusion of a contingency plan will allow an organization to compete with other businesses in a variety of areas such as the development of new products that aims in meeting the changes in the customers demand pattern.
Part 3- SWOT Analysis
1.) Outline the Purpose and Benefits of a SWOT Analysis.
A SWOT analysis enables an organization to identify its strength, weaknesses, opportunities, as well as the threats it faces. It is beneficial since it helps a business to address weaknesses, deter threats, and capitalize on opportunities, as well as having a better understanding of the business.
- Complete a SWOT Analysis for Your Organization, Unit or Department
Table 1: SWOT Analysis for a Manufacturing Business
- Review the Results and Provide a Summary Listing the Specific Conclusions You Draw About the Current Position of Your Organization, Unit, or Department.
Generally, the organization present strategy is working effectively which is evidenced by the manner in which it is achieving its financial and strategic objectives. Moreover, the organization is an above average industrial performer. Consequently, it is able to enter new markets and compete effectively with the existing competitors. Further, the organization has a competitive strength due to its bundled capabilities that are yielding a sustainable competitive advantage. Basically, this is because the customers’ value proposition is competitive and cost effective.
Part 4: Operational Planning
- Using the Summary of Your Conclusion From Part 3 (4) Above, Select one Specific Point to be Worked Into Your Operational Plan. Outline the Point and why you Selected it.
The specific point to be worked into the operational plan is on competitive strength through competitive analysis. In this case, a statement of the organization strategy in relation to competition in the industry is developed during the making of the operational plan. Essentially, this contributes to the achievement of the strategic goals of the organization.
Noteworthy, the point on competitive analysis was selected since it will help in determining the strengths and weaknesses of the competitors within the market. Moreover, it will provide strategies that the organization may implement and in effect make it more competitive. Further, competitive analysis facilitates the development of market-entry-barriers that are essential in keeping away competitors (Patterson et al.).
Dumas, M., La Rosa, M., Mendling, J., and Reijers, H. Fundamentals of Business Process Management. New York, NY: Springer, 2013. Print.
McGravey, B., and Hannon, B. Dynamic Modeling for Business Management: An Introduction. New York, NY: Springer, 2004. Print.
Patterson, K., Grenny, J., McMillian, R., Switzler, A. and Maxfiled, D. Crucial Accountability: Tools for Resolving Violated Expectations, Broken Commitments, and Bad Behavior (2.Ed.). New York, NY: McGraw-Hill Education, 2013. Print.