Strategic Management planning and execution Essay

Strategic Management planning and execution - Essay Example In other words strategy defines where an organization is, where it heading to and how is it going to reach there. As a formalized business process, strategy planning has been in place for as long as four decades ago. However it is commonly observed that most organizations have no idea of where to head to and even if they know that, they don't know how to conduct the planning process effectively. This has led to the failure of most strategic plans which are no less than sitting un-used puppet. Actual implementation is barely observed. Luckily, since the past decades, steps have been taken to make strategy planning and execution more effectively. As the organizations are subjected and exposed to the pains of recession in this crippling world economy, tradition business models need to be turned inside out. It is very important to turn the traditional business models upside down and shape new ways of for strategy implementation and formulation. There are two ways in which strategy can be defined in every company. These are both independent and simultaneous processes through which strategy is defined. In the first strategy making process, the formulation is conscious and analytical in nature. It involves the assessment of market nature, competitive edge, the weakness, customer needs and the main agents of market grown. In this kind of process, strategy is formulated with a concrete beginning and end. Such processes are mostly managed by the top management. The end result of this process is an intended strategy. Intended strategy is also called deliberate strategy. Intended strategy is made a process which is called strategy formulation. In intended strategies, a pattern of decisions are formulate before an action can be undertaken. It is prior to action. It is known to be implemented provided that three conditions are met. One, all those associated with the organization should be able to comprehend each and every clause in the management's intended strategy. Two, if a collective action needs to be undertaken to implement there should be common understanding throughout the organization keeping in line the views of the top management. Thirdly, the actions must take place, irrespective of the political, technological or market conditions outside. Because it is very rare to find circumstances where all three conditions can be met, intended strategy is rarely implemented. Emergent strategy formation . A strategy gives a company the opportunity through which it can align itself and be able to exploit its potential to the maxim. While doing so, the environment and other factors are continuously accounted for and changes apportioned to the strategy accordingly. In other words strategy defines where an organization is, where it heading to and how is it going to reach there. The second strategy making process is called the emergent strategy making process. Emergent strategy is on the actions itself. It is a result of every day priority decisions made by different stake holders in the organization. They could be middle managers, engineers, sales people, financial staff etc. The decisions are independent of the intentions. The decisions are made despite the absence of "intentions". Most managers do not consider this decision a strategic decision but call it tactical in nature and character. For instance, Intel's decision to try out Unicom order. This was a second tier