A Critical Review of ‘the Fall and Rise of Strategic Planning’

In: Business and Management

Submitted By selene816
Words 2580
Pages 11
A Critical Review of ‘The Fall and Rise of Strategic Planning’
The arrival of strategic planning had attracted general attention because it implanted in managers’ minds a kind of imperative about the process that was rational and future-oriented (Mintzberg et al, 1998). Nevertheless, Whittington (2001:4) observed,
“the plan is bound to get forgotten as circumstances change”. The purpose of this essay is to critically review ‘The Fall and Rise of Strategic Planning’. Firstly, the position of this article in the wider debate will be given followed by its theoretical underpinnings and its main strengths and weaknesses respectively. A conclusion will be drawn on the article’s contribution to the field of business strategy.

The article’s position falls in between Whittington’s classical and processual approaches. On one hand, Mintzberg challenged the traditional classical planning and progressed towards the processual approach through identifying three fundamental fallacies. Firstly, classicalists held conventional wisdom that the world was sufficiently stable that today’s planning could forecast and fit market changes
(Whittington, 2001). However, Mintzberg (1994:110) took the fresh view that the prediction of discontinuities was “virtually impossible” through questioning Ansoff’s
“extraordinary statement”. Hogarth and Makridakis (1981) strengthened that longterm prediction was notoriously imprecise. If Wilbur Wight had anticipated the prevalence of airplanes nowadays, he would not have said “not within a thousand years will man ever fly” in 1901 (Coffey, 1983 cited in Whittington, 2001). Therefore,
Mintzberg favoured the processual approach that strategic planning should be evolving to adapt to complexities in an unpredictable world (Burnes, 1996).

Secondly, the classical school believed that strategies are best created at one remove from the…...

Similar Documents

Critical External and Internal Effects That Affect Firms Strategic Planning

...Issue 51 (2010) © EuroJournals Publishing, Inc. 2010 http://www.eurojournals.com/finance.htm Critical Internal and External Factors that affect Firms Strategic Planning Kay Dora Abd Ghani Faculty of Civil Engineerings, University Teknologi MARA, Malaysia E-mail: kaydora@perlis.uitm.edu.my Surina Nayan Academy of Language Studies, University Teknologi MARA, Malaysia E-mail: surinana@perlis.uitm.edu.my Sheikh Ahmad Izaddin Sheikh Mohd Ghazali Faculty of Applied Science, University Teknologi MARA, Malaysia E-mail: sheikhahmadizaddin@nsembilan.uitm.edu.my Latisha Asmaak Shafie Academy of Language Studies, University Teknologi MARA, Malaysia E-mail: ciklatisha@perlis.uitm.edu.my Suhaimi Nayan UniKL Malaysian Spanish Institute, Malaysia E-mail: suhaimin@msi.unikl.edu.my Abstract Every firm that involves in business activity has its own strategy to operate its daily business. Strategic planning is the important element in every firm strategic management. There are various methods and techniques that can be employed in order to implement strategic planning and one of them is by using the SWOT analysis. SWOT analysis refers to strengths, weaknesses, opportunities and threats. Strengths and weaknesses are the internal factors of an organization and opportunities and threats are the external factors. This is a study on critical internal and external factors that affect the strategic planning of land developers in Malaysia. Questionnaires were distributed to get information needed.......

Words: 3146 - Pages: 13

Rise and Fall of Nortel

...This essay will outline events that lead to the fall of Nortel network, a very successful Canadian maker of telecoms equipment in the late 1990’s. Nortel was huge and ranked as one of the largest firms of the world. This success did not last long as acquisitions of fraud, misalignment of funds among other unethical behavior were occurring. Small investors and stakeholders incurred the biggest loss. Nortel Network, a Canadian technology company was considered a fast-moving giant. The company was quick to integrate acquisitions and developed and built innovative telecom products. It seems as if nothing could stop the growth and uprising price of shares. The downfall of Nortel began when the top executives were accused of falsifying reported earnings. Top-notch executives were buying and selling stock within their retirement plans and massive accounting discrepancies were discovered. These suspicious outcomes let the United States Securities and Exchange Commission (SEC) to launch an investigation in April 2004. The company continued to plunge and deteriorate. In January 2009, Nortel filed Chapter 11 bankruptcy protection in the United States, and Companies' Creditors Arrangement Act (CCAA) in Canada. The rise of Nortel was due to innovation and timing. In July 2000, at the height of its success, with a market capitalization in excess of $350 billion Canadian dollars, Nortel accounted for 37 percent of the Toronto Stock Exchange Composite Index Value (Collins, 2012). This......

Words: 1748 - Pages: 7

Strategic Planning

...IT STRATEGIC PLANNING “You’ve got to be very careful if you don’t know where you are going, because you might not get there.” Yogi Berra BACKGROUND Henry Mintzberg, former president of the Strategic Management Society, points out that “strategy can not be planned because planning is about analysis and strategy is about synthesis.” 1 Failure to recognize this basic distinction accounts for the frequent failure of such exercises, as does an excessive focus on technical detail, lack of suitable leadership, and perhaps most important, failure to align technology to institutional mission and priorities. Strategic planning involves a structure or framework, a set of procedures (both formal and informal), and of course content. Beyond these basic elements, the underlying assumptions about strategic planning are that the future can be anticipated, forecasted, managed or even controlled, and that the best way to do so is to have a formal and integrated plan about it in place. The process of planning itself may turn out to be more important than the results, and that process requires, as Mintzberg suggests, both analysis and synthesis. Planning simply introduces a formal “discipline” for conducting long-term thinking about an institution, and for recognizing opportunities in and for minimizing risks from the external and internal environments. Among the hundreds available, perhaps the most well-know model of strategic planning has the SWOT (for strengths, weaknesses, opportunities...

Words: 4766 - Pages: 20

Rise and Fall of Circuit City

...This case covers the time period in Circuit City’s his Alan McCollough to halt the sale of appliances Schoonover to lay off 3,400 employees in 2007 sound strategic business decisions, target marketing, and customer input. points to the need for a retailer in such a competitive marketplace, with both brick and online competitors, to find its c customer value are keys to success. This case is suitable for both undergraduate and graduate courses in Marketing and/or Business Administration or Management, in areas where the students are stu Business Strategy or Marketing Planning. BRIEF HISTORY Circuit City opened its doors to the public in 1949 under the name of Wards Company. This date marked the beginning of the electronics superstore concept in the United States (BCRC, 2009). Within 10 years, Wards became a four store chain with total sales of $1 million per year (BCRC, 2009). In 1965, the company began its expansion through the acquisition of several television and home appliance stores in the United States (BCRC, 2 came under new management and the focus shifted to consolidating the business. all unprofitable stores and invested the revenues generated in a $2 million electronics superstore (BCRC, 2009). The store shifted Ward’s focus from home appliances to the growing consumer electronics market. It offered more than 2,000 products, including video and audio equipment and major appliances. Due to the company’s high volume sales, it was......

Words: 675 - Pages: 3

Rise and Fall

...John Brooks World Civ1 The rise and falls of the Persian Empire Chapter 3 Mr. Smith ] John Brooks World Civ1 Mr. Smith Term Paper June 7 2014 Introduction The Persian and the Medes migrated into Iran before 1000 B.COnly a few people in this world today can boast a longer and prouder history than the Iranians, descendants of the ancient Persians. They build the greatest empire of the ancient Near East, but they also absorbed the ancient civilizations they ruled, in particular that of Mesopotamia. The Persians were first encountered around 2000 B.C.E, emerging from the grassy steppes of Central Asia, in the north.  At that point, they were closely associated with two other peoples: the Medes and Aryans. Although Cyrus had found the Persian Empire Darius 1 gave it an internal organization and structure that allowed it to last for 200 years. His accomplishment, are more impressive when we consider the empire's enormous size, the scale of which no one had ever dealt with before. The Persians, like most ancient peoples, started out with a polytheistic religion to account for the forces of nature. This was a dualistic religion, which meant it saw life as a constant struggle between the forces of good and evil. Rise of the Persian Empire Most of the credit of the rise of the Persian Empire was due to the first Achaemenid Emperor, Cyrus the Great. He founded Persia after he united the Medes and the Persians to build a great Empire. He came to power in......

Words: 1270 - Pages: 6

Rise and Fall of Nokia

...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through......

Words: 6204 - Pages: 25

Strategic Planning

...financial assets and those that may emanate from fluctuating financial claims (deposit liabilities) * Financial risks – 6 types: * Interest rate risk: lender of money - loss of interest income caused by changes in market interest rates. borrower of money, - to pay more for debt * Liquidity risk: risk not being able to repay its depositors on demand or require date, on expiry of the agreed period of notice or on due date OR not being able to meet its cash commitments when required. * Investment risk: the possibility of negative variation in the value of financial instruments owing to market changes. * Credit risk: risk that a debtor will fail to service the interest payments or to repay the capital when it falls due either because of bankruptcy or for any other reason, thereby causing the asset holder to suffer financial loss. * Currency risk: The impact that fluctuations in exchange rates or commitments payable in foreign currencies. * Capital risk: Enterprises own capital resources (shareholders' funds) may be negativly affected by losses stemming from the risks to which it is exposed. * may be regarded as incidental business risks for one enterprise OR May be core business risks for another. * Generally speaking, financial risks are the core business risks of financial institutions because the main business of a bank is financial (it is about money as such). 4.2. Event risks/Operational risks * Event risks......

Words: 25267 - Pages: 102

Strategic Planning

...Strategic Planning and the Nursing Process In any healthcare organization, the nursing process works hand in hand with the strategic planning procedure. Nurses are therefore required to be involved in the strategic planning process. The two processes are rather similar. Strategic planning is the process the organization uses to define its direction and make decisions allocating its resources, whereas, the nursing process is a 5 step method used by nurses to ensure the quality of patient care. These processes require the use of informatics as an instrument to achieve the goals of the organization. Strategic Planning and Nursing Process Strategic planning is used to ensure that both short and long term goals of the organization are in tune with the mission of the organization and to ensure that the goals are achievable. The steps of strategic planning are: identification of goals, assessing external and internal environments, analysis of collected data, identification of potential solutions, choosing next steps, implementation of actions, and ongoing evaluation in the perspective of bench marks (Hebda & Czar, 2013). Informatics is an important part of strategic planning and helps to guide the direction and execute the goals set by the organization. Similar to strategic planning, the nursing process is used to administer patient care in a manner that is goal targeted and methodical. Although the five step process of assessment, diagnosis, planning, implementation and......

Words: 716 - Pages: 3

Pittsburg Rise and Fall of Central Planning

...economics is not something that can merely be analyzed, controlled, and distrusted. This quote calls out the entire theory of central planning in a nut shell. Mankind can not design an entire country’s market through central planning. The markets can not be controlled by government suppression and regulation without leaving someone worse off. Central planning is meant to increase productivity by regulating government resources and using those resources in a controlled, dispersed manner. This idea sounds good to the common ear but if you look at the past, central planning has not worked. Look at North Korea and Cuba’s past rap sheet. Those countries turned central planning from a controlled allegation of resources, to a withholding of resources used as a means to distribute power. Central planning has proven faulty to the control of a “free” market. Markets cannot be free if they are controlled by central planning tendencies. Tucker describes the booming city of Pittsburgh as a, “…beautiful, bustling city with surprisingly clean air, low unemployment, and happy people everywhere.” Pittsburgh was not always this way. It came from a profitable steel industry that the government did not want to let go. When the steel industry was in dove into decline, the economy of Pittsburgh suffered. Unemployment rose while as industry declined. Central Planning attempted to recover the steel industry but it proved useless. The steel industry collapse caused a shift in the market and......

Words: 338 - Pages: 2

Strategic Planning

...STRATEGIC PLANNING: A TEN-STEP GUIDE* I. IMPORTANCE OF PLANNING There is broad agreement among nonprofit leaders and experts that planning is a critical component of good management and governance. Planning helps assure that an organization remains relevant and responsive to the needs of its community, and contributes to organizational stability and growth. It provides a basis for monitoring progress, and for assessing results and impact. It facilitates new program development. It enables an organization to look into the future in an orderly and systematic way. From a governance perspective, it enables the Board to set policies and goals to guide the organization, and provides a clear focus to the Executive Director and staff for program implementation and agency management. Most organizations understand the need for annual program objectives and a program-focused work plan. Funders require them, and they provide a basis for setting priorities, organizing work, and assessing progress. A growing number of Hispanic communitybased organizations go beyond funder requirements to develop annual objectives and operating plans which also include a systematic plan for resource development, organizational development, and in some cases Board development. Most groups find it practical to define objectives for a 12-month period, and to design strategies and programs to meet them. Longer-range planning – planning beyond the next year or two – often seems more difficult and less......

Words: 5567 - Pages: 23

Strategic Planning

...Final Project Running Head: FINAL PROJECT Strategic planning helps educational organizations plan a path for the achievement of its goals. The planning process should begin with an internal review of the organizations current operations and identifying what areas are in need of improvement. Once the internal review is complete, additional planning involves identifying the results the organization wants to achieve and establishing the next steps necessary to reach the intended goals. These goals or factors can range from: finances, public relations, policy development, personnel recruitment or overall strategic planning in light of student performance. This strategic plan will focus on the financial aspects of an organizations plan. Establishing and implementing effective financial policies are fundamental in an educational organizations success. One essential component of a strategic plan is the establishment of financial policies and procedures. Financial policies are the rules that govern the financial decisions making process of an organization. Educational organizations adopt these policies and follow them to guide them when making financial decisions. Upon adoption of the organizations financial policies, the organizations financial decisions making process is simplified, because the institutions governing body has already developed the financial policies needed to make important decisions. Many times financial policies result from "past experiences." These......

Words: 1138 - Pages: 5

Book Review: John Ehle’s Trail of Tears: the Rise and Fall of the Cherokee Nation

...Book Review: John Ehle’s Trail of Tears: The Rise and Fall of the Cherokee Nation The book Trail of Tears: The Rise and Fall of the Cherokee Nation by John Ehle is a book about the Cherokee Indians and the suffering they endured during the late 1830s. Ehle wrote a book that was more than just a documentation of what happened on the Trail of Tears; he wrote a detailed documentation of Native American history. It centered more around the Cherokees than any other textbook could considering it helped visualize who the Cherokees were as people and not what they went through during such a political time period. Ehle used an abundance of historical facts to convey the Cherokee way of life before and during the Trail of Tears like no author of any textbook ever could. Furthermore, the way Ehle helped the audience envision the Cherokees is what I really enjoyed about this book. Starting out Ehle shapes the Cherokees in a way that helps the audience distinguish that they were not entirely blameless for what actually happened. He helps us take a look into the darker sides of the Cherokee culture we many not read in our textbooks or generally many websites that describe the culture. White Americans are generally blamed for always pushing themselves forward and at the rise to the top stepping over whomever comes their way, but now we see who America was stepping over. Regarding this, Cherokees were not so different from White Americans. Just like many other races the Cherokees held...

Words: 1239 - Pages: 5

Review of "Rise and Fall of Cf"

...The Rise and Fall of Carly Fiorina Introduction Johnson’s article demonstrates why Carly Fiorina failed as an Ethical Leader of the HewlettPackard Company for five years up to 2005. Johnson’s argument concentrates on Fiorina’s role as a moral person rather than as a moral manager and provides considerable behavioural trait failures by Fiorina, supported by plenty of anecdotal evidence to support his claim. Johnson identifies Fiorina’s leadership direction was set by the Board of HP, found that the Board itself had been unethical, and the Board did little to influence or change this direction until the penultimate days of Fiorina’s tenure. The article fails to recognise that Fiorina’s “fall” was ultimately caused by her failure to improve the bottom line. But recognises that her poor performance as an ethical Leader had left her without sufficient support to allow her to complete her radical changes. The ethical Leader construct used here, could be considered to be inadequate to comprehensively assess Fiorina’s leadership, and highlights a need for a more integrated construct/s covering commonly shared behaviours. This essay discusses the addition of change-oriented leadership behaviour to task-oriented and relationship –oriented leadership constructs to overcome this limitation. Elements of leadership Johnson (p. 188) focusses on Fiorina’s ethical leadership behaviours (Brown , et al., 2005) to justify his judgement that Fiorina was a bad leader of......

Words: 1988 - Pages: 8

Bundy India Rise and Fall

...Most of the automotive and Refrigeration OEMs were importing components from their own subsidiaries located off shore. This definitely added to the cost of manufacturing of products in India. Overtime requirements for local made ancilliaries started showing a rise and this had spurted a growth in small scale organisations which were entering component manufacturing. Government was showing an interest in all sectors with their liberalisation and globalisation policies being implemented across the board. The changing industrial policies and opening up of sectors for private participation was heralding a boom in the Indian economy as a whole. With an economy beaconing nothing less than a rate of growth expected to go way beyond the traditional Hindu rate of 3%, Bundy was surprisingly not cashing in on the opportunity. The officials based out of UK were getting concerned about the downslide of its Indian subsidiary. They were almost groping in the dark for some kind of support. The sales numbers were scary, showing a drop every fiscal year. 1997 was a threshold year for Bundy when the organization started implementing change management. Strategic change usually involves a series of transition steps. Bundy had taken a strategic decision in 1997 to get out of the existing traditional system of functioning, and dramatically changed its mission, vision, goals, culture, structure and of course the most important part of any organization, its leadership. Without doubt, changing the......

Words: 4141 - Pages: 17

Strategic Planning

...Strategic Planning OVERVIEW Brief description This toolkit provides a model for taking an organisation through a strategic planning process. It covers planning to do strategic planning, covering the background issues that need to inform or direct the strategic planning process, and then defining the strategic framework for the project or organisation activities. It is this strategic framework that gives the activities coherence and direction. We have included practical exercises to use during a strategic planning process. The toolkit expands on the short introduction to strategic planning in the toolkit on Overview of Planning. Why have a detailed toolkit on strategic planning? Strategic planning is the core of the work of an organisation. Without a strategic framework you don’t know where you are going or why you are going there. So, then, it doesn’t really matter how you get there! This toolkit offers you a way to do detailed strategic planning. You can replicate the method in any organisation or project that needs to do strategic planning. Another toolkit in the CIVICUS toolkits project deals with an Overview of Planning. That toolkit will help you see how strategic planning fits into the overall planning process. The toolkit on Action Planning will help you take the process further. The toolkit on Monitoring and Evaluation will help you to expand on the process of impact evaluation. You do strategic planning to help your project or organisation make a significant......

Words: 13862 - Pages: 56