Formal strategic planning for business, Strategic Management

Assignment Help:

LD is the owner and manager of her own florist business, LD Flowers. Although starting out initially as a hobby, it has developed into a sustainable business. LD's original business was based on using only flowers from her garden, but as the business has grown she has been forced to searching alternative supplies of flowers. Though, she has remained loyal to her ethical stance by choosing and buying her flowers only from local growers that she knows. She feels that this, together with her certain design of contemporary flower arrangements, differentiates LD Flowers from the other local florists and supermarkets which tend to offer more traditional arrangements using flowers imported from overseas.

Discuss whether or not LD is right to be doubtful about the relevance of formal strategic planning for her business.

The formal approach to strategic planning usually results in a consciously thought out or deliberately intended strategy. It supposes that strategy making is a rational process with methods based on careful analysis of the opportunities and threats posed by the external environment, and consideration of the organisation's strengths and weaknesses, relative to other players in the industry.

Whilst there can be advantages to adopting such an approach, the formal process may not be suitable for a small business like as LD's for the following reasons.

  • A formal approach can be very costly, time consuming and complicated for little businesses. LD is right to be concerned about the opportunity cost, not only in terms of attending the seminars, but also in terms of spending time on planning which could take her away from the major operations of her business.

 


Related Discussions:- Formal strategic planning for business

Three ways of sustaining competitive , Three ways of sustaining competitive...

Three ways of sustaining competitive benefit are? Ans) differentiation, Price-based strategies and lock-in

Strategy and organization analysis, 1. Describe and analyze the environment...

1. Describe and analyze the environment, strategy, and structure of your organization of choice. It is critical to provide evidence for your analysis. 2. Assess the challenges and

Evaluate the organisation''s strategic planning processes, Undertake the fo...

Undertake the following tasks : 1. Develop a position paper for enhancing the organisation's strategic capability by influencing the strategy in action. 2. Evaluate the organ

Evaluate the dividend yield, Q. Evaluate the Dividend yield? Creating ...

Q. Evaluate the Dividend yield? Creating shareholder value  Dividend yield Dividend yield     = (Dividend per share / Market share price) x 100% The dividend yiel

International aspects to transfer pricing, Q. International aspects to tran...

Q. International aspects to transfer pricing? The following issues can influence international transfer pricing decisions. Exchange rates e.g. fluctuations in global cur

Definition of shareholder wealth, Alfred Rappaport's definition of sharehol...

Alfred Rappaport's definition of shareholder wealth (value)  Shareholder value = corporate (business) value - Debt The corporate value represents the perpetuity of cash

Mensa, Develop a five-year strategic plan with cost estimates and a time li...

Develop a five-year strategic plan with cost estimates and a time line. It should be 5-7 double-spaced, typed (12 point) pages plus exhibits. Your plan should include/address the f

Explain activity based management, Q. Explain Activity based management? ...

Q. Explain Activity based management? Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources.  The aim is that once cos

Define global and international regional strategies, 1. What are the streng...

1. What are the strengths and weaknesses of the mission statement? Which of these statements are effective guides to decision-making within an organization? Which, if any, of th

Linking strategic organizational, Linking Strategic Organizational Initiati...

Linking Strategic Organizational Initiatives to Purpose, Mission, and Vision Select an existing business that is entering into a new or emerging market for that company. You may

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd