Strategic Management and Business Policy

The strategic planning process has several steps that enable there to be the active making of policy in an organization. However, among all the significant steps analysis of the current state of the economic environment, which helps to define the future state of the company is the essential step. The reason is that when one has analyzed the current economic climate, it helps them to formulate other actions such as developing strategies, objectives, and eventually, implementation and assessment of the plan (Nieboer, 2011). This step is vital in all the industries unless that industry consists of a monopoly. The analysis enables a company to evolve, take risks, and explore new markets.

The business sector is highly competitive, and the failure to adapt could be detrimental such as the case of blackberry and Nokia, who were cell phone manufacturing giants between the late 1990s up to the early 2010s (Nieboer, 2011). These companies may have done a market analysis, but they wanted to maintain the integrity of their companies by not adopting the Android platform, and this led to these two companies’ significant decline to companies who were able to utilize the platform such as Samsung and Huawei (Nieboer, 2011).

Other companies may want to focus on different areas of the strategic planning process, such as the formulation of objectives and strategies. This is mostly for the service-based industries which can be able to maintain specific standards and still be able to give out their services (Nieboer, 2011). The most important thing with the service industry is how well one can give out their functions, punctuality, efficiency, productivity, and others (Nieboer, 2011). This can only be done well if the company can have objectives and strategies that enable them to achieve their vision.  

ReferencesNieboer, N. (2011), “Strategic planning process models: a step further”, Property Management, Vol. 29 No. 4, pp. 371-382.