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Strategic Planning and Implementation

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The mission of s strategic planning is to drives organisations and businesses forward. A good strategic plan reflects the values of the organisation, and assist organisation to explains how to win in the market. Strategic plan assists businesses to define clear organisation objectives, including action to be followed with the intention to achieve the bigger goal. In essence strategic planning clearly defines the criteria’s to be followed to achieve success and guides the decision-making processes (Olsen, 2012:6). Strategic planning and implementation require effective management participation. Strategic planning failed in most organisation due to lack of management support and participation, especially during the execution or implementation stage (Olsen, 2012:6). Good strategic plan increases good opportunity business opportunity (Reeves, Hanaes & Sinha, 2012:36). The study adopted the definition of Smallbiz (2018:10) who mention that strategic planning is the process of documenting and establishing a direction of the business by assessing who should be involved, how to organise and what to be changed within the organisation change.

Benefits of Effective Strategic Planning

Increase Operational Efficacy

Companies and organisations need to be efficient and effective. The mission of operational efficacy is to identity problems and create solution. In a business context operational efficacy is defined as the ratio between an output gained from the business (Barry, 2019:20). When the operational efficacy of the business improves also the input of the organisation improves (Biron & Bamberger, 2010:01). Productivity and operational efficacy can be used interchangeably (Klassen, Tze, Betts & Gordon, 2011:11). The greater the operational efficacy the more profitable an organisation can invest (Barry, 2019:20). Increased operational efficacy is mainly achieved by streamlining and evaluating the core organisational processes with the intention to efficiently respond to the ever-changing market forces in a cost-effective manner (Slack & Hall, 2012:20). In order for organisation to achieve this operational efficacy, organisations are encouraged to implement strategic planning. Strategic planning will assist organisation to identity unwanted process and minimise wastages and redundancy while leveraging the resources that most contribute to the success of the organisation (Klassen, Tze, Betts & Gordon, 2011:11). During strategic planning, organisations are obliged to identify best workforce, resources such as technology and relevant business process. The reduced of internal cost as a result of good strategic planning will enable the company to achieve higher profit margins or to be even more successful in the more competitive world (Biron & Bamberger, 2010:01).

Increase Market Share and Profitability

Market share and profitability are critical in business strategic management worldwide. There is a growing demand in organisations to make right decisions on how to increase market share and to make profit. Increasing market share and profit is the objective for every organisation (Alabi, 2016:04). However, organisations need to spend money in order to increase their market shares and profit. Increased market share point organisation at the vantage stage and increase its competitive stage (Sipemann; 2013:61). The some of the advantage of the improved market share of the organisation is that it improves posture the company to a better price from suppliers and increase the organisation buying power (Etale, Bingilar & Ifuruze, 2016:103). Organisation improves their profit and market shares through various ways, such as strategic planning, innovation, resources, strengthens customers relationships and acquiring competitors. A higher or increased market share puts the organisation at the competitive advantage (Weetman, 2010:14). Companies need to consider various factors. Market share and profitability as be expressed as market power advantage. This happen when organisations are able to raise its price or offer inferior products because its rivals are not able to offer customers a reasonable alternative. Market share will enable organisation to make higher profit.

Establish Direction

Organisation need to clearly define their organisational goals which will define the direction of the organisation. Having a clear organisational direction is crucial for building organisation momentum. Lack of clear organisation direction or guidance can create confusion within the organisation (Romano, 2017:66). Clear organisational direction could be established through strategic planning and implementation. Organisational direction is equated to the something as organisational objectives. Organisational direction is a key activity within any strategic planning processes. The board of directors together with management and supervisor are the once responsible for guarding, defining and setting the direction of the organisation (Zabihi & Hashemzehi, 2012:01). They are responsible for clearly-setting values which will also decision process of the organisation (Romano; 2017:64). Furthermore, management has a key role in drafting the organisation mission statement that will define its fundamental purpose.

Establishing a clear organisational direction drive the organisations to achieve greater organisational goals (Biron & Bamberger, 2010:03). Clear organisational goals lead to greater success which also on the other hand improve the performance of the organisation. In general, the criteria to establish organisational direction is taken from the organisations strategic planning. The basic objective is that all the criteria must be aligned within the organisational strategy. This will ensure that executives developing the strategic plan understand the organisations capabilities and how it contributes to accomplishing the organisations strategy (Romano, 2017:66).

Increase Job Satisfaction

Job satisfaction is important part in any organisation. It plays a critical role in the individuals well-being. The individual’s level of satisfaction varies from one person to the next. Happy employees are productive once. When employees are not satisfied about their jobs, then the productive of the business will suffer (De Pablos 2017:155). When employees are not happy about their job (De Pablos 2017:149). Job satisfaction is crucial for the success of the organisation. The relationship between job satisfaction, the organisational culture and the organisations leadership is important for organisational success and performance (De Pablos 2017:155) as well as improving workforce morale. A motivated workforce will lead organisation to reach its long-term goals and objectives. (De Pablos 2017:155). Organisational culture and job satisfaction go hand in hand. It has been stated that there is a positive relationship between job satisfaction, job performance and the organisational culture (De Pablos, 2017:155).

Strategic Planning Challenges Faced by Organisations

Strategy planning and implementation are very important components in the organisation. Strategy has been practiced for a long time. Strategic planning organises resources, plan time frames to carry the planning, while taking into account the probable capabilities and behaviour of competition. Maotwanyan (2017:62) strategy planning and implementation is a process which require experiences and expertise. Below are the challenges that might be faced during strategy planning and implementation.

Right People Not Included

Most companies and organisations are in the process of restructuring and reshaping their businesses. However, it is critical for organisations to ensure that resources are given to right people, with required skills and capabilities. Right people need to be included in the strategic planning process as well as in the implementation stage (Senthilkumar, Durai, Sharmila & Poornima, 2014:348). Management, board directors as well low-level employees are required to be involved during strategic planning and implementation (Maotwanyane, 2017:63). Having the right people during strategic planning is very important for achieving desired results (Senthilkumar, Durai, Sharmila & Poornima, 2014:348). Responsibilities and resources should be assigned to the right people with right skills and expertise. Strategic planning demands all employees to be committed accountable, this will lead to great achievement.

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A Lack of Communication

Good communication is about understanding instructions, acquiring knowledge and adopting right resources (Mazanec, Daly, Ferrell & Maryjo, 2011:617). Effective communication is a good tool in achieving higher productivity and maintaining lasting and strong leadership. It is the essential skills of today, hence poor communication can destroy organisation as well as its processes (Banaeianjahromi & Smolander, 2019:20). Poor communication lead to poor strategic planning and also bring frustrations in the workplace. Lack of or poor communication lead to poor teamwork, low morale and poor service delivery. Lack of communication can cause employee to question their job and their responsibilities. It is essential for organisation to communicate all the processes of strategic planning (Drucker, 2017:20). Ineffective communication creates misunderstandings, loss of opportunities and raise business conflicts. Good strategic planning needs to be clearly communicated and cascaded to the right people. the level (Drucker, 2017:20). Though strategic plan can be good, however it needs to be generated in to good intentions and to the right people. This will lead the organisation to produce greater results. Commitment, good communication process and right skills makes a good strategic planning.

Core Competencies

Every organisational require skilled employees to carry out its organisational objectives. Core Competencies are the actual skills of the employees working for the organisation (Batko & Szopa 2016:114). Core competencies, skills form the greatest part of strategic planning. Skilled also referred to as the core competencies are seen as a competitive advantage in an organisation (Banaeianjahromi & Smolander, 2019:20). Skills and competencies show the individuals innovation and proactiveness. (Batko &Szopa 2016;114). Employees capabilities are a crucial asset of the organization. One of the tools that can be used by organisations to determine who is the correct person to employ.

Ignoring Marketplace Reality

Market place and customers need to be considered during the strategic planning and implementation (Batko & Szopa 2016:114). Strategic planning is viewed as a step to improve the processes implementation with the aim of meeting customers’ needs and satisfaction (Hollingworth, 2008:30). Strategic assumptions represent the shared values, beliefs and vision of the management team (Piercy, 2012:350). The truth of the matter is that making sound choices, leading to sustainable strategies has become more important than ever (Piercy, 2012:350). It is critical for organisations to keep in mind their target market during the strategic planning. Ignoring the reality of the marketplace, is very dangerous because it can lead to organisational failure. Companies has to realize that the consumers are increasing in sophistication and keep making new demands. Consumers are turning to value-driven strategy and turning away from brand and relationship marketing. Shifting the outlook of the future and how clients look at organisations (Piercy, 2012:351).

Lack of Accountability

Strategic planning and implementation require commitment and accountability from both employees and management. Stanleigh (2011I:45) emphasised that lack of management and employee’s commitment lead to strategic planning and implementation failure. It is critical that all employees be committed to the processes during strategic planning (Drucker 2017:20). Strategic planning an implementation has many benefits over all types of industries, formal or informal, private or state owned. Strategic planning requires good planning to avoid wastage of time, money and lack of progress (Wilhite, Brierton, Schilling & Tomal, 2017:94). For a strategic planning and implementation to succeed those involved has to be held accountable.

Appropriate Strategic Implementation Strategies

Strategy planning and implementation are very important components in the organisation (Alkhafaji, 2013:01). Strategic planning and implementation require commitment and accountability from both employees and management. Stanleigh (2011I:45) emphasised lack of management and employee’s commitment and support will lead to strategic planning and implementation failure. It is critical that all employees be committed to the processes during strategic planning (Alkahafaji, 2013:1). Formulation of strategy is the process of developing long-term plans to deal effectively with environmental opportunities and threats. Strategy formulation should be done by keeping in mind the mission and vision statement of the organisation. Various challenges could be encountered during strategic planning process.

Poor Planning

Planning is a critical step in strategic planning. Poor planning lead to misunderstanding and poor organisational performance. Hence it should be properly planned (Hainess, 2016:76). During the planning stage, it is imperative that all employees are involved. During the planning stage, employees and employers are oblige to access the organisation needs, objectives and intentions (Hainess 2016:99). Furthermore, identify the skills and teams to drive the strategic implementation.

Organisational Processes

Organisations need to ask themselves the question of what is the requirement for success? This will help the organisation to determine the necessary procedure, process to follow. Father again, considering the budget, skills and competencies of employees (Bryson, Sharon Anderson & Alston, 2011:19). Organisational processes and layout should be clearly (Konovalov, 2016:112). When designing organisations processes various factors need to be considered such as the unit size, action plan, performance control and liaison devices

People with Right Skills

Right people with right skills are crucial for the success of the organisation. It is crucial for organisation to identify the right people with right capabilities to carry the implementation and the execution of strategies that has been developed by the management and employees (Bryson & Alston, 2010:110). In addition, it is recommended that organisation appoint a leader or small team to produce the actual plan and get the necessary reviews. Give an outline and information on process to inform stakeholders of the plan, the review process and its adoption. Ensure the resources needed for implantation are identified and whether or not they are assured (Bryson & Alston; 2010:110).


Strategic planning outline how the company transforms and also define new processes that will be implemented in order to meet customer’s needs. Ordinarily, management and executives use this stage, to determine the objective, target to formulate time frames which the project is supported to run and lastly indicating the methods of monitoring the processes.

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Strategic Planning and Implementation. (2022, August 25). Edubirdie. Retrieved September 22, 2023, from
“Strategic Planning and Implementation.” Edubirdie, 25 Aug. 2022,
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