You are part of a group of senior managers working for a fast-growing computer s

Question

You are part of a group of senior managers working for a fast-growing computer software company. Your product allows users to play interactive role-playing games over the Internet. In the past 3 years, your company has gone from being a start-up enterprise with 10 employees and no revenues to a company with 250 employees and revenues of $60 million. It has been growing so rapidly that you have not had time to create a strategic plan, but now members of the board of directors are telling you that they want to see a plan, and they want the plan to drive decision making and resource allocation at the company. They want you to design a planning process that will have the following attributes:

1. It will be democratic, involving as many key employees as possible in the process.
2. It will help to build a sense of shared vision within the company about how to continue to grow rapidly.
3. It will lead to the generation of three to five key strategies for the company.
4. It will drive the formulation of detailed action plans, and these plans will be subsequently linked to the company’s annual operating budget. Design a planning process to present to your board of directors.

Explanation / Answer

Planning is a method to decide whether we have to move from our current position in business or any other venture.

We shall utilize stratgic planning in this connection which will aim to immediate competitors analysis as well as long term orientation to the company.  

Our shared vision statement will be :

To become no. 1 computer software making company in the world till the year 2025.

Our important  business objectives will be :

1) To expand the business ( expansion strategy) across the country as well as entered into foreign markets.

2) To collect fund enormously so that growth can be ensured to our rapid branch opening and serving at more locations.

3) To create a parallel virtual organization which will tap global business opportunities with low cost business strategy.

4) To hire a competent talent pool who will provide competitive edge in achievement of functional tasks like human resources, marketing, operations and financial management.

5) To implement a unique business model which translates our vision into reality.

6) Our aim will be to collect $ 100 million fund in next 1 year of operations from the investors.

7) We shall even choose to operate in different portfolios like producing hardware products and services organization to assist global enterprises.  

Our stratgic planning process will include the following steps:

1) Environmental scanning:

Both internal strengths and weaknesses as well as external threats and opportunities will be analyzed. Even , a macro analysis for the factors political, economical, social , technological, environmental and legal should be done. It will be complete when industry analysis will be done.

2) Formulation of stratgic intent:

We shall have define our mission and short term objectives in line with vision.

3) Implementation of the strategies:

We shall formulate strategies for corporate level , mid management level and operational level.

4) Setting performance standards: Employee's will be given target as per MBO rule. Then , their actual performance will be measured against the set standards.

5) Organizational performance against benchmark from immediate competitors and tools like Balanced scorecard.

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