Prerequisite reading

Strategic Planning in Diversified Companies:

Strategic Planning is an organizational process by using all the available information about
the desired business. This is a business method which requires proper efforts, efficient
allocation of the possible resources’ direct participation of the shareholders, stakeholders and
employees in the process of achieving the organizational goals. In this process, the senior
management team and the financial team need to ensure that all the decisions are made after
checking all the possible evidence. Within smaller organizations, strategic planning is not so
formal and continuous process. The CEO and the management team come together and try to
solve the organizational issues without following a formalised business process. Contrarily
within a big and diversified company has different processes for handling organizational
strategies and business planning. In this type of company, the service centre managers have
the whole responsibility to handle the decentralized decisions of the organizational structures.
The main reason behind its formal management is, a huge number of managers are involved
in decisions requiring coordinated action, so in that case, informal planning is impossible
within the workplace.

The organizations have three levels while having their strategic and business planning and
they are discussed as follows:

Corporate Planning and Strategy: The corporate objectives are established at the topmost
level. Corporate planning includes the decision-making process related to the organizational
goals according to the determination of how the business is engaged, collecting all the
resources which need to accomplish and allocation of those resources so that the desired
targets achieve easily.

Business Planning and Strategy: Business planning leads the organization towards the
formulation of the strategies which are adopted by the business while defining the possibility
of the activities which can satisfy the consumer needs as well as implementing all the policies
which are adapted for the growth and development of the organization. Contrarily the
strategy construction also includes the business objectives and goals and establishing the
character of the business, after delineating the scope of its operations through the markets,
geographical areas and technical factors.
Functional planning and strategy: Within this type of development program all the
departments improve their feasible action plans for implementing the division strategy. In this
case, strategy formulation includes the selective objectives and the business goals for every
functional area such as marketing, production, finance, research and so on (hbr.org, 2023).

Benefits of strategic and business planning

Strategic and business planning have various organizational benefits which are discussed as
follows:

The business and strategic plans help the business to anticipate the plans for the future while
predicting the unfavourable circumstances within the workplace. This business approach also
helps the senior managers and the finance team to take appropriate steps while preventing
organizational conflicts by applying strategies and business approaches. By adopting
different proactive methods within the workplace, companies can stay updated with the
evolving business market trends as well as the news and the situations of their competitors. A
strategic plan supports the business to define its direction while setting its objectives into
realistic ones. These working practices help to make the organizational goals linked with the
vision of the company and purpose while providing the organization with a required outline
for growth as well as evaluation towards the business targets, deserving compensations of the
workers as well as the implementation of the limits for the effective decision-making
practice. Contrarily the business plan works as a guide of the company which co-ordinate
with the leaders within the workplace to lead the organizational operations and accomplish
the objectives. With the help of the guidance the organization at the time of making
meaningful insights about the business and labour market trends, categories of the customers,
and services which may affect the business. A dedicated and well-planned strategy increases
the effectiveness of the revenues and marketing policies which can help the cost-effectiveness
as well as the productivity of the entire organization (indeed.com, 2023).
References

indeed.com, (2023) Strategic Business Planning’s, [Available at:

https://www.indeed.com/career-advice/career-development/strategic-business-planning],
[Accessed on: 22nd July 2023]

hbr.org (2023), Strategic Planning in Diversified companies, [Available at:

https://hbr.org/1975/01/strategic-planning-in-diversified-companies], [Accessed on: 22nd July
2023]