“Role of Strategic Planning and Implementation in Guaranting the Success of Profit and non for Net income Making Organizations”
1. Strategic planning ; Introduction
Planning is necessary for everything. Without the cognition of where to travel and how to travel, it is really hard to make at the finish and you are likely to acquire lost on the manner paralyzed by the uncertainnesss and surprises. The same instance applies to the concern that operates in competitory environment. Without the clear marks and the guidelines to make them, any concern can non last and has to retreat from its concerns. The marks and the guidelines of a concern constitute the concern scheme. In this respect, Ansoff ( 1965 ) says “business scheme is the wide aggregation of determinations, regulations and guidelines that define a concern ‘s range and growing direction.”
In its scheme, an organisation formulates its grounds for being which is the mission, and set its intents and aims. Once the aims have been set, it forms action programs which are the policies and plans to accomplish the aims. Merely the mission and the action programs do non vouch that a concern organisation is in the right path. Different methods are to be employed to guarantee that the things are taking the right way and the concern is developing towards its mission.
A concern has to maintain all these things in consideration at the beginning of the concern and set its program and policies to turn to the changing environments. While strategically believing is really of import to directors, good directors must hold the foresight and must be able to bring forth and measure a figure of worthwhile schemes sing the nature of the concern, the environments it operates in, the capablenesss and the resources it has. That is why, strategically believing is really of import to the directors and strategic planning has got prominence in the concern.
The term strategic planning has been used to mention to a procedure of specifying an organisation ‘s future way or its scheme. Robson ( 1997 ) defines Strategic Management as the survey of symptoms and omens of the hereafter and construe them so as to take an appropriate way for the hereafter development of the organisation. The future clip mention in the strategic planning may run from a twelvemonth to 4-5 old ages.
However, some organisation might be after for long period up to 20 old ages. The clip period fluctuation is considered to be depending upon the nature of the concern. The longer the clip period, the harder it is to pull off the strategic planning. In anyhow, it highlights the methodological analysiss to be adopted to make to the finish. A successful strategic planning non merely tells where an organisation is traveling in the close hereafter and how, but besides the ways of mensurating the accomplishments of the program.
Strategic planning is all about the class an organisation takes as a portion of a scheme. Strategy has been defined as “the form of determinations made for allotment of resources throughout an organisation. These encapsulate both coveted ends and beliefs about what are acceptable and, most critically, what unacceptable means for accomplishing them.” ( Robson, 1997 ) Strategic be aftering Tells how these determinations are made and what kind of methodological analysiss and techniques are adopted to accomplish the coveted ends and aims. It successfully posits and relates the house to its environment to guarantee the continued success. It looks beyond the twenty-four hours to twenty-four hours operations of an organisation to a long-run chances and development. A strategic program begins with the articulation of specific ends and so specifies the action programs and the agencies to get the ends.
2. Net income and non for net income devising organisations
As the name suggests, net income devising companies have the primary intent to do net income. Contrary to it, non for net income devising organisations exist for the cause of philanthropic gift, for the public assistance commissariats. Social solidarity and the service for the humanity is the lone and the concluding cause of the being of the non for net income organisation. Although the net income devising organisation
besides serve the people and are accountable to the society but take money for the merchandise and service they offer. The private companies and public companies are the illustrations of these. The non for net income sector constitutes the private, voluntary and other non-profit-making organisations. Net income devising and non for net income devising organisations differ from each other in footings of their orientation and the manner they finance their activities. Harmonizing to Anheler ( 2005 ) Nonprofit organisations are internally focused on their members and know apart in footings of willingness to welcome and function members or clients who come from different in religion, beliefs, and societal position. In footings of bring forthing fiscal resources, the non-profit-making devising organisations depend on contribution, gifts, grants, dues and public subsidies.
On the other manus, the net income devising organisations are oriented towards their clients and randomly function them every bit long as they are willing to pay for their merchandise and services. Business signifiers leverage their finance by bear downing the monetary values for their merchandise and services and the authorities bureaus finance their activities through revenue enhancement. Whatever the difference between them, both the net income and non for net income devising organisations must hold the ends and aims, programs and policies to accomplish the aims and methodological analysiss to guarantee that things are taking topographic point good. Both of these sorts of organisation must organize the scheme for their success. Strategic planning is really of import for them.
The major difference in the manner these two different types of organisations carry out the different stairss and the associated activities in the planning procedure is supposed to depend on the size and graduated table of the organisation than on the net income devising and the non for net income devising position. The planning activities the smaller organisations conduct be given to be similar despite being net income devising and non for net income devising position. On the other manus, big not-for-profits and big for-profits tend to carry on slightly similar planning activities that are different from those conducted in little organisations.
The focal point of the planning activities is frequently different between for-profits and not-for-profits. Nonprofit organizations tend to concentrate more on affairs of board development ; fundraising and voluntary For-profits tend to concentrate more on activities to maximise net income. Besides, in add-on to the size of the organisation, differences in how organisations carry out the planning activities are more a affair of the nature of the participants in the organisation — than its for-profit/nonprofit position. ( Beginning: managementhelp.org ) . Both sorts of organisations involve the undermentioned procedures in strategic planning.
Although there is no homogeneousness in the ways the planning scheme takes topographic point in different organisations, they exhibit similar type of theoretical account with some of the discrepancies.
3. Strategic planning of Vodafone
3.1. Vodafone: Introduction
Vodafone is a nomadic company. It runs its concern in Europe, the in-between East, Africa, Asia Pacific and the United provinces. It operates through its subordinates, joint ventures, and associated projects and investings. The group had 323 million clients as per the registered record as at 30 September 2009. It has the entire marketed capital of about 71.2 billion dollar as at 12 November 2009. www.vodafone.com
3.2. Company Mission
Mission statement of any organisation articulates its ground for being trying to reply the inquiry: What concern are we in? “a cardinal intent of the organization” ( Robson,1997 ) . The mission statement represents what the senior directors want to accomplish in the hereafter: their position about the hereafter of the organisation. It clearly defines what they are non making thereby are giving the guidelines for the class of action they will follow. Vodafone has the mission statement:
We will be the communications Leader in an progressively affiliated universe. ( www.vodafone.com/start/investor_relations/strategy0.html- ( Assessed on 15th Jan.2010 )
3.3. Company Vision
Vodafone clearly states that it will go the planetary nomadic telecommunications leader through net income, clients and value. ( www.vodafone.com ) . Although, the vision and mission are frequently converged, some organisations province their mission and vision individually. Harmonizing to Anheier ( 2005 ) , “a vision conveys the ideal image hereafter of the organisation, its aspirations, and hopes of what it will go, accomplish, or contribute.” It inspires and works as a model for the preparation of mission. Vodafone ‘s vision is to do nomadic web systems “nervous System” of the closely interrelated developed markets of a Europe, US and Japan.
3.4. Goals of the company
Goals define the future places of the organisations. Goals and aims are frequently used interchangeably. If they are separated, ends refer to wide and dateless statements of the terminal consequences and aims are quantitative and qualitative steps of the ends. ( Robson, 2005 ) Vodafone has the following aims to accomplish its mission.
O To go the one of the universe ‘s top five trade names.
O To retain the Market Leadership.
O To widen its services in the emerging market of Asia and Africa.
O To present the invention in the usage of Mobiles conveying edification in the usage. ( beginning: www.vodafone.com )
3.5. SWOT Analysis of the company
Any company operating in the competitory market has to measure its current place, and SWOT analysis provides the footing for the company ‘s resources capableness scansion which is internal to the organisation and the environmental scansion which are external environmental context in which the Company operates. Strengths and failings ; chances and menaces are the major Factors a company has to see in the preparation of the concern schemes. Vodafone ‘s SWOT analysis has the undermentioned consequence.
Vodafone has brought the variegations in nomadic telecommunication with fastness in its operations in the markets of Europe, the Middle East, Africa, and Asia Pacific and the US. It has the large presence in Japan and the prima place in the India. Its strategic confederation with Apple iphone is besides the strength of Vodafone. Besides these, the strengths help the company place the nucleus values and explicate the scheme.
SWOT analysis helps the company place the failings whereby the company would do the schemes to cut down its failings by the reconfigurations of its operations. Vodafone has the undermentioned failings that help determine the schemes. The Vodafone ‘s big per centum of operations, 80 % , is in Europe and its US concern is non every bit strong as Europe.
Vodafone can work its strengths to prehend the chances that lay unfastened in the market. It has the chances in the developing markets of Asia and Africa, the cost decreases in India, and the research and development of the new engineerings in the nomadic phones. Strategy will concentrate to work these chances.
Menaces are the external factors that pose hinderances for the enlargement and development of the company. The extremely competitory market of the nomadic phones, European Union ordinances on cross boundary line cell phone are the menaces that the company has to undertake by explicating the schemes. www.researchandmarkets.com/ … /vodafone_group_plc_company_analysis.pdf [ 15th Jan 2010 ]
Besides these, a company has to make the environmental scanning before doing the determinations. The tools for making this are PESTEL analysis and the PORTER ‘S FIVE FORCES analysis. It is every bit of import for Vodafone to analysis these forces for the formation and the execution of the schemes.
3.6. Schemes of the company
3.6.1. Corporate Social Responsibility Strategy
Vodafone closely knows that to happen its vision, it has to maintain the clients trust and trueness integral and do certain the clients admire its merchandise. The manner it does concern ensures the clients ‘ trueness. Vodafone enhances its repute and physiques client vicinity by complecting concern scheme and its corporate duty scheme. ( www.thetimes100.co.uk ) . When a concern succeeds in run intoing the demands of the society, it gets ample chances to spread out and increase its concern. Along with its concern scheme of enlargement, Vodafone sets clear precedences
* Capture the potency of Mobile to convey socio-economic value in both emerging economic systems and developed markets, through broadening entree to communications to all subdivisions of society.
* Deliver advancement against stakeholder outlooks on the cardinal countries of clime alteration, a safe and responsible cyberspace experience, and sustainable merchandises and services.
* Ensure our operating criterions are of a consistent and appropriate degree across the Group. ( www.thetimes100.co.uk/ Business Case Studies/Vodafone/ Vodafone ‘s corporate Duty: Assessed: 15th Jan,2010 )
3.6.2. Business Scheme:
In the globally competitory market place with a big figure of bing and emerging nomadic companies, Vodafone is required to keep be really advanced and client oriented attacks to keep the bing market and cruise the new market. Vodafone has adopted two attacks in its concern scheme:
126.96.36.199. Merchandise Extension:
Vodafone knows that edification in the bing merchandise and services is the key to its endurance in the already established market. New characteristics, dimensions and efficient and effectual client service are the key to it. In the developed market of U.K. , USA and Europe the users are really sophisticated and they expect new maps in their Mobiles. Vodafone has developed new ways of presenting the merchandise and services with baronial maps help Vodafone to retain the bing clients and pull the new 1s. 3G engineerings have improved the ability and quality of reassigning voice and informations. Very fast cyberspace velocities allow extended services such as picture naming, music downloads, nomadic telecasting and electronic mail messaging.
188.8.131.52. Expansion in the emerging Market:
Vodafone is continuously endeavoring to spread out its concern to the remotest portion of the Earth where the people do non hold an entree to the nomadic phone. These countries include the topographic points which are non developed in their substructures rendering the landline communicating really hard. Vodafone seems to be committed to supplying these markets with the engineering to develop communicating that will assist both economically and socially. There are supposed to be more than four billion nomadic phones across the universe and 64 % of all users in a underdeveloped state ( www.thetimes100.co.uk/ Business Case Studies/Vodafone/ Vodafone ‘s Business Strategy: Assessed: 15th Jan,2010 )
3.6.3. Corporate scheme: –
As a portion of corporate scheme, Vodafone aims to go the universe ‘s top five trade names. To accomplish this, it has adopted the affaire d’honneur stigmatization policy with the 30 companies to spread out its planetary presence. It includes the locally recognized trade name and the Vodafone name. The policy is one time the Vodafone name becomes widely accepted ; Vodafone is believed to go the exclusive trade name.
The best illustration of it is its sponsorship trade with Manchester United. The commercial confederation between Manchester United and Vodafone was announced in February 2000 and Vodafone became the chief patron of telecommunications and equipment service spouse of the nine. The intent behind it is to set up its trade name in those topographic points where Manchester United is a good trade name and Vodafone has non yet been established.
www.thetimes100.co.uk/ Business Case Studies/Vodafone/ Measuring the Success of the Strategy: Assessed: 15th Jan, 2010
3.6.4. Measurement of the Success of the schemes.
Once the schemes are formulated, a concern organisation has to set up the measurement yardsticks to see the effectivity of the programmes implemented. Vodafone recourses to the following ways to mensurate the success of the execution.
* Consumer research is done to mensurate the general consciousness.
* The impact and accoutrements is measured by charting ongoing betterments in gross revenues.
* The effectivity of the value added activities is measured through the figure of people registered in the services.
* Exposure of the company is besides measured by supervising the media coverage.
www.thetimes100.co.uk/ Business Case Studies/Vodafone/ Measuring the Success of the Strategy: Assessed: 15th Jan, 2010 )
4. Strategic planning in non for net income organisation
4.1. Ford Foundation, U.K.
Established in 1936, The Ford Foundation focuses ‘on work outing world ‘s most urgent jobs. ‘ Ford Foundation adopts the traditional and recognized attacks to work out these human related jobs. The Ford Foundation makes grants to many organisations that are working for the public assistance of the people for the scientific, educational and charitable intents. It is international philanthropic organisation working for the promotion of the human public assistance.
4.2. Mission of the Ford Foundation
The mission of Ford Foundation is to construct a perfect planetary society. It has the undermentioned ends as a portion of its mission: Strengthen the democratic values, Reduce poorness and unfairness, Promote international co-operation, Advance human accomplishment.
( Beginning: www.fordfound.org/about/mission )
In its manner to it, the Foundation gives extended support to the leaders and organisations that are working in the head of the society to convey alterations in the society.
“The Ford Foundation is a resource for advanced people and establishments worldwide.” ( Anheier, 2005 )
4.3. The Organizational Values of Ford Foundation
The Ford foundation purposes to advance human public assistance through the creative activity of political, economic and societal systems which in bend enhances the peace and sustains the environment. It seeks to accomplish its mission through concentrating on the factors on which the humanity depends.
The Foundation has planned to battle with the challenges by remaining near to the topographic point where the jobs are acute. For this, it collaborates with other non-profit-making organisations and concern sectors and guaranting the engagement of work forces and adult females from all subdivisions. The organisation believes the people centered activities boost the common apprehension, better the lives and the conditions of the society.
“We work chiefly by doing grants or loans that build cognition and strengthen organisations and webs. Since our fiscal resources are modest compared with social demands, we focus on cardinal job countries and plan strategies.”
Susan V. Berresford ( President, Ford Foundation ) ( Beginning: www.fordfound.org )
4.4. Strategic Focus of Ford Foundation
The strategic activities of non-profit-making organisations depend upon the values it holds for the interest of humanity. For the successful accomplishment of the ends and mission an organisation has to choose the cardinal countries to work. The Ford Foundation has the following strategic countries to work.
o World peace and the constitution of a universe order of jurisprudence and justness.
o Basic rules of freedom and democracy in the solution of the repetitive jobs of an ever-changing society.
O To progress the economic wellbeing of people everyplace and to better economic establishments for the better realisation of democratic ends.
O Strengthen, expand and better educational installations and methods to enable persons more to the full to recognize their rational, civic, and religious potency ; to advance greater equality of educational chance ; and to conserve and increase cognition and enrich our civilization.
o Increase cognition of factors which influence or find human behavior.
( Beginning: – www.fordfound.org/newsroom/speeches/149 ) : Assessed on 14th Jan 2010
4.5. Core Issues of the Ford Foundation,
“Our plans will turn to eight important societal justness issues. These issues are grounded in our mission and history and will be familiar to our partners.”
( President Message, September 8, 2009 )
o Access to Education.
o Democratic and accountable authorities
o Economic equity and chance
o Social Justice Philanthropy
O Freedom of look
o Sexuality, generative wellness and right
o Natural resources and sustainable rights
o Social justness philanthropic gift
( www.artsjournal.com/ … /ford-foundation-announces-new.html: Assessed on 14th Jan 2010 )
Based on these values and the ends, the Ford foundations supports and launches the single programmes worldwide in coaction with other spouse organisations.
Strategic planning has great function for the success of any organisation whether the organisation is net income devising or non for net income devising organisation. Without the clear thought of the intent, the manner to take to prosecute the intent and the clear and good defined activities, an organisation gets lost on the manner and simply witness the loss of clip, resources and attempts. Clearly defined ends and aims consistent with the mission help the organisation in many ways.
Communicating the ends and aims to the constitutional portion of an organisation, developing a sense of ownership, guaranting the most effectual resources concentrating on the cardinal precedences are the cardinal issues in an organisation. Meanwhile, an organisation has to set up the mechanism to mensurate the procedure. These are the issues that can be addressed by strategic planning of an organisation. To sum up, we can state that the strategic planning provides the organisation clear position supplying greater attempt ant efficiency.
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