This paper will discuss the strategy planning management must go through when opening up an insurance agency. It will identify the strategic plan and the critical information that must be defined and analyzed by management. It will then discuss the importance of a solid strategic management plan. Lastly, it will identify the four functions of management and explain how they are relative to creating and implementing a strategic management plan.
Strategic planning and managementEven though everyone's definition of strategy will be different between each author, theorists have considered planning an essential part of organizational strategy. According to Dictionary.com, strategy is "the science or art of combining and employing the means of war in planning and directing large military movements and operations." (Dictionary.com, 2009).
Strategic planning will determine the course of this new business. A strategy provides a framework for managerial decisions, reflecting a company's awareness of how, when and where it should compete; against whom it should compete; and for what purposes it should compete.
(Pearce, Robinson 2004) As an owner of an insurance agency (Golden Rock Insurance Services), the first thing that needs to be accomplished is to identify Golden Rock Insurance Services purpose, which is accomplished with a mission statement. A mission statement will describe the purpose of the company, what services will be provided, the companies philosophy, and goals.(Pearce, Robinson 2004) The mission statement is a living statement and may need to be changed to meet the needs of changing times. Once the mission statement has been formulated, goals to be reached to accomplish the mission must be selected. Specific strategies and approaches must be implemented to reach each goal. Golden Rock Insurance Services internal and external environment need to be assessed and specific action plans to implement each strategy need to be identified. Once the...