In the corporate world, every organization has its vision and mission, which helps all the stakeholders identify the company’s goals and objectives. To ensure that all members are aware of the targets, organizational leaders thus define their objectives through strategic planning. These plans are made after the management has conducted a thorough analysis of the company and its environment, ensuring that they meet all standards required to achieve its goals. They will then suggest or implement steps to help the company realize its goals. Strategic planning could be a mid or long-term strategy normally ranging from 3-to 5 years, although it can go longer than the stated dates depending on the objectives and company structure. Although all businesses have different goals depending on their design and fields, thorough research and analysis are necessary to ensure a better plan is achieved as the product of strategic planning.
Since the strategic planning is done after a thorough research analysis of the company, there is always a process involved. Strategic planning starts by firstly identifying the organization’s current strategic position (Landreth Grau, 2021). Next, the company analyses the existing plan, especially the long-term and achievement goals, then considers it during the adjusting to suit the possible strategic plan. Secondly, the planners will prioritize objectives and initiatives that will contribute to or support the company in achieving its goals by choosing the most appropriate and relevant ones. Thirdly, the planners will then develop the plan where they formulate all the steps that will be implemented to ensure the company achieves its goals. Fourthly, the program is then implemented where it is communicated throughout the company to ensure partnership to achieve the goals. Lastly, the plans are subjected to updates after assessment and periodical reviews with the assessment criteria to provide all the steps are accomplished.
Four major parts of corporate planning
The strategic plan is an essential document in a business, and it is often reflected in the plan document or other media. These plans are easily shared and analyzed by the customers, employees, and other stakeholders who play a part in that plan execution so that they may continually work towards the company objectives. This document is preferred because of important information about the company, such as the mission, goals, alignments with short-term goals, and evaluation and revision criteria. The mission will give employees a sense of purpose and direction to value the plan. This mission holds the company values, which are the visioning components. Further, it helps leaders and stakeholders make rational decisions that do not compromise the business.
Plan goals will be targets that are considered achievable, measurable, and specific. They depict the company’s big picture by explaining what it will be doing to achieve its mission and vision (Morciano et al., 2020). Further, it will help the company measure its progress because the plan has assessment criteria in every step. However, these plans must be communicated to all stakeholders, especially the leaders in various departments and employees, to ensure they all execute their tasks under the same assumption about the company goals. This strategy can include the company’s short-term goals showing the company tactical plans that help business leaders assess and make better decisions to help the company achieve its long-term goals.
After the plan has been developed, it has to be implemented; hence, it has to be allocated resources, making it the third important part of the plan. It involves allocating staff, capital, and other resources necessary, such as permits to achieve the desired goal at a given step with precise planning and management (Naamati Schneider, 2020). All leaders from different business units should be involved to determine how the resources are allocated, which will ensure that the value of the entire business is maximized, unlike when teams perform separately.
Lastly, the evaluation and revision allow the management to assess their progress while revising some clauses where possible. While evaluating the plan, there is the identification of strategic tradeoff; however, this part remains difficult for leaders to prioritize their resources (Dennis, 2019). Since all tradeoffs entail some risks, businesses are supposed to balance between the risks and return to ensure the company doesn’t fall off the track in case they fail in some steps.
Plan creation using four significant types of corporate planning
A business plan should consider all the four major types of corporate planning. They include an operational, strategic, tactical, and contingency plan. The operational plan is a guideline for ongoing or single-use activities. The single-use program is commonly considered for single activities which occur once after a given period or for a lifetime. The ongoing operations plan contains rules and guidelines on how company activities are executed daily to ensure that the company meets its objectives. Since the Bobcat organization is a medical facility, there are ongoing operations, especially those dealing with patients and single-use plans, which occur on special occasions such as benchmarking from other hospitals or visits from government officials.
Additionally, the strategic plan creates a foundation under which the company will be laid. This plot explains what the company is serving and what it is expected to do through its mission and purpose statement (Bolland, 2020). It dictates the ethical values of the organizations and helps in decision-making. The tactical plan serves as a supporting plan for the strategic plan. This plan involves the steps and tactics to help the company meet its strategic goals. While the contingency plan is created to ensure the company can handle unexpected events. Normally, there is the possibility of a change of affairs or unanticipated events in the corporate world. If we consider the Bobcat hospital, some unexpected happenings include pandemics and other disease outbreaks.
Thus, a proper hospital business plan must incorporate these four types of business plans. A business plan will always start first by explaining the executive summary, which outlines the company’s mission and vision statement, leadership, and management (Bryson et al., 2017). Secondly, the product and services should be included with the hospital majoring on services, including the prices and how they benefit the consumers. Thirdly it will be the market analysis where it identifies its target audience. Fourthly, the market strategy part will indicate how the hospital will distribute its services and attract more customers than its competitors. Fifthly, financial planning explains the current economic state, strategy, and objection, including the financial statement. Lastly is the budget on how the staff is paid and other expenses.
Lastly, when we consider the financial statements, the leading financial report in a hospital setting includes the working capital ratio, quick ratio, earning per share percentage, and price-earnings ratio. However, considering the Bobcat, the return on assets is low at -11.75%, which indicates the company is recording losses. Furthermore, despite other financial ratios indicating a positive outcome, such as short-term and long-term investment, the company liquidity is low; thus, running this business is risky and needs better financial planning. However, it is important to note that all businesses have different goals depending on their design and fields, thorough research and analysis are necessary to ensure a better plan is achieved as the product of strategic planning.
Bolland, E. J. (2020). Evolution of strategy: Origin, planning, strategic planning and strategic management. Strategizing, 25-48. Web.
Bryson, J. M., Edwards, L. H., & Van Slyke, D. M. (2017). Getting strategic about strategic planning research. Public Management Review, 20(3), 317-339. Web.
Dennis, C. (2019). Strategic planning—a health system operational perspective. Journal of Hospital Management and Health Policy, 3, 32-32. Web.
Landreth Grau, S. (2021). Strategic marketing planning for nonprofit organizations. Marketing for Nonprofit Organizations, 58-84. Web.
Morciano, C., Errico, M. C., Faralli, C., & Minghetti, L. (2020). An analysis of the strategic plan development processes of major public organisations funding health research in nine high-income countries worldwide. Health Research Policy and Systems, 18(1). Web.
Naamati Schneider, L. (2020). Strategic management as adaptation to changes in the ecosystems of public hospitals in Israel. Israel Journal of Health Policy Research, 9(1). Web.