Strategic Business Planning Management And Decision Making

strategical Business Planning Management And Decision MakingThe term schema has found a limited definition arising, principally, from military origins. This definition has been expanded into the concern context where many authors cast argued outline in terms of quantitative and qualitative processes. However, it continues to defy a singular, definitive definition. In order to understand scheme, we moldiness look beyond its military antecedents and identify strategy as a life process.Different likely definitions of strategy argonStrategy is the direction and scope of an boldness over the long term, which achieves the advantage in the changing purlieu through with(predicate) its configuration of resources and competences with the manoeuver of fulfilling stakeholder expectations.Strategies ar make growed in order to achieve the goals and objectives of the organisation.A concurrence of direction based on a clear understanding of the game being played and an discriminating aw beness of how to manoeuvre into a position of advantage.Strategy is not just a notion of how to deal with an enemy or set of competitors or a market. It draws us into nearly of the most fundamental issues about organizations as instruments for collective perception and action. eye socket and record of strategic line management and be afterScope and nature of strategic crinkle management and preparedness is a widespread topic and it is hard to list down every aspect of it. I am using JSW model to describe some of the cite aspects of strategic pipeline management and planThe organisations long termdirection no specific timescale is envisaged but one should guess in terms in excess of one year and more probably of several years.The scope of an organisations activities This testament include both the boilers suit roles and purposes the organisation accepts for itself and the activities it undertakes in pursuit of them.For commercial organisations and for many not for prof it organisations excessively, strategic planning will be about gaining some kind of advantage in competition.Strategic decisions are affected by the values and expectationsof organisations stakeholders. Stakeholders are people who have a legitimate interest in what the organisation does.Characteristics of strategic business management and planningUsing JSW model as an reference, some of the key characteristics of strategic business management and planning areDecisions about the strategic planning are likely to be complexsince there are likely to be a number of significant factors to take in to consideration and a conformation of possible outcomes to balance against one an new(prenominal).There is likely to be a high degree of uncertaintysurrounding strategic planning, both about the precise nature of certain circumstances and about the likely consequences of any course of action.Strategic planning and management have extensive impact on operational decision making, that is, plann ing and decision at lower trains in the organisation.Strategic planning affects the whole organisation and requires processes that cross operational and functional boundaries within it. An integrated approachis therefore required.Strategic planning and management are likely to lead to changewithin the organisation as resource capacity is adjusted to permit new courses of action. Changes with implications for organisational cultureare particularly complex and severe to manage.Key strategies of British Airways areBe the airline of primary choice for long force premium customersSo people will want to fly with us at any time they can. We will carry on to come up with great stuff such as the new business class seat on long haul and a restyled First cabin.Deliver a incomparable service for customers at every touch visorBy training crew, on the ground and in the sky, in world-class warmth and customer service. Customers can check-in from their mobiles or PDAs.Grow our survival in key ball-shaped cities around the worldTo render the best global connectivity for our customers. In addition toour new long haul service from capital of the United Kingdom metropolis to New York JFK, our net realize depth will strengthen with more flights to Dubai and Johannesburg and a return to Saudi Arabia.Build on our leading stance in LondonThe worlds biggest aviation market. Ensuring Heathrow remains a world classhub is vital to give us a powerful London base to cater the largest world(prenominal) long haul markets. We will obtain new slots, support plans for athird runway and work with BAA to improve baggage and terminal conveniencesat Heathrow.Meet our customers need and improve profit margins through new revenue streamsBy coming up with profitable supplementary services that offer customers great value and re-enforce our brand. Our aspire is to grow our mileage business and further revenues from third-party engineering, in-flight sales and a new online retail website. On ba.c om we have now launched a variety of great value hotel and car hire options incase with our flights.The decisions we are taking now will establish how strongly we materialize from the downturn. The airline manufacture is in a period of unprecedented change and we have developed a clear strategy for our business.In order to become the principal global premium airline, we necessitate to look at the way we work as well as what we are doing as a business.For that rationale, along with our five key strategies, we have launched a three-year change programme Compete 2012 agree to our sponsorship of the London 2012 Olympics. This programme is being progressively rolled out across our business to revive our culture and will reform the way we work.Need of strategy in global environmentTodays environment is very much dynamic. Organisations are in a constant exercise of realigning themselves to the needs of the environment. Defined and thorough strategy plays a vital part here. Especially for a globally operating organisation like BA, it could be a matter of success or tumbleure. Managers must be aware that markets, supplies, investors, locations, partners, and competitors can be everywhere. Successful businesses will take advantage of opportunities wherever they are and will be prepared for downfalls. International strategy is the continuous and comprehensive management technique designed to help companies operate and compete effectively across national restrictions, For example, some companies form partnerships with companies in other countries, others acquire companies in other countries, others still develop products, services, and marketing campaigns designed to appeal to customers in other countries. Some rudimentary aspects of international strategies mirror internal strategies in that companies must determine what products or services to sell, where and how to sell them, where and how they will produce or provide them, and how they will compete with other c ompanies in the industry in accordance with company goals.Generally, a Company develops its international strategy by considering its overall strategy, which includes its operations at home and abroad. We can consider quaternary aspects of strategy (1) scope of operations, (2) resource allocation, (3) competitive advantage, and (4) synergy.Besides the fact that well defined strategic business management and planning processes bring structure, control and consistency to the overall decision making of the organisation but we (the company) should also consider that the formal decision making model discussed above may distract managers forethought from controlling actual process as making strategic plans is not the same thing as managing the process. A split may also develop between the people responsible for planning and those responsible for implementation. Particularly in large organisation like ours (BA) the planning system may be too complex and extensive for even quite senior ma nagers to understand the way it works. Over-formal planning systems and over-rigid control can hamper innovative thinking.As the national and international environment is always in a constant move so one can say that there is no one best planning and management model. Now a days the environmental factors and most importantly the customer are in a greater power than before that influences the overall structure, strategy, planning and management processes of the organisation.Prescriptive and Emergent (Mintzberg) strategiesIn real world, 100% intended or prescriptive strategies does not apprehend realised. Some intended strategies fail as predicted environment keeps changing. Emergent strategies arise in response to unexpected changes in the environment and may be better than intended strategies. Hence, organisations should keep some room for emergent strategies alongside the formal process i.e. Rational model.Following diagram is a snapshot of how a mix of prescriptive and emergent s trategies get realised in the practical worldDifferent levels of strategy and their relationship with each other (Hofer and Schender)Strategic business management and planning can be formulated on three unalike levelsCorporate level.Tactical or business level.Operational level.Corporate level strategy makers analyze the common needs of business units and add impact to the whole system in addition to individual development of participating business units. Issues with reference to the introduction of new products or growth into new markets or segments are all a part of this strategic level.Corporate level strategy forms the stem of the strategic decision point and the management has to be wholly responsive of its implications as well as the sensitivity of all succeeding strategies, no matter at what level. It is of prime signification that corporate level strategy is entirely associated by and large with the vision of the business and the values and prospect of stakeholders.Busines s or tactical level strategies are in essence position strategies whereby businesses safe for themselves uniqueness and spot in the market. The endeavour here is to augment the business value for the corporate and stakeholders by change magnitude the brand understanding and value professed by the customers.The third level of strategy is the operational level which chiefly is concerned with successfully implementing the tactical decisions prepared at Corporate and business unit level through optimal consumption of resources and competencies of the business unit.A ruleical understanding of the three levels of strategy makes their strong co-dependence and non-hierarchical nature obvious. All strategies have to be in absolute harmonization with each other since the accomplishment of one is inseparably associate to the other. So as a substitute of being in a top-down order, the inter-connecting can be visualized as a triangle with the three corners indicating the three levels.Visions, missions and objectivesThe two organisations which are to be contrasted and compared are British Airways (for Profit) and Oxfam (Not for Profit).VisionVision means the category of intentions which are broad, all-intrusive and forward-thinking. The corporate success is reliant on the vision set by the top management. A vision is the image that a business must have of its objectives before it sets out to reach them. It describes ambitions for the future, without specifying the means that will be use to achieve those desired ends.Vision of British Air The Vision focuses on employees and customers .it emphasizes BAs desire to be the worlds global airline.Vision of Oxfam UK Oxfams vision is that diverse communities of people nourishment in poverty will exercise their rights to a decent and secure standard of living in developed society.Mission A mission report is an organizations vision converted into written form. It makes tangible the managements view of the direction and purpose of the organization.Mission of British Airways To be the undisputed leader in world go for the next millennium.Mission of Oxfam The main areas of Oxfam mission focus are poverty alleviation, action against violence, making people exercise their rights, removing gender inequality and preventing and reducing environment damage.Objectives Objectives give the organization a clearly defined target. Planning can then be made thereafter to achieve these targets. This is helpful in actuate the employees. It also allows the business to measure the progress towards to its stated aims.Objectives of British Airways The main objectives of British Air revolve around the following key areasEmployee satisfaction and computer storageCustomer SatisfactionBeing more effective as an international carrier as compared to other airlines.Making efficient use of resources.Using methods that are environmentally friendly.Making the airline more competitive in terms of fares while at the same time focusing on profitability.Objectives of Oxfam The main objectives of Oxfam mouth the followingCreating programs for people to make them exercise their rights.Taking measures to reduce environmental damage.Creating awareness among women and thus working towards gender equality.Taking practical measures against the use of violence.methodological analysis for creating Vision, Mission and ObjectivesThe methodology used would beVision Based on the views of the management to create a certain image of the airline in the long-term and how the founding members/key stakeholders want to see the organization in future.Mission It will be based on the vision and the methodology used will depend on the need for to stand out amongst the airline industry.ObjectiveThe Objectives will be setd comparing the public presentation of other airlines and the key locomote / indicators required to translate the vision in to tangible results.Methodology for creating Vision, Mission and ObjectivesVision This will be d ecided according to the core principles on which a charity like Oxfam is founded. The factors considered would be the environment in which the charity operates and the people affected by its activities.Mission This area is decided according to the aims of the key stakeholders and the different areas on which Oxfam focuses including poverty reduction, disaster relief and development projects around the world.ObjectiveThe objectives will be set for the short or long term and the performance measures for the charity taking into consideration the main areas of operations as well as the likely hurdles in attaining a particular goal.Strategic business management and planning methodStrategic Business Management and Planning Method of the organization One of the main methods used is the SWOT Analysis and the pesterer analysis. It takes into account the likely impact of the steps taken by British Air to meet its objectives taking into account the competitors as well as the global conditions existent in the world of travel and transport. This will focus on the main areas which can have a direct impact on the cut of the airline including the fuel prices , customer satisfaction, competitor fares etc.Strategic Business Management and Planning Method of the organization The methods used for a non-profit like Oxfam would be different as they will focus on key achievement areas in its global relief and humanitarian efforts rather than profitability. A key method might be the Value for Money (VFM) process. The likely areas taken into account during these methods might include the amount of donations received, the number of people served and the effectiveness of the work undertaken by Oxfam.The influence of corporate governance and normalsInfluence of Corporate Governance and RegulationsBritish airways has to take into account different areas of corporate governance including the performance of the board and the regulation concerning the executive pay, the roles and duties o f chairman and the chief executive , regulation concerning the functioning of board committees, shareholder accountability , environmental regulation.Influence of Corporate Governance and RegulationsOxfams corporate governance procedures will take into account the requirement for directors and trustees and adhering to a code of conduct(based on the Nolan Committee Principles of Standards in Public Life),also looking into possible conflicts of interests . The specifications of the memorandum of association and the key charitable aims of the charity.Relevance of visions, missions and objectivesMany organisations never explore their reasons for being in business. They are so involved in day-to-day actions they fail to see the large picture. So what is the significance of having an articulated Vision, Mission and Objectives?It starts with establishing your core values. Core values are things that drive an organisation. They are the driving force of an organisation. They are fixed and d o not change over time.Once the core values are established, the next step is the Vision, a long-term goal. It can be something minute or something that is huge.The Mission flows from an organisations Vision. A Mission is important because it embraces the commitment of an organisation to staff, customers, and the community at large. It may define the company ethos, core beliefs of the owners, service levels, quality, excellence, training and commitment. circumstance objectives is the stage that comes next in the process. It is important because it shows how an organisation delivers on the promises made by its Mission. If there is clarity in both the Vision and Mission, it is easy to decide on the objectives. Objectives can be set for each key area of the business along with a time-line for completion. Objectives may be corporate, product, market, sales, financial, operations, or staff related or any combination of these.As can be seen, this is a trickle down system with higher level aspirations that flow down to every level of the business and become the glue that holds everything together. The benefits of having a vision, mission and objectives are clear and unambiguous. Every step that an organisation takes is in pursuit of its articulated end game.