Posted: July 4th, 2022

In chapter 4, the main focus is planning and strategic management.

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In chapter 4, the main focus is planning and strategic management. Every firm has to have a plan to make sure they have something to fall upon to reach the goals of the company. Chapter 4 included the basic planning process and all 6 stages on how it should be done. The first stage of the basic planning process is situational analysis. This is when the firm analyzes the data to gather information from the internal and external environment to figure out where the firm is at in regards to resources, what consumers want, and the competition. The second stage is alternative goals and plans. This is when the people in the firm are deciding on goals and plans to make the organization more successful. It is encouraged for high-level employees such as managers to get ideas from everyone else in the firm. These goals have to be creative or realistic to reach. The third stage of the basic planning process is goal and plan evaluation. This is when the manager of the firm evaluates the goals and ideas that were given and will think about the advantages as well as the disadvantages of each goal. Also the potential effects of these goals for the future of the firm. Some goals will be eliminated and some would be prioritized so it is important for managers to choose which goals would affect the company positively. The fourth stage is the goal and plan selection. This ties in with the third step as it is the manager deciding on the goal the firm will be aiming for. It’s important for the manager to choose the best decision because this will affect the firm and its future. The fifth stage is implementation. The manager and employees must understand the plan that was chosen and make sure they have the available resources to continue on reaching the goal. The people in the firm also have to be motivated to carry out this new plan so the process can run correctly. If some of the people in the firm are not on the same page then it will risk the plans and goals of the firm. The final stage of the basic planning process is monitoring and control. Managers should constantly check if the plan is going well in the process of reaching its goal. They also have to adapt to any situation if plans end up changing.
Another topic in chapter 4 that was discussed is the strategic management process. This is when management deals with an organization’s strategic objectives. There are 5 stages that are included in the strategic management process. The first stage is goal setting. This stage is where the firm looks at its own vision of the future such as short-term and long-term objectives. These objectives are looked over to see if they can be accomplished or not. The second stage is the analysis which is gathering all the data and information that is relevant to the objective. It also covers the needs of the business and the external and internal information which affects the goals of the firm. The third stage is strategy formulation. This is important for the business since it is identifying if there are enough resources to complete the objective of the firm. It also identifies which external resources a firm needs in order to be successful. The fourth stage is strategy implementation. Since the purpose of the strategic management process is to deal with an organization’s objectives, an implementation plan must be put in place before the process is considered achievable. Everyone in the firm must be on the same page and know what their duties are so the organization’s overall goal succeeds. The final stage of the strategic management process is evaluation and control. This includes performance appraisal as well constant review of both internal and external issues. When necessary, the management of the organization can implement corrective actions to ensure the success of the firm.
Question: Which stage of the basic planning process is the most important to you? Why?
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