Strategic Planning in Management Practice - Case Study Example

STRATEGIC MANAGEMENT PROCEDURES Introduction Strategic management is a contemporary approach formulated by the scientific society of modernized world regarding the aspect of management. It is generally an approach in management and planning wherein certain steps and procedures are develop and systematically incorporated in the normal process to achieve the desired goals of the institution. This is actually plan with a general outlook in the present and the future where different aspects and factors are incorporated as a whole to develop a plan towards the objective. Implementation of the said management strategic is viewed to post certain advantages and disadvantages to the institution and management in general. Strategic planning is viewed to possess many advantages in the management aspect of the institution. These advantages manifest as this approach generally maintains the focus of the group towards their objectives and goals. Also, strategic planning also ensures that the different factors involved in the group's action are indeed incorporated and be well regarded in their plan ahead of time. Management who uses this approach becomes fully aware of the things and aspect that must be dealt with thus minimizing the certain issues of uncertainty and disconcertment. In addition to that, the efforts of the groups are well distributed to all the works and issues that must be addressed thus, minimizing waste and worthless efforts. However, strategic planning also do posts several disadvantages to the group and this is mainly related to cultural changes and ambiguity in the plan. Commonly, strategic planning comes in contrast with prevalent cultural trend in a certain locality thus, this approach also require change and adaptation when it comes to its implementation. Another is the ambiguity regarding the planning part where the strategy is mainly formulated with underestimation and overestimation, coordination failure, failure in following the created plan, resistance to the implementation of the plan, and others. If critically analyzed, it is evidently true that the advantages of strategic planning do outweigh is disadvantages regarding the achievement of the goals and objective of the group. The main roots this approach flaws can actual be viewed to be in relation to the culture trend and the planning itself. Strategic planning is indeed relevant because it can actually focus the efforts of the groups to the objective and keep all pertinent issues and aspect at perspective however, the plan itself must be created with the participation of every individual in the group for it for efficiently function. The group itself is composed of different individual and that their presence and support is indeed valuable thus they must all be regarded in the aspect of planning. If this concept if significant implemented in the formulation of the strategic management approach then the said value can actually be advantageous for the group towards the achievement of their primary goals and objectives. Case Based Analysis Today's business world is totally different form what the business industries were about ten years ago. Indeed, with the introduction of Information Technology to the globe, along came the different innovations for the business activities in the present system of global trade. This is the reason why many traditional organizations take the option in changing the way they approach the business world in attaining their goals of gaining profit. Among the corporations usually changing their systems are publishing business corporations. This is mainly due to the fact, that with the business of information distribution, a larger scale of customers is needed to support the said industry. Surely, with the traditional set up of business industries, a corporation's aim of reaching the most number of customers may not be that possible. But because of the emerging of virtual business and e-commerce, reaching a worldwide range of different customers had been possible for publishing companies in the present times. One of the examples of companies taking the said big step of development is the HarperCollins Publishers in UK. To learn how the said publishing company progressed so much with the step they took in business, it is very important to know how the company used t deal with their business before they accepted the challenge of changing their systematic approach on their chosen industry. The Company HarperCollins Publishing Company has started only with the printing of pamphlets, hymn books, and other religious publications when it has been founded by Millworker William Collins in the year 1819-1824. The humble beginnings of the company took a great leap during the 1853. This was the time when most of the old publishing materials of the company had been upgraded to support larger amount of printing jobs which the company is already receiving. Years continue to change the different printing systems that the company uses. And every year, more and more books are published through HarperCollins Publishing Company. Yet, the big change had happened when the year 2001 came around. The technological innovations such as the internet paved way to the company's further expansion. The company launched its first ever e-book from a large publishing in UK. The lists of books which the company displayed through the net were subdivided into two main categories which are the information books and the entertainment books. Indeed, one of the main consequences of the major improvement taken by the company had brought many customers closer to the company as well as bringing its stockholders closer to the world. Surely, the profit rate went up and the sales became considerably larger than the usual publication income they got before the innovative years came to the company's existence. But surely, there are still other certain big changes that have to be considered. Of course, attaining success from change is not an easy thing to pass. The Changes Being a part of a virtual organization is not an easy task for a "used to be" traditional organization. In fact, taking this step requires a lot of risks for a certain company. This is because there are a lot of adjustments that are involved when the cyber business is already taking place. Of course, the branches of HarperCollins around the world is still adopting several traditional principles both in business management and marketing. But because the company organization it has formulated for the e-world is set a part from the traditional ways of dealing with business, there had been a lot of adjustments specifically with the skills of the employees needed in operating the said systems of the company (Price, 22). Through the light of understanding the rational model of decision making in the different business organizations, Harper Collins particularly see the benefit of the change in two different perspectives. One is that of the possible effects of the changes with regards the inner system of the organization and the other is the way by which the changes are to likely affect the environment of the organization. In terms of inner changes, the employees are the ones to likely handle the first blow of the challenges. As for example, a computer skill is indeed one of the requirements in making it to become a part of the group who handles the cyber transactions of HarperCollins. Surely, the search for this kind of employees hasn't been that easy at first (Camarinha-Matos, 122). Finding people who had special knowledge on computer programming, internet surfing and operating needs time for development. Naturally, old employees had been among the people who were directly affected with this change. The consequence of development really is first and foremost experienced by the lower ranked employees who are given the tasks of meeting the challenges of the application of the new systems, which the company tries to adapt (Price, 24). The Stake Holders Aside from the employees who are usually subjected to the shock brought about by the pressure of adjusting to new systems in an organization, the stockholders as well as the customers of any company are also directly affected by the changes. Stockholders The stockholders of the company would naturally expect for bigger rates of profits as a benefit from the changes taken by HarperCollins. Indeed, the expectations of the said stakeholders are usually accompanied by doubts as well as the ability to accept failure or success in the end. This is because entering the e-business world is more of a risk rather than assured success. A large amount of investment shall be placed forward by stockholders not actually knowing what the real outcome of the business would be. Through carrying the thoughts of the idealism of Natural Model organization decision making, this phase of the organizational change in Harper Collins actually notes the possibility that the said adjustments in the system actually affects the people outside the organization , or those that are closely related to the business although they are no direct part of the organizations. The said elements of the outside environment of the organizations include the stake holders. Along with them are the investors and the shareholders of the business. In the end, the stockholders need to be constantly prepared to whatever happens and whatever further adjustments they have to take for the sake of the company's continuous existence in the virtual world (Camarinha-Matos, 125). Customers The environment also includes the business clients. The customers are the bloodline of any company. Indeed, the customers are usually interested on how much they would benefit from patronizing a certain company they love to buy from. This means that the customers of HarperCollins were directly affected with the big step they have taken to reach the people worldwide. Normally, the said change could have been really great for the customers since in this set up of organization, they are the usual ones to benefit since they are already able to purchase their needs at the comfort of their homes or offices (Camarinha-Matos, 126). THE Open Systems Model and Harper Colin's Changes The open systems of decision making in business organizations suggest the capability of the companies to adjust their systems through carrying into consideration the ways by which they are particularly going to affect both the outside and the inside environment of their organization. Both the utilization and the application of the natural and the rational systems within the process of coming up with the understanding of the necessary changes needed to be dealt with for the sake of organizational improvement could be used as a tool of increasing the capabilities of the business to increase sales and reputation in the field of commercial industries. Conclusion Surely organizational changes are among the biggest steps any world business companies opt to take for the sake of company development. But because of the success these changes offers, many companies take the risk in making it through he odds. Indeed, the effective ways in which to use change as an opportunity for any organization to develop relies on the people behind the companies. The success behind adjustments and several doubts would always prove to be fruitful once the necessary correct steps are taken in close attention by its stake holders such as the employees, the stockholders and the customers. As it has always been said: "there is no bigger room in the world, than the room for change". There is always a room for improvement and taking it always pays. The utilization of the three major models of decision making in business organizations shall indeed assist in the fact that the changes needed by a business firm should be measured fairly as to how they are to affect the situation of the environments that are connected with the business. It is undeniable that carrying the possible effects of the changes on the different areas of concern connecting the business organization with that of the social systems present in the environment of the said businesses imply a huge importance on the process of actually noting the possible direction of progress that the company is capable of handling for future improvements on the part of the organization's operations. Constantly carrying this elements into consideration shall help the environment or the society coexist with that of the organization itself. Conclusion Management is one of the primary functions of administrative sections especially that of the business organizations. Why is this so Primarily because of the fact that the major function of this particular sector in business establishment is to manage the way by which the business enterprise deal with the employees which it gets its company strength from. Being able to make amends with the way the management deals with the organization's workforce is one way by which the business entity is ensured with the success that it aims to achieve in the future. (Greenwood, 2005, 12) This is the primary reason why management could not passively deal with the issues that concern the employees especially when dealing with the retail practices of business (Leat, 2001, 21). True, the situation of different organizations around the globe today are indeed changing massively, thus making it harder for their management teams to adjust on the said needs that they are supposed to adjust upon. As for a fact, decision-making is a major factor of management that requires adjustments in terms of actual application. In reference to the case mentioned herein, creating a fine working environment for the employees would certainly help in the establishment of a strong business organization. Through policing and employee relations establishment the said motivational factor that would assist the employees in working their efforts towards the right path of success is indeed needed (Greenwood, 2005, 56). This is where the management procedures practiced by the management teams of different organizations enters the scene. Several retail companies in Australia are paying much to be able to help their workforce have a clear motivation towards their goals as well as with the company's goals (Bruce, 2004, 21). Through this, the success of the retail industry could be a definite expectation for the future of the Australian economy. The negative reactions are not at all new in the business industries. At some point, the said reactions are derived from the fact that the business industries are at some point lacking the capability to assist their employees in reaching their goals making it harder for the workforce to perform well, which might result to lesser successful accounts of profitable outcome for the Australian economy. This is where the importance of human resource management should be strongly applied among business organizations. From this perspective, it could be observed and thus proven that the management sector of any organization is definitely not a passive agent when it comes to empowering the human relations of certain business companies especially in the Australian Retail Industry (George, 2005, 65). It also points out that research on the part of decision-making is indeed an important factor of management systems. Most often than not, it could be noted that the Management team even has the largest responsibility in creating the possibilities for a larger, more successful employee relations within the retail industry systems. References: HarperCollins. (2005). The History of HarperCollins. http://b2b.harpercollins.co.uk/C11/History/about-hc.aspxCatID=59306fe8-90e7-4c1d-82b6-a672734df7c3. (December 8, 2008). Luis M. Camarinha-Matos. (2004). Virtual Organizations: Systems and Practices. Spring Street, New York. Price, A.J. (2005). Human Resource Development: Strategy and tactics. Burlington, Massachusetts. Hill, Charles W. L. & Jones, Gareth R (2006). Strategic Management Theory: An Integrated Approach. Houghton Mifflin Company, 7th Edition. Maurice Yolles. (2005). Organisational intelligence. Bradford: 2005.Vol.17, Iss. 1/2; pg. 99, 16 pgs. Allenna Leonard, PhD, The Complementary Set. A Viable System Model: Consideration of Knowledge Management. 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