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Business Strategy

Nova Moda is a medium sized business, it has just opened a new outlet in Tower road Sliema, though in its first week of opening, its store traffic and sales were low.

It has been identified, that Mr. Smith (Owner, and managing director) had no business plan, neither a clear vision upon were he would like to position his business on the market. His only motivation was that a friend of his, opened a similar venture in Valletta, and was doing quite well.

Through out this report, Mr. Smith may find the true meaning and process of strategic planning, an explanation of the role and the setting of objectives in the planning process, and the strengths and weaknesses of the classical/rational, incremental and emergent approaches to strategy.

Strategic Planning

A manager within an organisation may have various functions to meet. A few are:

• Meetings,
• Delegation,
• Control,
• Decision making,
• Leading,
• Planning,
• Organising activities.

In other words, a manager:

• Plans activities to reach strategies,
• Organizes resources to reach strategies,
• Motivates employees to work towards a strategy, and
• Controls activities to make sure that strategies are met.

Planning

Planning is an important factor for an organisation. By planning, one may identify:

• What to do?
• How to do it?
• When to do it?
• Who is to do it?

Though planning one may: set a vision of direction for the future, it may also help the organisation in decision making, it may help to allocate resources, and allocate resources effectively and efficiently, it eliminates the risks of uncertainty, it controls (planning serves in order to remain focused) and it helps the organisation to obtain a higher profit.

Planning is considered as an important factor for an organisation, even small organisations such as Nova Moda needs planning. A few advantages of planning are:

 Resources may be allocated efficiently and effectively.
 Higher...