Introduction

: Strategic

Planning DM 217

1st Semester 2013

Pangasinan State University

Prof. Jo B. Bitonio, DPA

The world is changing. The old rules are beginning to buckle, and new standards are emerging-- some still masked in fog, others with greater clarity.

The thing that distinguishes today's successful enterprise, business and government, is the ability to adapt to changes in environment, in markets, and in customer expectations.

In order to survive into the 21st century, an enterprise must make change management an integral, enterprise-wide process. To think in radical terms, a dramatic overhaul of entire operations at a single stroke.

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An enterprise should organize itself on the basis of process instead of functions, The management gurus generally agree that time can be squeezed out of every job; that self-managed teams throw more challenge and meaning into employment; and that enterprises sorely need to create networks of relationships with customers, suppliers and competitors (Byrne:1997 as cited by Perskin: 1997).

Management guru’s tend to agree that smaller is better, yet they do not applaud wholesale downsizing as a cure-all.

"If all you try to do is flatten your existing organization, you'll kill it,“ "The fat is not waiting around on top to be cut. It's marbled in, and the only way you get it out is by grinding it out and frying it out. "may mean that enterprises need to totally "re-engineer" how work gets done -- new goals, new methods, new processes, new measures, new technologies (Hammer:1992 as cited by Perskin:1997)

The recent eruption of the global economic crisis is both a threat and a challenge for the current model of “democratic” governance irrespective of whether we talk about States or about enterprises.

Given the dynamic nature of the global changes, only applied systems approaches can come to rescue because of their inherent capability to bridge the gaps between theory and practice.

Not only governments, enterprises and other organizations, but the world at large are in desperate need of effective methodologies and multi-methodologies in order to manage today’s organizational complexities and implement efficient strategic management

Historically, the concept of "strategy" has

developed in the military lexicon, where it defines

the planning and implementation of state policies and

political and military alliance of several countries,

using all available means.

Economic strategy is defined as "long-term, the most fundamental and important installations, plans, intentions of the government, regional administrations, leadership organizations in the production, income and expenditure, budget, taxation, investment, prices and social protection."

Strategy - a set of core activities and ways of their implementation.

Recent studies and leading management

theorists have advocated that strategy needs

to start with stakeholders expectations and use

a modified balanced scorecard which includes

all stakeholders.

It can be said that there is no

overriding strategic

managerial method, and that

a number of differing

variables must be taken into

account, relative to how a

corporate strategic plan is

outlined. It can also be said

to be a subjective and highly

contextual process.

In terms of level of management strategies are ranked as follows:

1) Corporate strategy - implemented in diversified companies and includes: creating and managing a highly productive economic portfolio of business units, creating a synergy among related departments, establish investment priorities.

2) Business strategy involves: development of measures aimed at enhancing the competitiveness and the preservation of competitive advantages of firms, the formation of a mechanism to respond to external changes, the union of the strategic actions of major functional divisions of the company.

In terms of level of management strategies are ranked as follows:

3) Functional strategy involves: steps to support the business strategy, actions to achieve the goals department.

4)The operating strategy requires actions to address specific business challenges of subdivision (a functional, territorial).

Management POSDCORB is an acronym created

by Luther Gulick and Lyndall Urwick

in 1937. Developed as a means to

structure and analyze management

activities, it set a new paradigm in

Public Administration

POSDCORB lists the functions of

the executives according to Luther

Gulick who was a well known

member of the classical school of

POSDCORB includes seven

functions

OECD Organization for Economic

Cooperation and Development.

Economic development strategies of enterprises is becoming increasingly important for enterprises, which are set in a highly competitive, both among themselves and with foreign corporations. Although strategic planning is not in itself ensure success, but it creates the conditions for the emergence of a number of important and often essential enabling factors for the organization.

At the present stage of development is the transformation of the whole complex of economic, social, relations of power and it is very important that these changes were the most effective way, taking into account the well-defined, scientifically-based priorities. Current trends that are observed in the external environment and within the country, necessitated, and the desirability of an overall economic development strategy of enterprises, organizations, government bodies and local government units

• These and other questions of equally significant stature are ones that business leaders cannot ignore. Indeed, if these leaders are to survive they need to address them head-on. In doing so, they need to painstakingly examine their current business strategies and hold them up to the new realities and determine what needs to be changed. In short, they need to re-invent their strategies! A failure to do so could prove fatal.

References:

• Deminskaya Julia. Strategy development engineering enterprise http://masters.donntu.edu.ua/2011/iem/deminskaya/diss/indexe.htm accessed 6/24/2012

• Alan Perkins. Enterprise Engineering.Visible Systems Corporation 1997 http://www.ies.aust.com/papers/EEMT.html accessed 6/30/2012

Paul Samuelson and William Nordhaus, Economics, 12th Ed., McGrawHill, New York, 1985cw.mit.edu/courses/chemical-engineering/10-490-integrated-chemical-engineering-i-fall-2006/projects/eng_econ_lecture.pdf.

Samuelson and Nordhaus:1985, Economics, 12th Ed., McGrawHill, New York, 1985

• Nag, R.; Hambrick, D. C.; Chen, M.-J,What is strategic management, really? Inductive derivation of a consensus definition of the field. Strategic Management Journal. Volume 28, Issue 9, pages 935–955, September 2007

• http://en.wikipedia.org/wiki/Strategic_management