Select a small business that you may want to start. What is strategic
management and planning? Why would a strategic plan be important to the
success of this business? How are the four functions of management relative
to creating and implementing a strategic plan?
If I were to start a small business it would have to be something that I am very familiar or
experienced with, passionate about, and a business that I believed I could be profitable and
successful with. With that said, I may want to open a machine shop because my professional
working experience of 30 plus years has been in the aerospace manufacturing industry.
is defined as the set of decisions and actions that result in the
formulation and implementation of plans designed to achieve a company’s objectives”, (Pearce,
& Robinson, 2009, p. 3). “Strategic planning is the systematic process of envisioning a desired
future, and translating this vision into broadly defined goals or objectives and a sequence of steps
to achieve them” (No Author, 2011).
The importance of a strategic plan to opening a machine shop would be defining the
goals and objectives necessary to be successful. A strategic plan would determine the market the
business was entering, and what the competitive factors are. What the marketing strategy would
be to attract customers. It would determine the resources necessary to open the business
including, labor, equipment, logistical aspects, overhead and management staff requirements.
Strategic planning will also determine financial aspects of the business including owning or
renting the site, raw material costs, consumable costs, maintenance costs, and labor and salary
costs. Because machine shops carry chemicals for various processes Environmental Health and
Safety (EHS) issues and costs would have to be determined and addressed.
The four functions of management, as we have learned in previous classes, are planning,
organizing, leading, and controlling. This is comparative to implementing a strategic plan
because the steps are similar. First the strategic plan must be created, a vision of what the
company wants to be in 5 years. Next the company must organize their resources toward this
vision or goal by assigning the proper personnel. Leading is not the same as managing because
you have to relate a sense of purpose to the team to motivate them to accomplish the tasks
assigned. Controlling is the monitoring phase of the project that identifies whether the goals and
visions were met or not, and if not what actions will be taken to correct the discrepancies.