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Assignment explains that Planning and Strategic Planning plays a vital role in the success of any organization

Home, - The Role and Importance of Planning and Strategic Planning To Contemporary Business

Overview

The Planning and Strategic Planning plays a vital role in the success of any organization, the strategic planning has a direct relationship with the performance management and it is all about the determining the goals and creating a roadmap to achieve those goals and objectives, that roadmap is quite helpful in identifying the barriers that can stop any organization from achieving their goals, but that’s the ultimate goal of strategic planning to address these barriers and help the organization in achieving their goals smoothly(Samuel Taiwo and OlufunkeIdunnu, 2007).

The strategic planning of Starbucks is perfectly fine, they are well aware of the micro and macro-environment in the industry, as we know that industry is highly competitive today. Starbucks is well aware of the important factors like potential new entrants into the industry, bargaining power of the suppliers is significant they can force them to increase the prices or in case to meet the demands of suppliers they have to lower their quality but to mitigate with such factors Starbucks has not created so much dependency on any particular suppliers(Paul Carlson, 1990).

Strengths/weakness of planning and strategic planning

Strengths

The Strength of the strategic planning is that it helps organizations knowing about an exact situation where they are standing? Strategic planning is a complete roadmap towards the success of any organization. For Starbucks, the benefit of strategic planning is that they have kept an eye on the surrounding micro and macro to the environment to face any kind of hardships while moving towards the success(UKEssays, 2018).

Weakness

Keeping in mind the benefits of strategic planning, in today’s competitive world every small and big organization are doing the planning to overcome the challenges, this is making it tough for the companies to compete. The weakness of this can be that nowadays every small and big company is doing the strategic planning that is making the environment tougher for the existing organization. Starbucks facing the problem of a lot of the potential new entrants and substitute products that are the big threat to them(UKEssays, 2018).

Impact of planning and strategic planning

The planning and strategic planning have a direct impact upon the performance of the organizations because this planning makes them able to know about internal and external factors that have an impact on the company performance and create the balance between them. The Starbucks has identified through SWOT analysis that the employees are the big asset for them, their commitment and dedication play important role in building the brand image, increase in sales, quality products, and improved services. Keeping that point in mind Starbucks give training to the employee and arrange development programs for them to keep them motivated and contribute towards the better performance of the organization(Paul Carlson, 1990).

Analysis of the importance of planning and strategic planning in a contemporary business

Strategic management is considered is all about making the organization more proactive as compared to reactive, this means making them ready to be ready to face the obstacles while going through the journey. Traditionally only big organization were used to do strategic planning but the remarkable benefits of strategic management have forced almost everyone to do the strategic planning. Now once the strategic planning is done it’s the time to make it practical that can be done through proper procedures, planned budget and development programs the approaches that are considered as compulsory for the implementation of strategic planning. The strategic planning made organizations aware of the potential entrants, Starbucks by doing strategic planning is well aware of the new potential entrants and substitutes threats. The coffee industry is getting very big in terms of size, The Starbucks needs to be careful of the organizations like Dunkin Donuts and Mc Donald’s that have a widespread distribution channel all around the world and get benefit from economies by purchasing bulk coffee beans from the farmers on low prices that might increase the competition for Starbucks(Paul Carlson, 1990).

Summary

From the above discussion it’s very clear now that if the organizations in today’s highly competitive environment want to sustain in the market and compete other organizations, the strategic planning is very necessary because this creates opportunity for the organizations to know about their surrounding environment(Samuel Taiwo and OlufunkeIdunnu, 2007).

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