Description
Introduction
Successful organizations know the importance of developing a strategic plan for their company, carrying it out, and being willing to amend it when circumstances change. Rumelt (2011) stated that a strategy is an educated guess of how the world works; the strategy is determined by its success, not its acceptability to a council of philosophers or a board of editors. There is no scientific logic behind an exceptional strategy, however, a keen sense of current and future events is extremely important and can improve the strategic plan’s outcome for the organization significantly.
Process: Business Strategy Development
The process of developing a business strategy includes three steps, developing a strategic vision, mission, and values; setting objectives; and crafting a strategy to achieve the objectives and move the company along the intended path (Gamble et al., 2024). This strategy must align with the organization’s product or service, demonstrate the direction the company’s mission and vision statements strive for, and be clearly understood by all parties concerned. Putri et al. (2024) stated that “business strategies are created to achieve long-term goals so that companies can achieve sustainable competitive advantages” (p. 133). Following the developing process, the strategy must be implemented and executed, then evaluated to determine if corrective actions are required. Managers will need to adjust these decisions by tweaking them slightly, modifying them extensively, or completely dismissing selected strategic decisions made. Gamble et al. (2024) stated that it is not unusual for a company to find that one or more aspects of its strategy implementation and execution are not going as intended and need corrective adjustments. Even when the strategic decisions appear to be working as intended, they will need continuous review and adjusting to keep the organization performing at maximum efficiency. Rumelt (2011) stated that strategy embodies an approach to overcoming difficulty by identifying the difficulties and obstacles to give a clearer picture of the pattern of existing and possible strategies. Only then can the organization become comfortable with its given strategies to increase revenue and be successful.
Strategic Thinking: Key Decisions
In the organization’s strategic thinking, the decisions it makes are extremely important throughout the entire organization. Gamble et al. (2024) stated that a company’s overall strategy is a collection of strategic initiatives and actions devised by managers up and down the whole organizational hierarchy. When developing a winning strategy, an organization’s strategy must fit the company’s external and internal situation, build sustainable competitive advantage, and improve organizational performance (Gamble et al., 2024). However, the organization’s key decisions can make or break the company’s performance and management can struggle to change these decisions to better align with circumstances affecting these decisions. Srivastava and D’Souza (2021) stated that “the availability of a valid and reliable instrument to measure strategic thinking in an organizational context will open many new research opportunities for scholars in the field of management” (p. 106). This measurement will improve the success rate of key strategic decisions and guide management’s thinking to increase sustainability and revenue for the organization to further build confidence in the company’s shareholders.
Decision Model
There are many decision models for organizations to choose from (Krogerus and Tschappeler (2017) give 50 of them in The Decision Book); however, the models must be appropriate for the circumstances encountered by the organization. The SWOT (Strengths, Weaknesses Opportunities, and Threats) analysis is one of the most important models used in decision-making; every organization should include this in all decisions. This identifies an organization’s strengths, weaknesses, opportunities, and threats, which was developed from the result of a Stanford University study to help those involved in a project to gain a clearer understanding of it (Krogerus & Tschappeler, 2017). The SWOT analysis has become one of the predominant models for business wanting to gain a competitive advantage over its competition. Thinking out of the box is another model used to help organizations innovate and discover new products, techniques, and processes to soar beyond the competition and challenge the capabilities of their employees. Innovative ideas typically emerge when organizations leave their comfort zone or when they break the rules (Krogerus & Tschappeler, 2017). These two models will aid in the strategy development process due to knowing the capabilities of the organizations and pushing past the comfort zone to create and do something unimaginable.
Conclusion
To stay competitive within its industry, an organization must create a strategic plan to guide them to where they want to go to be successful. In developing this strategic plan, organizations will determine the best approach to guide them toward this strategic decision using specific models and an educated guess of how current and future conditions will affect these decisions. Strategic development brings order to chaos and draws out creative potential in the organization’s employees, thus following God’s pattern of creative culture development (Keller & Alsdorf, 2012). Therefore, this creative potential will foster innovation within the company and increase its likelihood of success. Proverbs 8:12 states, “I, wisdom, dwell with prudence, and I find knowledge and discretion” (English Standard Bible, 2016). This strategic plan for the organization will give it the wisdom and the knowledge to succeed and increase revenues for its investors.
Appendix
Annotated Bibliography
Putri, B. B., Nur Perwitasari, S. D., & Pratopo, L. H. (2024). Business development strategy of “Healthfull” brand products using SWOT-AHP analyses. Journal of Management & Agribusiness, 21(1), 132–144. https://doi.org/10.17358/jma.21.1.132Links to an external site.
Summary of Key Points
As consumers become more aware of health-conscious foods and snacks that include fruits and vegetables, they look for alternative products to replace junk foods and other unhealthy food products. Putri, Nur Perwitasari, and Pratopo performed research to determine alternative strategies and choose strategic priorities for the business development strategy of Healthfull brand products using qualitative and quantitative research techniques.
Evaluation of the Quality of the Publication
The article titled “Business Development Strategy of “Healthfull” Brand Products Using SWOT-AHP Analyses” was featured in the Journal of Management & Agribusiness Vol. 21 on March 2024. It is classified as a peer-reviewed article and was accepted for publication on February 27, 2024.
Evaluation of the Quality of the Author(s)
Belia Berliani Putri obtained a Master of Science from Agroindustrial Technology, Padjadjaran University, and has professional experience in Business Development, Marketing, and Project Management. She is exploring her passion in sustainability development and agriculture fields.
Sophia Dwiratna Nur Perwitasari works at the Department of Agriculture Engineering and Biosystem, Universitas Padjadjaran. She performs research in Environmental Science, Water Resources, and Irrigation & Water Management.
Lukito Hasta Pratopo is head of the Division for Environment Technology & Biodiversity at the Ministry of Research and Technology. He is a graduate of Hiroshima University, Japan, and lives in Cibubur, Jawa Barat, Indonesia.
Where this fits into the discussion
This article fits into the discussion by utilizing the SWOT matrix resulting in eight alternative business development strategies formulated in their research of Healthfull brand products. The research performed within the article provided a clear sense of what is needed to develop a strategic plan for the product. The research results are to create educational content to increase consumer awareness and to prioritize its marketing strategy to increase sales figures.
Srivastava, S., & D’Souza, D. (2021). Measuring strategic thinking in organizations. Journal of Managerial Issues, 33(1), 90–111.
Summary of Key Points
Strategic decisions do not always have the outcome that managers and CEOs would like to have; however, if these decisions are measured beforehand, then these decisions would have a better likelihood of working. Srivastava and D’Souza have determined a 14-item scale to measure this strategic thinking to develop, evaluate, and validate an instrument scholars can use to measure strategic decisions in an organizational context. These measurements will assist managers in achieving the desired outcomes for the organization.
Evaluation of the Quality of the Publication
The article by Srivastava and D’Souza titled “Measuring Strategic Thinking in Organizations” was published in the Journal of Managerial Issues in the Spring of 2021. The journal is published quarterly by Pittsburg State University and disseminates the results of new and original scholarly research to a broad audience consisting of university faculty and administrators, business executives, consultants, employees, and government managers (JSTOR, 2024).
Evaluation of the Quality of the Author(s)
Saurabh Srivastava is the Assistant Professor of Management at Texas A&M University-Commerce. His primary research revolves around various aspects that influence firm performance, primarily individual and organizational level capabilities. He believes research questions are not inherently discipline-specific; therefore, he chooses to conduct interdisciplinary research.
Derrick D’Souza is a Professor of Management at the University of North Texas. Dr. D’Souza has received research and teaching awards, and his research has appeared in the Journal of Operations Management, Production and Operations Management, Information Strategy, Journal of Managerial Issues, Entrepreneurship Theory and Practice, and Institute for Supply Management, among others.
Where this fits into the discussion
This article fits into the discussion by evaluating the strategic decision before it is executed, therefore, giving it a higher chance of being successful. When these strategic decisions are measurable, it can assist management in avoiding decisions that are not aligned with the organization, thus avoiding huge corrective adjustments in the future. This will allow organizations to meet their targets sooner than otherwise without these measurements.