STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT, ASSESSMENT A Essay

STRATEGIC MANAGEMENT IN A GLOBAL CONTEXT, ASSESSMENT A - Essay Example Formal strategic planning is a process of decision making where suggestions are taken from the top level management towards making effective decisions within the organisation. It is worth mentioning that formal planning cannot be really effectual unless managers apply their fundamental knowledge, judgement and perception about the planning process (Steiner, 2010). On the other hand, alternative strategic decision-making is a modern process of defining a strategy or direction and making decisions by replacing formal procedures with the prime motive of solving issues with aid of inculcating circumstantial restraints and significances. With the growing competition in the global marketplace, many critics believe that formal strategic planning does not meet the current dynamic market requirements while making effective decisions and alternative forms of decisions making are more appropriate while making any decision (Popa, n.d.). With these considerations, the main objective of this study is to provide a detailed analysis which would depict that alternative forms of strategic planning are more appropriate for organisations that operate in highly uncertain and dynamic environments. Discussion Today’s business environment is considered to be in one of the most competitive industrial environments. With the rapid technological developments and the increasing competitors’ demands for new goods, the strategic planning process is also evolving at a rapid pace. It has therefore become vital for every organisation to implement plans that would not only aid them in maintaining their leading position but also facilitate them in attracting more customers by fulfilling their current demands. Strategic planning is determined to be an organisational management function that is utilised for setting priorities, resources, strengthening operations and ensuring that the employees and other people associated with the organisation are working in a collaborated manner towar ds the accomplishment of a common goal. It also helps in establishing an agreement around intended outcomes along with accessing and adjusting the organisational functionalities in accordance with the changing environment (Hitt & et. al., 2012). However, there have been numerous discussions amid different critics about the nature and the disadvantages of traditional strategic planning. Nature of Traditional/Formal Strategic Planning Approach Traditional strategic planning process mainly utilised theoretical and management tools to implement steps that would aid in attaining the future goals of the organisation. However, the effectiveness of the process mostly relies on how well the plan has been defined, the level of the organisational readiness to implement new changes in its functional process and its commitment towards building actions to achieve the organisational objectives (Eoyang, 2003). However, with the growing challenges in the business world, there has been an emergence o f a number of limitations arising out of traditional st