With the immense competition between firms in the global industry, managers have to be creative and be able to adapt to changes in the environment. To be the leader in the industry, there must be clear objectives and goals, which need to be followed precisely. Strategic planners must factor not only on the domestic market but also the global one because many emerging economies are located outside of North America as illustrated in the Constructwell case. Some critical issues in the strategic planning process to be examined include: the importance of having a keen knowledge of one's internal and external environment; the value of proper implementation and execution of the strategic plan; and the significance of maintaining flexibility in the face of challenges in an ever-changing business environment.
A key element in forming a strategic plan is the evaluation of a company's position both individually and relative to the marketplace.
Self-evaluation will include a SWOT analysis incorporating all aspects of the business including financial and intellectual capital, external threats, and future opportunities. The importance of environmental scanning is paramount as it serves as the foundation from which action plans and goals are formed. As illustrated in the simulation, the decision-maker in this case sets out key objectives for the business from which the management team and strategic planners must endeavor to achieve. In short, a business must first comprehend its business; understand where it must go, then define strategies to reach those goals.
In the Constructwell case, the planning team had to create a strategic roadmap to guide the company into global markets and become the leader.. Irrespective of the size and objective of the company, strategic planning requires the business to gather the "right" information to base its decisions. Data must be pertinent and address key questions in order...