...The Importance of Strategic Planning in Banking Performance: An Analyzing Examination Jia Li Abstract This paper explains the definition of Strategic Planning and how it is important in banking performance. As the comparison between Strategic Planning and Operational Planning, we get a general idea that Strategic Planning need to be considered and configured first when it comes to business planning. This paper also conducted a SWOT analysis to identify internal and external factors to eliminate risk of failure for a company. Introduction With the continuous development of the world economy and the trend in economic globalization, strategic planning has been attached into great importance and applied into various fields. Studies explain how strategic planning is related to financial performance, and Hopkins used LISREL analysis explained how people have never realized the gap between SP and Banking Performance (Hopkins pp.635-652). In this paper we will be analyzing the importance of having strategic planning in banking performance by SWOT analysis. Study Foundations First of all, what is Strategic Planning (SP)? SP is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources pursue this strategy. There are four key components in SP, which are Vision – what do we want to do, Mission – what might we do, Value – for whom do we do it, and Strategy – what should we do (Wiki). Vision outlines what the...
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............................................24 Task 4.............................................................................................................................................31 References......................................................................................................................................44 TASK 1: P 1.1: Explain the link between strategic management and leadership. Strategic management helps coordinate organizational activities, but taken to excess can create “groupthink,” where the choreography is overdone. According to Certo and Peter (1991, 5), “strategic management is defined as a continuous, iterative process aimed at keeping an organization as a whole appropriately matched to its environment.” Stembridge (2001, 24- 25) states: “the continuous process of strategic management then, includes strategic planning, i.e., analysis, as well as strategy formulation, implementation, and control activities.” Planning is a part or component of strategic management, but not a management substitute (Dunn, 1998). Leadership is about strategic management, discretionary decision-making and policy development. Ohmae (1982) represents leadership as a cornerstone in a triangle along with management and planning. Leaders are charged with the task of moving an institution...
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...Corporate and division strategic planning All corporate headquarters undertake four planning activities: a. Defining the corporate mission. b. Establishing strategic business units (SBUs). c. Assign resources to each SBU. d. Assessing growth opportunities. 1. Defining the Corporate Mission Key questions to ask: What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? Mission statements are best when guided by a “vision” that provides direction for the company. [pic] Good mission statements have three major characteristics: a. Focused on a limited number of goals. b. Stresses the company’s major policies and values. c. Defines the major competitive spheres within which the company will operate by defining the: o Industry. The range of industries in which a company will operate. Some companies will operate in only one industry; some only in a set of related industries; some only in industrial goods, consumer goods, or services; and some in any industry. o Products and applications. Range of products and applications a company supply. o Competence. The range of technological and other core competencies that a company will master and leverage. o Market-segment. The type of market or customers a company will serve. o Vertical. The number of channel levels from raw material to final product and distribution in which a company will participate...
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...Strategic planning process Part A 1) Explain the Strategic Planning Process For a firm to survive and prosper in this highly competitive business environment, a firm must engage in strategic planning process that could define its objectives and assess both the internal and external situation; allowing the company to formulate strategy, implement strategy, evaluate progress and able to make adjustment as necessary to stay on track. There are many approaches to strategic planning but typically a three-step process may be used: * Situation - evaluate the current situation and how it came about. * Target - define goals and/or objectives (sometimes called ideal state) * Path / Proposal - map a possible route to the goals/objectives The Strategic Planning Process Mission & Objectives Mission & Objectives Environmental Scanning Environmental Scanning Strategy Formulation Strategy Formulation Strategy Implementation Strategy Implementation Evaluation & Control Evaluation & Control Mission and objectives It describes the company’s business vision. It includes a firm values, purpose and goals that help to pursue future opportunities. Having a business vision helps firm’s leaders to define measurable financial and strategic objectives. Financial objectives involve measures such as sales target. Environmental Scan It involves the following components: * Internal analysis of the firm * Analysis of the firm’s industry (task environment) ...
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...UNIVERSITY OF BOTSWANA DEPARTMENT OF POLITICAL & ADMINISTRATIVE STUDIES MPA 713 – STRATEGIC PLANNING & MANAGEMENT IN THE PUBLIC SECTOR TERM PAPER Discuss the relationship between strategic planning and strategic management as well as indicate the importance of the latter in the attainment of organizational goals. KEALEBOGA R. MOOKETSI 200301911 Introduction This paper intends to discuss the relationship between strategic planning and strategic management as well to indicate the importance of the latter in the attainment of organizational goals. . In order to lay a proper foundation for the essay, it is important to start by looking at the concept of strategy and linking it to planning and management. Defining Strategy A strategy is a plan of action designed to achieve a specific goal. Strategy is all about gaining (or being prepared to gain) an advantage over adversaries or best exploiting emerging possibilities. According to Jeffrey Pfeffer (1997:4), a strategy is a method or plan chosen to bring about a desired future, such as achievement of a goal or solution to a problem. It can also be defined as the art and science of planning and marshaling resources for their most efficient and effective use. Kvint, Vladimir (2009, pg. 67), defines strategy as “a pattern in a stream of decisions" to contrast with a view of strategy as planning’’ while Max McKeown (2011, pg. 342) argues that "strategy is about shaping the future" and is the human attempt to get to "desirable...
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...Advanced Management and Marketing Summary of the management part Book: Exploring corporate strategy Authors: Johnson, Scholes and Whittington Table of contents Chapter 1 Introducing strategy 2 Chapter 2 The environment 3 Chapter 3 Strategic capability 4 Chapter 4 Strategic purpose 7 Chapter 5 Culture and strategy 9 Chapter 6 Business-level strategy 12 Chapter 7 Strategic directions and corporate-level strategy 14 Chapter 8 International strategy 18 Chapter 10 Strategy methods and evaluation 21 Chapter 11 Strategy development processes 23 Chapter 1 Introducing strategy Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. Strategic decisions are about… * The long-term direction of an organization * The scope of an organization’s activities * Gaining advantage over competitors * Addressing changes in the business environment * Building on resources and competences capabilities * Values and expectations of stakeholders which affect operational decisions Therefore strategic decisions are likely to be complex in nature, are made in uncertain situations, affect operational decisions, require an integrated approach and do involve considerable change. Levels of strategy 1. Corporate level strategy is concerned with the overall purpose...
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...Running head: CAREER DEVELOPMENT PLAN PART I - JOB ANALYSIS AND Career Development Plan Part I - Job Analysis and Selection As a result of the current merger, the organization has taken a new direction. With this change, the opportunity to grow and develop a new team had become available. The creation of this team will require a structured development plan and defined processes to follow. Developing a job analysis will require a combination of a summary of task requirements and resource or people, requirements. Defining and documenting the workforce planning system will provide an efficient method to meet the demand on providing qualified resources to fulfill business needs. Part of the process that will be taken into consideration will be the Selection method and what are the advantages and disadvantages to the methods that will be used. These development plans will provide the foundation necessary to identify several key employees to fit the needs of the new team. As part of the creation process of the new team a job analysis will provide the required information to progress in defining what it is we need. The job analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job (hr-guide.com, n.d.). The job analysis will be specific to the new marketing and sales person that will be required in the new team. One of the elements that the job analysis will look into...
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...future in jeopardy for the present. It also shows many of the present important issues that need attending to now are implications of insufficient planning in former times (Stryker, 2012). A vision can be communicated and achieved by execution of goals, objectives, and strategies (CSU-Global, 2016a). These three components are part of the planning process. Types of Planning During the planning stages of a company, goals can be set utilizing strategic and objective planning. They can be defined as desired concerns an organization wants to become consciously aware of; desired outcomes an organization wishes to accomplish and focuses upon. Without goals, a company will find difficulty in organizing activities and predicting what is in store for future events. Goals help employees maintain focus; they provide long-term vision and short-term inspiration (Schniele, 2007). Strategic Planning Strategic planning is one way to help an organization reach their goals. It guides the organization and helps them realize what is most important to the company; therefore, prioritizes the order of tasks that need to be accomplished. For all departments involved to be successful in achieving goals, it is important everyone has the same understandings; this type of planning assist in defining that strategic direction. Having a strategy helps keep focus, which is necessary in the decision making process. Strategic planning helps to ensure information is communicated effectively (White...
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...Strategic Planning: What does it Mean?, and How is it done Effectively? Most business owners or managers recognize that a strategic plan is a directional map for where their companies are headed and how they intend to get there. However, it is much harder for them to understand what goes into the strategic planning process, how the strategy-making task is best performed, and the full impact of the process the planning team goes through to develop the strategic direction of their organization. Strategic planning is best done when a company looks at its past, present, and future in light of its related environment. It is the process of thinking about the company and its related environment as an integrated whole. A process during which an executive "planning team" is organized to consider three key questions on a continuous basis: 1. What is our business? 2. Where do we wish to arrive, and when? and 3. How do we get from here to there? In a personal interview, Karen Poppe, Vice-President of Human Resource Management at Wall Drug, discussed the importance of organizing a strategic planning team to guide the long-term direction of a company. The planning team at Wall Drug consists of six key management people covering finance, personnel, and marketing. Clearly the success of those planning efforts is reflected in Wall Drug's average annual growth rate of 25% over the last five years. What is our...
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...define the business and where the company would like to go in the future. As the owner/operator of CanGo, Elizabeth never developed a formal business plan for the business from the beginning and therefore had no documented blueprint for the business to speak of. Perfect starting issue! Recommendation: A business plan is a written document that demonstrates persuasively that enough products or services can be sold at a profit for your firm to become a viable business. The three primary reasons for writing business plans are (1) to aid you in determining the feasibility of your business idea, (2) to attract capital for starting up, and (3) to provide direction for your business after it is in operation. CanGo needs a written that will help find omissions and flaws in their ideas by allowing other people to critically review and analyze the plan. A business plan tells you what your business objectives are; when, where, why, and how your business will accomplish its objectives; and who will be involved in running the business. This planning process will help define CanGo’s short term goals and help determine the actions that need to be taken to accomplish them and then gather and commit the necessary resources (Hatten, 2008). The mission statement needs to be in place so that CanGo is able to describe the overall purpose of the business. A vision statement would be helpful to CanGo so that they are able to give a clear description of the company to staff, consumers and shareholders...
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...Health Care Human Resources Management It used to be that human resource was only thought of as the department who hires employees and safe keeps the clerical part of the organization. Human Resource is much more involved in the entire structure of the organization then just the clerical part of it. Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. The HRM department is responsible for three major areas including staffing, employee compensation and benefits and defining and designing work. HRM works for the benefit of the organization through managing its greatest business asset which is the employees. The task of managing employees of an organization brings many challenges, how HRM must remain focused on recruiting, retaining and engaging their organizations leaders and workforce to be successful. Several new trends are affecting how HRM make their hiring decisions. Two recent trends important to HRM leaders are leadership compensation/competencies and workforce engagement. In the setting of limited resources and new government mandates, healthcare is moving toward value-based care. HRM is now challenged to adjust executive compensation to keep in step with the industry change. In a population health model, physicians receive a value-based reimbursement to care rather than a fee for services. The physicians’ performance needs to be continually monitored in order to accurately...
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...Learning Resource Centre. Each guide sets out to give you a quick summary of the main theories on a particular topic backed up by a practical commentary based on Ashridge's long experience of consulting on and teaching management issues. We hope that it whets your appetite for more information. The guide points you in the direction of other sources such as key books, articles and videos. Overview Introduction Stage one: Defining strategic marketing objectives Stage two: Determining strategic focus Stage three: Defining customer targets Stage four: Competitor analysis Stage five: Differential advantage Stage six: Marketing mix Stage seven: Implementation Stage eight: Monitoring market performance Introduction The terms marketing strategy and strategic market planning are often used interchangeably, which sometimes leads to confusion. We will use the term marketing strategy to mean the overall strategy of an organisation in relation to a particular market. In this learning guide we will explore the process of analysis and decision making which organisations go through as they define and implement their approach to that market. Marketing plans will form part of this process, in particular when it comes to implementation. Key aspects of the process are that it is cyclical, ie subject to constant review and reiteration; that it is dynamic, subject to changes in the environment (including customers and competition); and that it should be shared within the organisation, rather than...
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...experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to “grow to 17,000 financial advisers by 2012 [from about 10,000 today] by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of onefinancial-adviser offices.” Conversely, companies that don’t have a simple and clear statement of strategy are likely to fall into the sorry category of those that have failed to execute their strategy or, worse, those that never even had one. In an astonishing number of organizations, executives, frontline employees, and all those in between are frustrated because no clear strategy exists for the company or its lines of business. The kinds of complaints that abound in such firms include: • “I try for months...
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...outsourcing comes from strategic managements. Companies use strategic management to define set of decisions and action that result in the formulation and implementation of plans designed to achieve company’s objectives. One of the decisions can be outsourcing. The company has to go through different tasks to determine factors that will lead to a decision to proceed with outsourcing. It starts by formulating company’s vision, mission and value statement. Conduct environmental analysis that reflects the company’s internal and external conditions and capabilities. Analyze the Company’s options by matching resources with the external environment. Identify the most desirable options by evaluating each option in light of the company’s mission. Select a set of long-term objectives and grand strategies that will achieve the most desirable options. Develop annual objectives and short-term strategies that are compatible with the selected set of long-term objectives and grand strategies. Implement the strategic choices by means of budgeted resource allocations in which the matching of tasks, people, structures and technologies. If company finds out after analyzing its environment, it is looking at cutting operating costs of support functions, it needs to focus on its core business, its needs to reduce capital expenditure in infrastructure and technology or its looking in business transformation through innovation than outsourcing is the right direction. The move to outsourcing...
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...active and engaged board is an essential part of shaping and executing a successful strategy. Followings are the primary responsibilities of corporate board of directors: 1. Approve and monitor the enterprise’s strategy, created and formulated by CEO and Executive Leadership Team 2. Approve major financial decisions 3. Select the chief executive officer, evaluate the CEO and senior executive team, ensure executive succession plans 4. Provide counsel and support to the CEO 5. Ensure compliance However, board of directors often fall short in carrying out their five responsibilities due to limited time they have available, and the inadequate information provided to them. The board members, burdened by limited time and limited information, can participate in a more effective and efficient governance process by implementing Balanced Scorecard program. The program starts with an Enterprise Scorecard enabling the board to become more informed about the enterprise’s strategy so that it can perform better its responsibilities. The board can also create a Board Scorecard, which defines its primary outcomes, board processes, and skills, information, and meeting dynamics for more effective governance. Finally, executive scorecards enable the Board to evaluate the performance of each senior executive and his or her succession plans. Enterprise Balanced Scorecard Enterprise Scorecard describes the strategy of the organization, including strategic objectives, performance measures, targets...
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