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The Strategic Process Jory M. White MBA Business Strategy 5006 10/15/18

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The Strategic Process

Introduction Strategy, according to Rothaermel (2017), "is a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors." In the business world, some companies succeed and some companies fail, but what factor separates the two? Developing a solid strategic plan that sustains inevitable change is the difference between success and failure. Successful businesses develop an effective strategy that includes their vision, mission, goals, and purpose (Reddy, 2018). Amazon, Nike, Intel, and Apple are businesses with effective strategies that results in having a competitive advantage in their environment. Businesses that understand the key components in a strategic framework will have a clear focus and sense of direction, leading to well-informed decisions that will ensure their long-term success. Key Components of a Strategic Framework Analysis, formulation, and implementation are commonly known as the AFI framework. This strategic framework is essential for a company to obtain a clear advantage over competitors and to thrive in its selected industry. Understanding these three key elements will allow for the development of an effective strategy that can ensure a company's success. Without having a clear understanding of this framework, it becomes increasingly difficult for a company to incorporate successful strategic management practices (Rothaermel, 2017). An organization needs to analyze the impact challenges could have on their outside and inside operations in order to develop an effective strategy. Once the challenges are clear, developing a plan to address those challenges is the next step in the framework. Formulating a plan that incorporates the company’s vision and values is the backbone to a strong strategy. When developing a strategy, it is important to

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remember the priorities and involve the employees as well. Not informing the employees of the plan can lead to a loss of purpose and a decline in work productivity (Rothaermel, 2017). Having a breakdown of the internal operations before having the opportunity to develop a strategy is a recipe for disaster. Once the planned is formed, it is time to implement this plan into the company's operations. Taking the necessary action to ensure all employees understand their role in the new plan will improve performance and increase the longevity of the company. The AFI framework is a vital tool that when used properly can keep a company agile and competitive. Value of A Strategic Planning Framework Long-Term Success Using a strategic planning framework will not lead to overnight success, instead, using a strategic planning framework helps to develop and implement strategies for the long haul. A company must be aware of their vision, goals, consumers, and competition to ensure their growth in the future. Designing a strategy that addresses all these points while also adapting to changing environments is vital to the long-term success of a business (Jinks, 2016). The AFI framework can assist companies in creating a dominant strategy that identifies clear objectives. Without understanding the value of a strategic planning framework, crafting an effective strategy becomes increasingly difficult. Ultimately, following a strategic planning framework will enhance decision-making abilities and improve company performance (Rothaermel, 2017). Competitive Advantage Thriving as a business requires being a fierce competitor and finding areas where potential advantages exist. Sustaining a competitive advantage requires understanding the different consumer needs, and being agile in a changing world. According to Ghemawat (1986), considering multiple advantages rather than just one creates a higher chance for sustainability.

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This is where the value of a strategic framework comes into play. By using a strategic framework to develop a strategy that exploits multiple advantages and addresses consumer needs gaining the competitive edge becomes simplified. In other words, designing a strategy that is meant to compete in one way but has the flexibility to compete in other ways as well, will allow for a competitive advantage in the long run (Ghemawat, 1986). The Role of Leadership in The Strategic Planning Process Being a leader in today's business world requires a wide range of abilities. Leaders need to be focused on their vision and influence others to support this vision. Leaders have an ethical duty to embody the core values of the company, and they must influence others to do the same. Values drive action, and they heavily influence the strategic planning process. When overwhelming challenges face an organization, leaders need to provide guidance and engage in strategic thinking. Leaders help to establish attainable organizational goals and set guidelines for a strategic position (Fuller & Green, 2005). Leaders have an ethical responsibility to promote group success as the only way to achieve organizational goals, rather than self-success. Leadership is needed in planning the strategy as well as in effectively communicating the strategy to the employees and the customers. Leaders need to evaluate how to address specific challenges in order to keep the objectives clear. Lastly, leadership is needed for successful implementation of the strategy and to ensure long-term success. Strategic leaders know what actions to take in order to keep the strategy aligned with the company direction and values. Without proper action that aligns with the company's direction and values, keeping a strategic plan in place is next to impossible (Fuller & Green, 2005). A leader must remember that strategies need to be able to adapt in a volatile

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market. Leaders need to update their company's strategy consistently to ensure growth and to stay competitive. Conclusion Understanding the key components in the strategic planning framework and how to manipulate them to build an effective strategy is the determining factor between success and failure. Good strategies are constructed for growth and influenced by vision and values. The business world is unpredictable, and new challenges appear every day. The ability to make precise decisions based on a strategy will determine the longevity of an organization. As the business world becomes more technologically advanced, companies will need to reinvent themselves to stay relevant and abundant. Having the best product, most extensive customer base, and a greater amount of capital than other businesses means nothing if the company cannot adapt (Reeves & Deimler, 2011). Creating strategies that can adapt to changes will not only give a business a competitive advantage but will lead to long-term success. Leadership plays a critical role in the development of a strategy. Leaders need to design strategies that keep objectives clear and they need to make sure that everyone is on board with the plan. Leaders that communicate the strategy effectively and are innovative in their approach will gain support to keep the organization agile in an unpredictable world.

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References Fuller, J. N., & Green, J. C. (2005). The Leader’s Role in Strategy. Graziadio Business Review, 8. Retrieved from https://gbr.pepperdine.edu/2010/08/the-leaders-role-in-strategy/

Ghemawat, P. (1986). Sustainable Advantage. Harvard Business Review. Retrieved from https://hbr.org/1986/09/sustainable-advantage

Jinks, P. (2016). Out Of Order: A Better Way To Approach The Strategic Planning Process. Forbes. Retrieved fromhttps://www.forbes.com/sites/forbescoachescouncil/2016/10/19/out-of-order-abetter-way-to-approach-the-strategic-planning-process/#4c6d630840fe

Reddy, N. (2018). Want A Successful Business? Build An Effective Strategy. Forbes. Retrieved from https://www.forbes.com/sites/forbescoachescouncil/2018/02/12/want-asuccessful-

business-build-an-effective-strategy/#77def0cd69bf

Reeves, M., & Deimler, M. (2011). Adaptability: The New Competitive Advantage. Harvard Business Review. Retrieved from https://hbr.org/2011/07/adaptability-the-newcompetitive-advantage

Rothaermel, F. (2017). Strategic management concepts (3rd ed.). New York, NY: McGraw-Hill. Chapter 1, "What is Strategy?" Chapter 1 PowerPoint....