- 500+ Experts Online to help you 24x7
- Guaranteed Grade or Get Money Back!
- Rated 4.8/5 Out of 5087 Reviews
Introduction of Research Method
The management of every company needs strategic planning for furthering its growth. For creating any organizational strategies, the company’s management is required to define its goals and target. Most of the firms are concentrating on future planning which is the most useful for increasing their growth rate. In the present report, the researcher has discussed the strategic planning process that organization follows to devise the strategic plan that would result in accomplishing the strategic goals and objectives of the organization and enhancing their performance. It has been stated that if the organization follows the strategic planning within the organization to formulate the strategy then it will positively improve the performance of an organization. Therefore, it can be said that there is a link between strategic planning and the overall growth of the organization.
Effectiveness of strategic planning & performance in enhancing the growth of the company- A study on Hilton. Aim: “To assess the significance of strategic planning & performance in enhancing the growth of the company- A study on Hilton”
- To assess the significance of strategic planning & performance in the modern era.
- To understand the link between strategic planning & performance and organizational growth.
- To recommend the ways through which the organization can develop a better strategic plan for enhancing its performance.
What is the importance of strategic planning & performance in the present era?
What is the link between strategic planning & performance on the growth of organization?
What are the ways through which organization can develop better strategic plan and performance for the enterprise?
Significance of strategic planning
Strategic planning is defined as a significant procedure of an organization as it assists in providing a path to attain measurable objectives of the enterprise. However, it is also known as an essential tool for the organization which is useful in making the day-to-day decisions of the organization. As per the view of Poister (2010) it has been explained that strategic planning is considered as a systematic process that assist in keeping consistency between different resources and organizational objectives so that firm can easily succeed in attaining desired goals (Poister, 2010).
Further Bryson (2011) argues that strategic planning is mainly important for the firm as it help in acquiring higher profit and growth (Bryson, 2011). Moreover, strategic planning in the modern era also plays a significant role in enhancing the company’s performance as the process mainly focuses on determining the current state of the industry that would help the organization in devising effective strategy for the organization so that they can fulfil the demand of target customers.
According to Steiner (2010) strategic planning also help the organization in evaluating the future situation for the company and further it impact the organization in attaining long term objectives and goals (Steiner, 2010). However, strategic planning also provides direction or path to the management of organization and also provides particular direction to all the departmental strategy so that they can easily accomplish the objectives. As per the view of Brinckmann Grichnik and Kapsa (2010) implementing and enforcing effective strategic plan within the enterprise result in enhancing the overall growth, revenue and profitability of the organization (Brinckmann, Grichnik and Kapsa, 2010). Moreover, in the changing scenario strategic planning is effective for the organization as it help in gaining competitive advantage by dealing with the change existing in the competitive marketplace. According to French (2013) the key role of strategic planning is to increase the efficiency and effectiveness level within the enterprise which in turn cut down the risks and changes that are existing in the external environment (French, 2013). For instance, with the growing of UK hospitality industry, different hotels existing in the industry are required to adopt changes as per the demand of customers. Thus, Hilton manager must focus on the strategic planning process to successfully implement the strategy.
As per the view of Owolabi and Makinde (2012) the significance of strategic planning is that it helps the enterprise in enhancing their profitability and sales by framing effective strategy to accomplish the future goals of the organization (Owolabi and Makinde, 2012). Moreover, the strategic planning will also tends to provide clear vision for the organization so that they can persuade their staff to accomplish predetermined objectives of the company. According to Subramoniam Huisingh and Chinnam (2010) strategic planning may be termed as the long term planning that need to be supported and funded adequately so that organization can easily resists the change so that it can directly enhance the overall growth of the organization (Subramoniam, Huisingh and Chinnam, 2010).
As per the view of Estampe Lamouri and Brahim-Djelloul (2013) in the modern era, strategic planning is concerned with defining the mission of the organization and measuring their actual state and plan properly with allocating adequate resources to improve the business outcome (Estampe, Lamouri and Brahim-Djelloul, 2013). For instance, to expand the Hilton hotel’s luxurious activities in the emerging countries manager of Hilton must focus on strategic planning process so that they can frame effective strategy to lead the business and attain success in the market. As per the view of Ugboro Obeng and Spann (2010) organization must emphasize on certain steps of strategy planning so that they can formulate effective strategy and implement within the organization to lead the organization at the desired position (Ugboro, Obeng and Spann, 2010).
According to Sullivan and Richardson (2011) strategic planning process basically include five crucial steps that is defining mission and vision, scanning the environment, forming strategy, implementing strategy and monitoring (Sullivan and Richardson, 2011). The foremost step in the strategic planning process includes depicting the mission and vision of the organization for which they are operating in the market. For instance, vision of Hilton hotel is to supply quality services and hospitality to their guests and customers who prefer to stay in their hotel. Furthermore, the mission of Hilton is to provide leisure and luxurious hospitality services to visitors and also offer value for the money. As per the view of Matthews (2005) another step of strategic planning process is environmental scanning of the organization with the help of SWOT and PESTLE analysis (Matthews, 2005). By analyzing the environment,, organization would determine the factors and elements which directly affects the business in formulating the strategy. According to May (2010) this step is significant in the planning process as it act as the base for forming the strategy (May, 2010).
After analyzing both the environment, McLarney (2001) stated that organizational manager will focus on formulating the strategy that would help the company in attaining future state (McLarney, 2001). For instance, to expand business activities in the emerging country Hilton will formulate the strategy. As per the view of Nelson (2008) after formulating the strategy, manager would focus on implementing the framed strategy so that organization can easily fulfill the goals (Nelson, 2008).
Link between strategic planning and overall growth of organization
According to Muhamad al-madhoun (2006) it has been stated that if the organization follows the strategic planning within the organization to formulate the strategy then it will positively improve the performance of organization (Muhamad al-madhoun, 2006). Therefore, it can be said that there is link between strategic planning and overall growth of the organization. As per the view of Arasa and K'Obonyo (2012) strategic planning mainly consists of different activities like determining the firm’s mission and vision as well as scanning the environment that will assist the organization manager in formulating the strategy which would result in benefiting the organization to enhance their performance and overall growth of the company (Arasa and K'Obonyo, 2012). For instance, strategic planning process will clearly define the mission as well as objective of the organization that will assist the manager of Hilton to formulate effective strategy that would enhance the coordination and even control the different activities of organization which will help in improving the performance. As per the view of Poister (2010), there is the link between strategic planning and overall growth of the organization as planning mainly consists of set of activities that will support the organization in formulating the strategy that results in achieving future goals and objectives (Poister, 2010).
However, strategic planning will also result in proper planning so that organization can easily accomplish short and long term goals. According to Bryson (2011) strategic planning also provide a model for an organization that support in improving coordination and controlling the organizational activity so that enterprise can easily attain growth and development (Bryson, 2011). Moreover, planning within the organization also supports the manager in gaining relevant information regarding the current and future market trend that assist the enterprise in devising the strategy that will benefit the organization to attract their customers by offering them the required services.
On the other side, Steiner (2010) it has also asserted that the planning procedure also supports the manager and leaders of organization in enabling path for directing the organization so that they can easily attain future goals to sustain in the competitive environment (Steiner, 2010). Moreover, planning also focuses on meeting organizational goals in an appropriate time period to strengthen their position and enable growth of the organization. However, Brinckmann, Grichnik and Kapsa (2010) asserted that with the help of strategic planning manager can easily define the activities and even set priorities which matches the resources of organization that ultimately result in enhancing overall growth of the organization (Brinckmann, Grichnik and Kapsa, 2010). For instance, Hilton hotel manager while focusing on the strategic planning process will ensure proper scanning of environment which in turn results in gaining adequate information regarding the competitor’s services and offering to the customers and guests. Therefore, it must be assessed by the Hilton manager and they should frame strategy according to the competitors so they can easily attain competitive edge in the market. French (2013) has also asserted that benefit of strategic planning also result in improving the overall performance of the organization (French, 2013). As, enterprise will focus on devising the strategy which will help in overcoming threats and weakness and will mainly focus on meeting the opportunity to improve the growth of the organization. According to Owolabi and Makinde (2012) despite of the benefit sometime strategic planning also negatively impact the overall performance of the organization if the manager of any executive has not successfully implemented the framed strategy (Owolabi and Makinde, 2012).
Manager must monitor the whole process of implementing the strategy so that they can easily identify the gap in the strategy in the initial stage. Thus, improper implementation of strategy may also affect the overall growth of the organization. However, Subramoniam Huisingh and Chinnam (2010) has also evaluated that with the proper strategic planning process and evaluating the success of implemented strategy it will benefit the organization in determining level of performance (Subramoniam, Huisingh and Chinnam, 2010).
Therefore, Estampe Lamouri and Brahim-Djelloul (2013) has asserted that strategic planning process can have a direct influence or impact on the organization as the process helps the enterprise in detailing the way through which organization can be directed towards attaining future objectives (Estampe, Lamouri and Brahim-Djelloul, 2013). Moreover, with the strategic planning it will increase the profitability and even it will assist in raising the market share of the organization in industry. On the contrary Ugboro Obeng and Spann (2010) favour that with the help of proper strategic planning process in the company it will create longevity of the business by providing them with various opportunities in the market (Ugboro, Obeng and Spann, 2010). However, Sullivan and Richardson (2011) has also concluded that good strategic planning render unique advantages to the organization in the market and it also creates competitor advantages in terms of growth and expansion of new projects in the future activities (Sullivan and Richardson, 2011). The firm has analysed its competitors’ strengths and weaknesses for implementing strategy in the production and operations of the business. Company will be monitoring and evaluating the implementation steps because it has huge impact on brand image of the company.
The gap in Literature review is that while reviewing the topic strategic planning it has been identified that organization mainly focuses on the strategic planning process to achieve the objectives and goals. This statement can be justified from the findings of the study of Brinckmann, Grichnik and Kapsa (2010) in which was concluded that strategic planning is to be linked with organizational resources and growth of business. Study of Estampe Lamouri and Brahim-Djelloul (2013) and Owolabi and Makinde (2012) also has resulted that strategic planning process have a direct impact on the organizational performance. On the basis of these studies we have analysed the gap that there should be focus on formulation of strategic planning and performance. For this strategic planning focuses on formulating the strategy there are certain gap or issues are identified in the strategic planning process that is uncertain future environments, change in the external environment etc. therefore, to overcome the future changes in the business environment they must measures the gap in the review.
From the above report it has been stated that strategic planning is an effective process that supports the management in devising the strategy and then implementing that strategy to accomplish the stated long term objectives of the organisation. The report has critically analyze the effectiveness of strategic planning to an organization in enhancing their performance.
- Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing. 25(1). pp. 24-40.
- Bryson, J. M., 2011. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
- Estampe, D., Lamouri, S. and Brahim-Djelloul, S., 2013. A framework for analyzing supply chain performance evaluation models.International Journal of Production Economics. 142(2). pp. 247-258.
- French, D., 2013. British economic and strategic planning: 1905-1915 (Vol. 59). Routledge.
- Matthews, R. J., 2005. Strategic Planning and Management for Library Managers. Libraries Unlimited.