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

evening gown Strategic Planning - Essay ExampleUK is an abridgment for United Kingdom, Words in quote be exact words used by author.For a common man, the word strategy simply means being systematic. A tactic he leave alone 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 course performance of Hospitality SMEs and arrive into a realistic conclusion, we mustiness preparely identify every aspect of SP and business operations of SMEs.Strategic Planning definitions or performance varies in the environment and business type. A more general and whitethornbe the most practical interlingual rendition of the term is concern with long-term direction of the organization (ORegan et. al., 2002). It is where an organization defines the business they should to take on and controvert their business activities to the current situation while taking great consideration to the resources on hand .This m ode by and large helps to reduce the threats and take full advantage of opportunities. However, SP although a long-term plan may constantly change in order to survive and maintain 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 competent and effective management tool to augment the companys ability or strength in similitude to its business adversary. Strategic prep maybe categorized into two types, informal 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 maturation 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 oppo site to larger firms approach of identifying their marks and objectives. The author also added that informal planners in small firms undergoes some manakin of strategic decision-making action at law 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 setting up of clear goal and processes to regard a particular task. It is therefore worth considering that the statements provided points to informal planning as the type where smaller firms are focusing 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 no t mention a universal definition to separate or set a clear distinction 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 harry D., (2000) referring to Hickson et. al. (1969),size is an important