Introduction
Strategic planning is formulated to attain the organization’s overall goals, such as the market restrictions, the demand from the stakeholders, and the accounting. A strategic plan is concerned with the organization’s future (Lo & Sugiarto, 2021). Thus for any business to remain vital and successful, it has to formulate a strategic plan. The strategic plan may involve some risks, but it is important to get to know where the business is growing and how it can mitigate the risks faced.
Benefits of Strategic Planning
Organizations are able to be proactive instead of reactive as they can concentrate on seeing the future, and they can prepare well. Thus, through the planning, the companies can see the uncertainties and the unfavorable scenarios before they can occur and take measures to stop them (Lo & SugiarTO, 2021). Having a strong strategic plan, companies are able to react to the situations at hand. Thus, they can manage to be in the business, be up to the current trends, and be a step ahead in terms of the competition.
(Assist the organization to be proactive instead of reactive)
There is a sense of direction, and the company becomes aware of the direction it should lead into, and it is able to set up realistic goals and objectives to enhance the mission and the vision. A strategic plan leads to a foundation for an organization to grow. The organization can also check on its success to appreciate and compensate the employees and come up with the best boundaries that enhance decision-making that assist the organization to continue carrying forward (Lo & Sugiarto, 2021).
(The organization becomes aware of the direction to be taken)
It assists the business to be more stable and durable as some of the businesses can boom in a year and be in debt in the next year. Due to the changing world markets and industries, those companies without strong foundations cannot foresee and focus on how they can go beyond the wave. From the reports, it has been studied that one among three big companies is expected not to be in the market for the next five years (Lo & Sugiarto, 2021). But those organizations that have formulated strong strategic plans will survive.
(The durability and the organization stability is enhanced)
Nike Company
Nike, Inc. assists to make the best outfits for the athletes. The company ensures to employ the people who can enhance the growth of the companies vision (Lo & Sugiarto, 2021). Creating a culture for a thriving company ensures using diversity and rewarding the imagination. Hence, the brand looks for the people with a vision, leaders, and achievers (Lo & Sugiarto, 2021). Thus, the people are given a chance to bring their skills, challenges, and passion.
The Strategic Issues and the Fundamental Choices Facing Nike
The firm went ahead to endorse its products by contacting celebrities. In 1995 the company contracted Eldrick Tiger to be the marketing ambassador (Lo & Sugiarto, 2021). By 2013 Nike had 48,000 employees worldwide in its stores. According to,Lo and Sugiarto (2021) the firm human resource is among the most valuable aspects of operational efficiency (Lo & Sugiarto, 2021). The firm has also been able to gain effective employee relations.
However, the company has been faced with legal issues, it has been trying to cope with international laws, but it cannot do so all the time because the laws of the product are different in different counties. Nike has been faced with lawsuits on labor abuse in the past and low wages together with bad working conditions. They affected the brand reputation and brand image. The environmental issues also affect the Nike Company (Lo & Sugiarto, 2021). From the Nike mass production, there is pollution that is created, causing environmental issues. The Chines campaigners for the Environment blamed the Nile and Adidas for the companies enhancing pollution and are poisoning the air.
Recommendations
The goals to be developed, tactics, strategies, and major activities to ensure the company carries forward are enhancing the environmentally friendly policies from its suppliers. Also, to ensure that it understands well the nation’s legal policies, it may want to expand its products to avoid entering into a lawsuit or getting a denial to enter into a new market product.
The company should continue to ensure that there is the use of technological innovations to enhance competitiveness (Lo & Sugiarto, 2021). Nike should ensure to make use of information technology from different fields to enter other countries and in its marketing strategies.
Conclusion
In conclusion, strategic planning allows the organization to secure their future, through formulating the goals that will entail them to reach attain their development and to continue making more profits. It assists the organization to be able to mitigate their risks and to focus on development. Through the solid strategic planning that Nike has been able to formulate over the years it has been able to maintain its competitiveness against its competitors.
Reference
LO, P., & SUGIARTO, S. (2021). Strategic Planning in SMEs: A Case Study in Indonesia. The Journal of Asian Finance, Economics, and Business, 8(2), 1157-1168.