The planning process clearly defines the mission, strategic objectives, and implementation plans.

The planning process clearly defines the mission, strategic objectives, and implementation plans.

Discussion Reply: Strategy Development, Strategy Decisions, and Decision Models Reply to the below Discussion Board Thread with the Following:

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Minimum of 2 sources from the literature in addition to course texts Current APA format must be used.

Content must include:

•       Summary of the author’s Thread – no less than 125 words

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BUSI 770 Discussion Board Forum 1Cheryl Ardis School of Business, Liberty University

 

 

Author Note Cheryl Ardis I have no known conflict of interest to disclose .Correspondence concerning this article should be addressed to Cheryl Ardis Email: cardis@liberty.eduIntroductionStrategic thinking is a required business skill. The process requires rational thought that focuses on finding threats or weaknesses while analyzing many different to determine what decisions to make and what direction to go. Strategic thinking is essential. Regardless of industry, strategic thinking will help create plans, goals, and ideas. Gamble et al. (2020) write that a well-crafted, well-executed, constantly evolving strategy can explain why some companies stay near the top, year after year. This discussion briefly examines the business strategy development process, critical decisions for making strategic choices, and decision models.

 

Business Strategy Development

Gamble et al. (2020) state that a company’s strategy is the coordinated set of actions its managers take to outperform competitors and achieve superior profitability. The well-crafted strategy is not simply for short-term competitive success but rather for the enduring success that supports growth over the long term. Nowak (2021) echoes this definition, stating that the process of strategic planning is a sequence of logical activities that define a unit’s mission, long- and short-term goals, as well as its implementation plans.The strategy development process begins with researching and identifying strategic opportunities, selecting the most appropriate, and finally, allocating the resources necessary to achieve the selected objectives. Nowak (2021) suggests that business organizations utilize planning processes in significantly different ways. Some organizations emphasize the coercive function of the planning process while other organizations create an environment that enables employee participation.Nowak (2021) continues that significant paradigm shifts in how organizations conduct business planning are occurring. There is a benefit that creates a more enabling environment for employees. Business process planning should be viewed as dynamic interactions among employees at various levels within the organization. Such planning processes encourage employee dialog, modification, and agreement resulting in a collectively accepted consensus regarding the unit’s strategic priorities and actions.

The planning process clearly defines the mission, strategic objectives, and implementation plans. By clarifying the long-term goals, the short-term goals needed to achieve the broader mission are aligned, providing clarity and consistency. When the planning process encourages employee participation, employees can better understand, accept, and support the strategic initiatives, bringing better business performance.

 

Strategic Thinking       

According to Rumelt (2011), strategy is about complicated yet significant issues that deserve more than a quick closure around the first idea that comes to mind. Previously unknown value-generating opportunities are often discovered with good strategic thinking. It also challenges assumptions about an organization’s value proposition so that the potential opportunities can be targeted. Strategic thinking brings clarity to what drives the business. A good strategy is a puzzle that brings the challenge of working around cognitive bias limitations. Making a list is a primary tool for overcoming cognitive limitations. The list counters forgetfulness, forcing reflection on the relative urgency and importance of the issues at hand. A list creates action leading to resolving concerns.Rumelt (2011) states that knowledge is necessary but not sufficient for making good strategic decisions in strategy work. The ability to think and make judgments is a skill as important as any strategy concept, tool, matrix, or analytical framework. Lew et al. (2019) write that decision-makers must contend with uncertainty, complexity, and disruptions. Organizational ambidexterity is the ability to apply multiple strategic approaches, either concurrently or consecutively, considering current responsibilities and future opportunities. Agile organizations thrive in continually changing and unpredictable business environments when normal decision-makers ‘ standard patterns are interrupted unexpectedly.  Strategic decision-makers must develop a cluster of thinking skills that become habits when making decisions.Decision ModelKrogerus and Tschäppeler (2017) state that decision models help bring clarity to many daily decisions, such as motivating a team, making changes, or working more efficiently. Models reduce the complexity of a situation by dismissing the extraneous and concentrating on what is essential. Decision models require active thought processes rather than defining what or how to think. One handy tool for decision-making is the SWOT analysis.According to Krogerus and Tschäppeler (2017), the SWOT analysis is a technique is based on a Stanford University study conducted in the 1960s, and the analysis continues to be a popular evaluation tool.

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal company factors. Strengths and weaknesses can be controlled and changed. Opportunities and threats are external factors found in the larger market. A company may be able to leverage strengths to capitalize on an opportunity. Threats cannot be changed, but companies must develop strategies to protect against them. The SWOT analysis is simple, but taking time to plot out each of the four areas carefully is beneficial. The SWOT analysis is one of the more versatile tools available applicable to business or personal decisions with equal success.ConclusionThe business strategy development process is the foundation the company builds on to set it apart from competitors and help them achieve financial success. The coordinated actions of the business strategy development process require strategic thinking, an essential skill that can be learned and cultivated. Decision models are tools that can assist in clarifying solutions and actions to take. Rumelt (2011) and Krogerus and Tschäppeler (2017) both write about numerous decision models beneficial to the process. This discussion touched on just one, the SWOT analysis. Achieving sustainable competitive advantage is the goal of the strategic business process, and each of the topics discussed plays a vital role. None of these are static processes as they evolve and change over time with industry and market changes.

 

References

Gamble, J. E., Thompson, A. A., & Peteraf, M. A. (2020). Essentials of strategic management: The quest for competitive advantage (7th ed.). McGraw Hill.Krogerus, M., & Tschäppeler, R. (2017). The decision book: Fifty models for strategic thinking. W. W. Norton & Company.Lew, C., Meyerowitz, D., & Svensson, G. (2019). Formal and informal scenario-planning in strategic decision-making: an assessment of corporate reasoning. The Journal of Business & Industrial Marketing, 34(2), 439-450. http://dx.doi.org.ezproxy.liberty.edu/10.1108/JBIM-03-2018-0096

 

Nowak, R. (2021). Process of strategic planning and cognitive diversity as determinants of cohesiveness and performance. Business Process Management Journal, 27(1), 55-74. https://doi.org/10.1108/BPMJ-09-2019-0401

 

Rumelt, R. P. (2011). Good strategy, bad strategy: The difference and why it matters. Crown Books.Annotated BibliographyLew, C., Meyerowitz, D., & Svensson, G. (2019). Formal and informal scenario-planning in strategic decision-making: an assessment of corporate reasoning. The Journal of Business & Industrial Marketing, 34(2), 439-450. http://dx.doi.org.ezproxy.liberty.edu/10.1108/JBIM-03-2018-0096

 

Two of the authors, Charlene Lew and Danielle Meyerowitz are full-time faculty members of the Gordon Institute of Business Science, University of Pretoria, Johannesburg, South Africa. Lew’s expertise is in behavioral decision-making, strategic leadership, and strategic thinking. Meyerowitz’s experience is in management consulting in areas such as strategic foresight, decision-making, and leadership, specifically for business leaders to become more adaptive in the current complex environment. The third author, Göran Svensson is a professor at Oslo School of Management, Kristiania University College, and a visiting professor at the University of Johannesburg, South Africa. He is the editor of the European Business Review and Director of the Nordinavia Research Institute. The research paper is peer-reviewed and published in the Journal of Business and Industrial Marketing, part of the Emerald Publishing Group. The journal focuses on new ideas and contributors must not only present new theories or ideas but also back them up with research.

The purpose of the research paper was to explore corporate reasoning of formal and informal usage of scenario-planning in strategic decision-making. The study expands upon previous insights based on an emerging market context. The study contributes to understanding the value of scenario-planning in complex contexts that require strategic adaptability. The findings reported from the study are based on an emerging market context and provide insights into the use of scenario-planning in strategic decision-making and expands the understanding of the strategic value where organizational adaptability is required.

The article was selected for use in this paper as it relates to the difficult task of making strategic decisions in our constantly changing, turbulent world. Part of strategic thinking is the ability to cope with change. Given the need for strategic adaptability, firms need to consider how they reason about strategic decision-making. The article contained information on formal or informal scenario-planning, but that information was not specifically referenced in this paper.Nowak, R. (2021). Process of strategic planning and cognitive diversity as determinants of cohesiveness and performance. Business Process Management Journal, 27(1), 55-74. https://doi.org/10.1108/BPMJ-09-2019-0401

 

The author, Radoslaw Nowak, is an assistant professor at the New York Institute of Technology. He specializes in human resource management and labor relations. The purpose of this paper is to investigate the effects of the strategic planning process on cohesiveness and performance in cognitively diverse organizational units. The study uses structural equation modeling to analyze the dataset collected from employees working in healthcare organizations in the United States. The paper is peer-reviewed and published in the Business Process Management Journal, part of the Emerald Group Publishing. The aims and scope of this journal are to examine how a variety of business processes intrinsic to organizational efficiency and effectiveness are integrated and managed for competitive success.

The study examines the role of cognitive diversity and the role of the strategic planning process. Cognitive diversity is defined as a group level construct that encompasses the breadth of knowledge, ideas, perspectives, and beliefs that coexist within a given unit. Strategic planning is defined as a sequence of logical activities that define a unit’s mission, long- and short-term goals, as well as implementation plans. The study proposes that the strategic planning process could also fulfill an additional organizational function of enhancing organizational cohesiveness, which in turn can improve performance.

This article was selected for use in this paper for the strategic planning process information containing historical definitions of the business planning process as well as current theories on including employees to bring a dynamic environment to the planning process. The article also contains information on the changing nature of the broader, overall market and the paradigm shifts occurring within organizations on the strategic planning process.

The paper’s objective was to fill a gap in the existing literature by answering the research question: Could business organizations utilize their process of strategic planning to enhance internal cohesiveness and improve performance. The main contribution reveals that the strategic planning process can be instrumental in enhancing a unit’s internal cohesiveness. The study also contributes specific recommendations managers may want to incorporate to improve internal effectiveness.

 

 

 

 

Notes;

Books to Read/Consider for this Assignment:

 

Essentials Of Strategic Management 7TH 21

Author: Gamble

ISBN-13:        978-1-260-78579-1

ISBN-10:        1-260-78579-3

Edition/Copyright:      7TH 21

Publisher:      Mcgraw-Hill Course Content Deliver

Read Chapter 1

 

Decision Book REV 17

Author: Krogerus, Mikael

ISBN-13:        978-0-393-65237-6

ISBN-10:        0-393-65237-8

Edition/Copyright:      REV 17

Publisher:      W.W. Norton & Co.

Read Page 5-174

 

Good Strategy/ Bad Strategy: the Differ 2011

Author: Rumelt, Richard

ISBN-13:        978-0-307-88623-1

ISBN-10:        0-307-88623-9

Edition/Copyright:      2011Publisher:      Crown Business

Read Chpt 16-17

 

Every Good Endeavor: Connecting Your Work to God’s Work 2014

Author: Keller, Timothy

ISBN-13:        978-1-59463-282-2

ISBN-10:        1-59463-282-0

Edition/Copyright:      2014

Publisher:      Riverhead Books

Read Chpt 1-3