Formal Strategic Planning Essay Example | Topics and Well Written Essays - 2000 words

Formal Strategic Planning - Essay ExampleUK is an abbreviation for United Kingdom, Words in quote are consume words purposed by author.For a common man, the word strategy simply means being systematic. A tactic he will use to ensure his success or to his belief is the right way to prevail. If we are to really critically analyze the impact of formal SP to the origin performance of hospitality SMEs and arrive into a realistic conclusion, we must clearly identify every aspect of SP and business operations of SMEs.Strategic Planning definitions or implementation varies in the environment and business type. A more general and maybe the most practical interpretation of the term is concern with long-term direction of the presidential term (ORegan et. al., 2002). It is where an organization defines the business they should to take on and match their business activities to the current situation while taking great consideration to the resources on hand .This method by and large helps to re duce the threats and take full advantage of opportunities. However, SP although a long-term plan may constantly change in order to survive and verify equilibrium to the ever changing business environment. It should forestall and act in response to its varying dynamic operational environment (ORegan et. al, 2002). It is then a commensurate and useful management tool to augment the companys ability or strength in relation to its business adversary. Strategic planning maybe categorized into twain types, liberal and formal. The informal type of SP, referring to Robinson and Pearce, 1983, along with several authors, is likely occurring in smaller firms than larger ones (Hannon et. al, 1997 p.105). They stress that it is the size of the business and the stage of development of that business influenced the nature of planning. In addition, smaller businesses tends to aim more and concentrate on the process of planning (Hannon et. al., 1997, p. 105) which is opposite to larger firms app roach of identifying their goals and objectives. The author also added that informal planners in small firms undergoes some kind of strategic decision-making activity which is also similar to the strategies being perform by formal planners. They also believed that the activity or the process itself has more advantage to small firms than the production of written or formal outputs (Hannon et al., 1997, p.105). Formal planning according to Armstrong, (1992), as stated by Hannon et. al., (1997), is the orbit up of clear goal and processes to realize a particular task. It is therefore worth considering that the statements provided points to informal planning as the type where smaller firms are cogitate largely on the business operation process rather than output or goal of the process. Formal strategic planning according to Cox B., (2005) though, is a top-down, vision-driven process to develop an organizations future value. Although literatures do not mention a universal definition to separate or set a clear government note between formal and informal SP, we may define informal planning as a less documented and unofficial but similarly effective and efficient type of SP.According to Needle D., (2000) referring to Hickson et. al. (1969),size is an important