Unpopularity in the 1970s
Strategic planning became unpopular in the 1970s and the 1980s because it essentially failed. Companies listened to management consultants plot strategy based on a formula. They failed to really analyze what is on the ground so their strategic recommendations did not work. These companies were beaten at the game by other companies who were more agile than those weighted down by strategies. Strategic planning transformed them into lumbering behemoths that could not adapt to the changing times. In the end, they had to reengineer themselves in order to be competitive again.
The Comeback
Operational efficiency did not make a firm distinct enough to enjoy competitive advantage, which is an outcome of a strategic planning. Furthermore, the 1990s was the era when technology started to matter in how a business is run. This required massive capital investment, making people nervous. Strategic planning was a process that allow decision makers to feel confident that they were getting it right.
Definition of Terms
Business ecosystem refers to a sphere of organizations that part of delivery of a specific product or service either through rivalry or through working together. Each organization within that sphere is constantly affecting and is affected by the others, making adaptability a necessity (Kelly and Booth, 2004). Core competencies are the firm capabilities central to what the business is all about. These are factors that can be leveraged because they are unique to the company. Harnessing core competencies results in competitive advantage (Kte'pi, 2015). Finally, strategic intent is the actual articulation and declaration where the company is heading and the course it will taking in the short term and in the long run (Kelly and Booth, 2004).
Strategic Planning in 2015
If strategic planning made a comeback in the 1990s because of technology, then it has evolved over the last twenty years with the pace of technological advancements. Consumer behave much differently now because technology is embedded in every activity. With bid data being a prominent fixture in the business world, strategic decision-making must now be data driven. Organization that fail to figure out and use data to their advantage will be left behind
Works Cited:
Kelly, Louise, and Chris Booth. "Business Ecosystem." Dictionary of Strategy: Strategic Management A-Z. Thousand Oaks, CA: SAGE Publications, Inc., 2004. 18. SAGE knowledge. Web. 19 June 2015.
Kte'pi, Bill. "Core Competencies." Green Business: An A-to-Z Guide. Ed. Nevin Cohen, and Paul Robbins. Thousand Oaks, CA: SAGE Publications, Inc., 2011. 108-11. SAGE knowledge.Web. The SAGE References Series on Green Society: Toward a Sustainable Future. 19 June 2015.
“Strategic Planning”. Business Week, 14 June 1997. Web. 19 June 2015.
