The importance of strategic planning in times of crisis

The “password” is the market competition. In all activities that seek to make the man will always be competition. In times of crisis this competition becomes brutal and boundless. Are you ready for this?

The “password” is the market competition. In all activities that seek to make the man will always be competition. It will not be necessary to cite Darwin and his famous “Law of Evolution” to confirm the idea of ​​competition as a constant in the life of man. In times of crisis this competition becomes brutal and boundless.

Facing this fierce competition there is only one way to stand out in the market: being better than your competitor. When it comes to a company that situation worsens substantially as it is more concerned with producing than in making a Strategic Plan that will bring efficiency.

This important tool for control of company goals, the Strategic Planning takes time, which is usually scarce thing for the administrator because it will be more concerned with operational decisions at the expense of planning a solid foundation for the company’s future. This plan aims to guide the routes to be followed by the company in order to avoid hasty decisions, and often erroneous, about the company’s future.

The word strategy comes from ancient Greek and means the quality or ability of the general. Can be considered as a set of actions to be developed in order to give an advantage over the enemy. The strategy is “positive” difference that the participant has over the others.

After being widely used in the military, the techniques of strategic organization came to business. Just like in the military context, the organizational environment and how will better the strategy adopted by the company. The company as less productive unit in the market must be aware of the constant changes occurring in the external environment and prepare adequately address the challenges inherent to market developments.

It is this sense that we seek to understand among the various options to be chosen the best one to be applied on the context of the company. The business strategy is the set of resources that an organization uses to achieve objectives. This process involves decisions that define products and services to specific customers and markets, and the company’s position in relation to its competitors. At this point, the strategy has been presented as fundamental to the smooth running of the company as it is she who has the “competitive advantage” to the company item. This term is nothing more than “establish an appropriate target, which is based on two factors: consistent objectives and understanding of the business.” These objectives are deemed necessary for the company to achieve superior to the others and thus stand out in the competitive market performance.

The activities developed by the company are the result of management decisions taken previously. The planning process is a process of making interdependent decisions, these decisions seeking to lead the company to a desired future state. As there are no “crystal ball” to predict the future behavior of the economy is necessary to mark the statistical decision-making methods. Therefore it is essential to do advance planning of actions to be taken, exactly as required by the process of developing the Strategic Plan. That’s where the business ceases to be used empiricism and shall seek grounding in scientific management (so widespread in colleges and so little used in day-to-day) to make choices.

If company works without planning, the actions taken by managers appear only as palliative measures, ie, “to put out the fire.” As a result, actions are limited because they act on the symptoms and not the basic underpinnings of the problems presented. Therefore, especially in times of crisis, the entrepreneur should not take unnecessary risks and you should know that the development of a consistent and concise planning guide aims attitudes to be developed by the company throughout the management and can be the difference in a company’s market highly competitive.

Source: www.administradores.com.br

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