Strategic Management Plan Essay Sample
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Introduction of TOPIC
CanGo’s strategic management plan is missing. They have basically been using an informal planning process where nothing is written down. A well-documented formal plan allows everyone in a project or business to understand exactly what needs to be done. Too ridged of a plan can hinder a company’s success by reducing their flexibility. CanGo needs to put into action some form of formal strategic management plan for the continued growth of the company. The key to their newest project, online gaming, might benefit using agile development for this project. A well thought out strategic management plan has a formal plan that is a clear path, is well defined as to where the company is and where it wants to. CanGo’s strategic management plan seems to be an informal plan where very little or anything is written down. The plans for the company are in the heads of a few people. “This approach means that members of the organization are more or less following the lead of those management members who does the informal planning, and their tasks, responsibilities and priorities can be changed rapidly to accommodate urgent issues.” (Coetzee, 2011) Management should engage in formal planning for four (4) reasons:
1.Planning provides direction 2.Reduces the impact of change 3.Minimize
4.Establishes objectives or standards that facilitate control Some critics challenge the basic assumptions of planning. The major arguments are as follows: 1.Planning may create rigidity
2.Plans can’t be developed for a dynamic environment
3.Formal plans can’t replace intuition and creativity
4.Planning focuses manager’s attention on today’s competition, not on tomorrow’s survival 5.Formal planning reinforces success, which may lead to failure (Coetzee, 2011) A new type of strategic development that is being used in many IT companies, is called agile development. “Agile development is based on iterative development steps, where requirements and solutions are constantly reviewed and evolved throughout the lifecycle of the project.” (Coetzee, 2011) Scrum is a version of agile development that starts by identifying the vision of the project. From the vision a product backlog is created. A product backlog is a prioritized list of all the features or changes required. The product backlog is estimated and split into sprints, iterative development cycles. At the end of the sprint a potential shippable, ready for implementation is delivered to the owner for evaluation.
At the end of each sprint the owner has the opportunity to change any or the entire product. Another part of using agile development is the team getting together for daily 15 minute standups to discuss what they are doing and if there are any issues. CanGo’s needs to first and foremost create a formal strategic management plan for the overall growth and future of the company. Venturing into the online gaming industry without a formal plan for the company can be a dangerous venture. Agile development is a great way for CanGo to implement their new online game project while management starts the process of formally creating a formal strategic plan for the whole company.
Coetzee, L. (2011, January 26). Does formal planning reduce flexibility and hinder success? Retrieved from Swat Blog: http://www.mihswat.com/2011/01/26/does-formal-planning-reduce-flexibility-and-hinder-success/