Strategic Planning Models in Businesses

 
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Strategic Planning Models in Businesses
Introduction
Strategic planning in business is the pattern of decisions that help any firm’s activities to reveal
the core purposes, objective & resources. The strategic planning also refers the choice of work
the organisation is to follow, with the help of the work it purpose to be and the nature of the
financial & non-financial involvement it intentions to develop its stakeholders & shareholders
(Andrews, 1997). Strategic planning in any organisation also maps out a direction sense for an
organisation’s actions. Porter presented to these forces as the microenvironment, to compare it
with the common term macro environment. They comprise of those powers near to a corporation
that impact its capability to serve its consumers and make income. A modification in any of the
forces generally needs an organisation to review the market. Michael Porter supposed to be one
of the famous management gurus.
Discussion
Canon an electronic company began in Japan with a typical and traditional Japanese business
firm having customer’s satisfaction and profit as its centre of attention while specialising in the
production of business machines, cameras, optical and other electronics. The company was
founded by the first Chief executive officer Gerard in Japan and the father who later recruited a
team of outstanding professionals to support its activities (Hill & Jones, 2007). In less than three
decades of operation, the company assumed leadership role in the electronic market. Thanks to
its innovative focus ideas, huge investment on research and development, good employee’s
retention, and differential focus strategies, Canon innovative ideas and the company’s cost focus
and differentiation strategy earned it that position. Canon case has been analysed using some 
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analytical models.
Canon and Porter’s Five Forces
Porter five forces model was developed as a means assessing the attractiveness (Profit potential)
of different industries. The researcher further stipulates that, with the model, an analyst can
easily identify the sources of competition in an industry or sector. Overall, it has a strong
worldwide base in its major product areas: photocopiers, computer peripherals, computer and
Fax equipment, cameras, video recorders and optical products (Haberberg & Rieple, 2008). Its
long term relationship, innovative ideas, product differentiation and cooperative behaviours
entered into with it suppliers and customers. Its position in the industry sector was greatly
enhanced by the company’s ability to identify the photocopier’s market as an area of growth that
created its competitive position in the sixties with strategic planning and actions channelled
through this direction. This vision was marked by its intentions to catch Xerox through
technological differentiation.
An increase in Canon’s brand equity within these periods acted as some form of insulation
consequently consumer’s propensity to substitute was almost zero; this was insulated by Canon’s
technological prowess innovation that added new product with new functionalities and features
(Hill & Jones, 2007). This created core competences and core products that became cash cow
given Canon a consistent ten years record of profitability. It will be noted that printing was only
one of Canon's areas of competence by the 90s.
Strategic Planning has been on the business scene since 1960 and increasingly, business
managers use it as a way to communicate their vision, maintain a flexible managerial approach 
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and predict future trends thereby creating a competitive edge over time. Haberberg & Rieple,
(2008) argued that, “a well wrought strategic plan helps a business to set priorities and acquire
and allocate the resources needed to achieve its goals”. Consequently, a Strategic Plan can give a
business the opportunity to generate a new sense of purpose and direction. According to (Hill &
Jones, 2007), the Five Forces set the approaches of competition in any industry and at the same
time set pace for understanding a company’s success.
Canon strategic planning was not all about vision, but emphasis was on customer’s satisfaction,
market share and core competencies. While acknowledging the assertion that having the right
Strategic Plan can enable a business to realise its full potential, the assertion here is: How does
Strategic Planning help a business to attain its objectives and consequently differentiate itself
from competition (Haberberg & Rieple, 2008). Here, Canon management has not only used this
to create and lay emphasis on its vision and objectives, but has capitalised on customer’s
satisfaction, and gaining and maintaining market shares coupled with the needs for
differentiation.
Canon and Porters Competitive Advantage
At the most fundamental level, it has repeatedly been argued by (Dobson et al, 2004) that firms
create competitive advantage by doing things in a bette