Importance Of Strategic Planning Essay

1019 words - 4 pages

IntroductionA small business seldom heard of in Fayetteville N.C. is a swapping/consignment store, the general idea behind a swapping/consignment store is to offer consumers a place where merchandise or services can be swapped for merchandise or services of equal value. This report will define strategic management and planning, explain the four functions of management relative to creating and implementing a strategic plan and examine the steps to developing a strategic plan and explain why a strategic plan is important to the development and success of the business.Strategic Management and Planning DefinedThe textbook definition of strategic management is a the set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives (Pearce II & Robinson Jr., 2009). Strategic planning as it refers to Strategic management is a process of determining long -term goals and indentifying the best approach for achieving the goals (Strategic Planning, 2009).Four Functions of ManagementThe four functions of management relative to creating and implementing a strategic plan are planning, directing, organizing, and controlling (Pearce II & Robinson Jr., 2009). Planning is the first function of the management process, without effective planning management cannot effectively organize, control or lead. Planning is used as a tool to help identify potential opportunities and threats as well as effectively establishes goals and objectives for long-term success. Planning also ensures that the business will use all resources toward achieving the goals that will guide the business toward obtainable success.Planning is used as a tool to help identify potential opportunities and threats as well as effectively establishes goals and objectives for long-term success. Planning also ensures that the business will use all resources toward achieving the goals that will guide the business toward obtainable success. Organizing is the second function of management, the purpose of this function is to organize the businesses available resources. By organizing the available resources management can implement the best course of action needed to follow through with the pre-determined planning process that was developed during the planning step. Another reason organizing is an important factor to the functions of management is during the process of getting organized, management will determine the internal organizational structure; establish and maintain relationships as well as allocate necessary resources as needed (Rane, 2007).Leading is the process of motivating and overseeing employee's behavior and performance as it relates toward the intended goals of the business. To make leading successful management has to have close day to day contact with subordinates. This availability helps to guide and inspire employees toward achieving individual, team and organizational goals. Since employees are the face and overall...

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