Reflection Essay on Strategic Enterprise Planning

  • Category:
    Business
  • Document type:
    Essay
  • Level:
    Masters
  • Page:
    2
  • Words:
    1180

REFLECTION ESSAY ON STRATEGIC ENTERPRISE PLANNING 6

Reflection Essay on Strategic Enterprise Planning

Reflection Essay on Strategic Enterprise Planning

In the recent years, companies have greatly pursued strategic enterprise planning as opposed to just enterprise planning. Despite the intensification, many students have never been given a chance to reflect on topic and present what they think. Therefore, in this essay, the paper will reflect on overall process of strategic enterprise planning and challenges which impacts its. Sen (2010, p.79) argued that the aim of reflection essay is to make students build their management competence and skills particularly on self management, strategic management and operational management. The reflection by the students show their critical thinking and involvement in a particular topic (McGuinness & Brien, 2007, p. 27). This reflection will touch on issues such as the advantages of strategic enterprise planning. On the other hand, the paper will focus on challenges such as drawbacks of business planning, conflicting expectations the key stakeholders and issues regarding access to key or core data.

Strategic enterprise planning has emerged as one of the most debated topics in the recent times by contemporary managers. According to O’Regan and Ghobadian (2002, p.663),strategic enterprise planning means formulating a business plan which focuses on the long-term goals, aligning business strategies to the market environment so as to reduce external threats, and aligning the organization’s capability with available resources. Current organizations find strategic enterprise planning beneficial to their operation. Economic changes such as falling or increasing exchange rate and changing interest are some the issues that business find itself to deal with. For instance, in 2008 the world experience economic downtown which is considered one of the worst. However, companies planning mean focusing ahead and anticipating issues which might affect the company. Companies which had planned continued with operation with a little disruption. A research by Wilson and Eilertsen (2010, p.6) showed that some companies changed their working style to part-time basis while others laid-off their employees for sometimes.

Similarly, technological change presents a major an opportunity for businesses. Technology like enterprise resource planning is today used to plan, make decision and other business processes (Katerattanakul, Hong & Lee, 2006, p.823). Many businesses in the market have since embrace technology and even update them to maintain the pace of change. Companies which plan ahead have already implemented such technology and find it easy to attract and retain customers. People now prefer online shopping where they can be informed of products, shop from home and get their products delivered to their door step.

Strategic enterprise planning is also important in performance management. Conway (2008, p.64) claimed that the approach helps the organization hire people who can handle different projects. The competence of employees determines the performance of the organization (Tapinos, Dyson & Meadows, 2005, p.375). Strategic enterprise planning as key tool assists in carrying out capability and resource analysis and related gap analysis so that the company can come with the way forward. O’Regan and Ghobadian (2002, p.663) opined that the strategic enterprise can assist the company to create a fit between resource and fit, and the market. However, the process highly needs the use of environment analytical tools such as Porter Five Forces, McKinsey’s 7S model and PESTLE among others to understand the business environment (Dincer, Tatoglu & Glaister, 2006, p.207).

Despite the significance of strategic enterprise planning, the concept also faces some challenges of industry levels. Companies normally have the intention of pursuing new market segment or just diversifying to another business. In conducting research about the segment or another industry, also find it hard to get the key data about the market. In my opinion, firms highly need data about the market to enable them formulate their strategic plan. Also, in trying to make corporate decision about attractive business, the manager may fail due to conflicting information and the industry. Business planning also has its limitation which could hinder its implementation. In several cases, I have found a situation where the relevance and practicality of the business planning differ across contexts and situations. Observation of the business shows rapid changes due to competition and technology. As such, context and situation changes so fast and business might find to difficult to use their there already drafted plan to a different situation. For instance, if a business had planned to implement a new price in the following month, a change in currency exchange rates may force them to review the plan.

I feel that conflicting expectations and priorities of key the stakeholders is a stumbling to achieving the objectives of the strategic enterprise planning. Dincer, Tatoglu and Glaister (2006, p. 207) contended that the process of enterprise planning is often carried by the top management for middle level and low level managers to implement. Despite being formulated by few people, all the stakeholders including the employees, customers, supplier and shareholders usually have their expectation and priorities concerning the strategy (Conway, 2008, p.61). The expectation and priority for the shareholders is that the management to do everything to increase their returns. For the shareholders, it does not matter the amount of resources the management use realize the profits. However, just like any other customer, I expect the company to use the fewer resources to produce high quality products. The reason attributed to this is that companies should use few resources to enable the upcoming generation to have capability to produce goods that will make them satisfy their needs (Darby & Jenkins, 2006, p.413).

In conclusion, the reflection essay has basically looked the importance and limitation of strategic enterprise planning. Operation of a company needs that the management finds a fit between internal environment and external environment. Such fit can be attained by aligning business strategies and market needs using strategic enterprise planning. However, the essay has established that process is faces various problems because strategic enterprise planning is affected by different factors including use of business planning in different situations, contradicting priorities and expectations of the key stakeholders and difficulty in accessing key data.

References

Conway, C. (2008). Business planning training for social enterprise. Social Enterprise Journal,

4(1): 57–73.

Darby, L., & Jenkins, H. (2006). Applying sustainability indicators to the social enterprise

business model. International Journal of Social Economics, 33(5/6): 411-31.

Dincer, O., Tatoglu, E., & Glaister, K.W. (2006). The strategic planning process: evidence from

Turkish firms. Management Research News, 29(4): 206 – 219

Katerattanakul, P., Hong, S., & Lee, J. (2006). Enterprise resource planning survey of Korean

manufacturing firms. Management Research News, 29(12): 820–837.

McGuinness, C., & Brien, M. (2007). Using reflective journals to assess the research process.

Reference Services Review, 35(1): 21–40.

O’Regan, N., & Ghobadian, A. (2002). Effective strategic planning in small and medium sized

firms. Management Decision, 40(7): 663-671.

Sen, B.A. (2010). Reflective writing: a management skill. Library Management, 31(1-2): 79-93.

Tapinos, E., Dyson, R.G., & Meadows, M. (2005). The impact of performance measurement in

strategic planning. International Journal of Productivity and Performance Management, 54(5/6): 370-84.

Wilson, J.W., & Eilertsen, S. (2010). How did strategic planning help during the economic crisis? Strategy & Leadership, 38(2), 5–14.