Question

- Compare and contrast strategic planning with strategic management.

- Which stage in the strategic-management process is most difficult? Explain why.

- Describe why a mission statement is so important in the strategic-management process.

Answer 1

1. the comparison between strategic planning with strategic management is shown below :

. Meaning : strategic planning is a future oriented activity which tends to determine the organizational strategy while strategic management implies a bundle of decision taken in relation to the formulation and execution of strategies to achieve organizational goals.

. Stresses On : strategic planning stresses on making optimal strategic decisions while strategic management stresses on producing strategic results, new markets, new products, new technologies etc.

. Management : Strategic planning is a management by plans while strategic management is a management by results.

. Process : strategic planning is a analytical process while management is a action oriented process.

. Function : in strategic planning identifying action is to be action while in management Identifying actions to be taken, the individuals who will perform the actions, the right time to perform the action, the way to perform the action.

2. Strategic Planning is a vital process which is compromised of many stages which includes vision,information,formulation,implementation and evaluation. among these five stages implementation is considered as the most difficult stage because of following factors-

. lack of resource - Deciding to implement a strategy is one thing, but the actual implementation requires resources such as staff and capital. Often, firms will create a strategy but fail to account for the resources that are needed to actually implement this. This creates immense difficulties and, often, makes the implementation phase of strategic management the most difficult.

. Poorly defined process : A poorly defined implementation process causes confusion and uncertainty and makes it difficult, and often impossible, to successfully implement the strategy.

. Lack of support : support of employees and managers is needed in order to successfully implement a strategy. When there is a lack of support, people do not proactively make the changes that are needed to adapt to the strategy. This creates large difficulties for strategy implementation.

3. mission is considered to be foundation of any organization, without mission there is no organizational goal. it gives the reason of the existence of organization. it is important because it has several advantages like -

Provides direction: Mission statements are a way to direct a business into the right path. They play a part in helping the business make better decisions which can be beneficial to them. Without the mission statement providing direction, businesses may struggle when it comes to making decisions and planning for the future. This is why providing direction could be considered one of the most advantageous points of a mission statement.

Clear purpose: Having a clear purpose can remove any potential ambiguities that may surround the existence of a business. People who are interested in the progression of the business, such as stakeholders, will want to know that the business is making the right choices and progressing more towards achieving their goals, which will help to remove any doubt the stakeholders may have in the business.

A mission statement can act as a motivational tool within an organization, and it can allow employees to all work towards one common goal that benefits both the organization and themselves. This can help with factors such as employee satisfaction and productivity. It is important that employees feel a sense of purpose. Giving them this sense of purpose will allow them to focus more on their daily tasks and help them realize the goals of the organization and their role.