Organization Strategic Planning Theories

Organization Strategic Planning Theories
Strategic planning refers to the systematic process of creating a vision of the desired future state, and turning this vision into widely defined objectives or goals, and outlining the procedure towards attaining them. Strategic planning is one of the fundamental aspects of modern business and helps determine the scope and direction of a business organization in the long run while allocating resources on the dynamic nature of the business environment regarding the market and customers. With the onset of globalization, each business has the challenge to draw clear and objective strategic business plans with the aim of diversifying products or services or risk being out of business. Strategic planning also induces a change of operational activities. Strategic plans are essential route maps for propelling a business from the current position to the next level.
Strategic Planning has evolved over the years to be one of the fundamental parts of organizations. Furthermore, several theories have been developed by scholars to contribute to and explain the main components of strategic planning. In his five functions of management, Henry Fayol one of the major contributors to organization theory and practice included planning as one of the essential functions of management alongside organizing, control, coordination, and command. The paper presents an application of Sun Tzu’s principles in his documentary the ‘Art of War’ on organizational theories developed by Michael Porter.

The paper discusses how the principles described in the ‘Art of War’ relates to Porter’s forces of business strategy models.

Sun Tzu’s Principles and Michael Porter’s Art of Business
Porter’s Generic Strategy against competition is one of the most widely used strategic planning methods in business. Porter suggested that when an organization faces stiff competition and it is operating in a fairly competitive market, the firm that will survive is the one that claims the larger share of the market compared to the rest of the industry players. He proposed that differentiation, cost leadership, and cost leadership can give a firm the competitive edge essential to outperform other competitors. Differentiation, the first strategy, requires that the firm seeks superiority by being as unique as possible within the industry regarding products and services. In the second strategy, cost leadership, Porter asserted that having a larger share of the market, quoting the lowest prices, and attaining a higher profit margin than other industry players can be achieved by the firm that provides goods and services at the lowest cost in the market. Finally, the focus planning strategy requires that a firm targets a specific segment of the market or geographical location where it can provide service clients better than producers in full-line production. Porter also suggested that it is of prudence to employ one of these strategies to avoid confusion that can result into underachievement (Brim, 2013).
Both the ‘Art of War’ and Porter’s ideas on strategic planning deal with competition, they emphasize how essential planning is when facing competition. Porter claimed that the organization of the planning process is the link between implementing and thinking. However, in the ‘Art of War,’ Sun Tzu’s strategies cater for the unpredictable operational factors and the change of planned courses of action as part of the execution. The aspects presented here suggests that while Porter’s strategies separate thinking and action, certain aspects Sun Tzu’s strategy like including alternative courses of action in the process of execution can be employed in corporate strategies (Bul-Godley, 2013).
Michael Porter lists differentiation as one of the main strategies that can be used to outdo the competition. The consolidation and securing of available resources and employing them effectively to achieve the highest possible return is very essential. According to Porter, the market position occupied by a firm can determine its success. On the other hand Sun Tzu in the ‘Art of War’ states that “One May Know how to conquer without being able to do it” (China Exploration, 2013) a reminder of how tactical positioning is very crucial in winning. The statement by Sun Tzu reminds firms to gather their resources, be efficient, and employ the least-cost before bracing a competition battle. Sun Tzu stresses that before a duel or any risky step, it is important that one gets fail-safes or insurance. The aspect of insurance stressed by Sun Tzu before going to battle is also important for all firms in any industry. Furthermore, Porter points out that a business should select their most comfortable position in the industry and focus on that line to mitigate competition. Sun Tzu, on the other hand, states that “Do not repeat the tactics which have gained you one victory, but let your methods be regulated by the infinite variety of circumstances.” (China Exploration, 2013). Sun Tzu’s statement gives the implication that diversification is also crucial in business. Even though Porter stresses uniqueness in one line of production, Sun Tzu’s idea of diversification can be used in situations where an organization’s point of strength is dominated by several players or is already monopolized by a single player.
Conclusion
The ‘Art of War’ is a very enlightening reading. The strategies described by Sun Tzu have a wide range of applications ranging from military to business. With a focus on organizational strategic theories, Sun Tzu highlights various aspects of strategic planning that relate to a variety of theories proposed by scholars for business application. A comparison between Porter’s and Sun Tzu’s strategies provides similarities; furthermore, some of the strategies exploited Sun Tzu in the ‘Art of War’ gives more comprehensive and diverse strategies relevant to strategic business planning today. While porter’s strategies stress focus, differentiation, and cost leadership, Sun Tzu supports these aspects but provides an opportunity for diversification in situations deemed necessary.
References
Brim, D. (2013). 7 Powerful Lessons Sun Tzu can teach you about Strategy | David Brim. Filled to the Brim. Retrieved 2 December 2016, from http://www.davidbrim.com/sun-tzu-lessons-on-strategy/Bul-Godley, E. (2013). The Art of War – a 13 point plan to Mastering Business Strategy. Tweakyourbiz.com. Retrieved 2 December 2016, from http://tweakyourbiz.com/global/2013/01/14/why-wall-street-loves-the-art-of-war-a-13-point-plan-to-mastering-business-strategy/China Exploration,. (2013). Documentary: The Art of War Sun Tsu. Retrieved from https://www.youtube.com/watch?v=6ZHXrJuu3TI