Corporate Level Strategy

There have been some arguments against the usefulness of formulating a long term strategy as it is  just an exercise  which offers no positive directional indicators for decision making in a volatile market environment. Notwithstanding  that, developing a long term corporate strategic plan do have its own justifications which organizations can benefit from its implementation.

A corporate strategic plan is concerned with the long term, and the long term is an essential dimension in the overall survival pattern of the company. The planning discipline concentrates management’s attention on long-term matters, but not necessarily at the exclusion of short-term considerations. Free-wheel planning is bound to foucs only on  the short-term  and there is evidence to suggest that this is perilous.

One of the  essential component of a corporate strategic plan is it  requires the clarification of corporate objectives. The proces aids in the formulation of organizational goals and objectives and the strategy formulation process can be used to evaluate whether or not the tentative objective established are achievable given the organization’s resources and the nature of the changes occuring in its environment, and, if not, what other objectives could be achieved.

The systematic survey of the environment involved in strategic planning  can only be improve the basis of information on which trends are identified, projections made and evaluation criteria produced. Strategic planning quantifies long term resource problems and produces a basis  upon which resources can be planned and rationed between programs.

Long, medium and short-term plans can be intergated  based on a corporate strategic plan. It helps to harmonize activities of different department  and functions.  The planning process results in people from different functions working together in teams, and the plan itself clarifies the contribution made by the different functions to the achievement of overall objective.

Strategic planning demands a logical, deliberate and analytical approach to decision making. It requires the generation of alternative strategies, and the evaluation of the probable results of their execution. The corporate strategic plan formulated can be used as a yardstick against which actual performance can be judged and remedial needs identified.

The strategy spells out in definite terms the responsibility and authority of each executive and management activity. This tends to boost morale, and produces better results since most groups and individuals perform better if they know what is expected of them and how they contribute to the overall progress of the company.

In conclusion, a long-term corporate strategic plan when developed and implemented imaginatively, and conducted in the right atmosphere of communication, participation and incentive, helps to develop a climate conducive to creative thinking, initiative and innovation.