Stratagic leadership in a changing world Essay Example | Topics and Well Written Essays - 2000 words

Stratagic leadership in a changing world - Essay Example In this war the weapon is strategy. A strategy is a tool used for managing the organization’s resources in order to mitigate risks & optimize resources. This is the simplest definition of the term strategy. However in real life, the organizations face a lot of complexity to form & maintain a strategy. Strategy forms an integral part of the discipline strategic management domain. Thus framing the right strategy and implementing it stepwise is known as the process of strategic planning. The strategic planning process is a stage wise procedure that has got specific objectives and final outcomes that can be employed and analyzed. In simpler terms, this process is the means to view the future and creating an outline on the basis of recent trends and controlling the forces that can affect the strategic decisions (Ahoy, 1998). Strategic planning is an essential part of strategic management. Strategic Management involves actions and thoughts which are focused at the long-term objectiv es the entire organization and the strategic planning is usually done during situations of uncertainty (Downey, 2007). Strategies are generally designed for meeting the future challenges and for exploiting upcoming opportunities. Every firm needs a strategy tailored according to their needs (Cole, 2003, pp. 2-15). If a firm is not following a strategic plan, then it becomes tough for it to survive in this challenging world of competitions. In the present discussion we will study the Inside out and the Outside in schools of strategic management. Inside-Out and Outside-In planning Inside out is a  business strategic planning  process  that depends on the  competitive advantage  of the  firm  to  encourage  alteration,  innovation  and product development  in contrast to the external  forces  like the  market, consumer  preferences and competition. The declaration by the strategists who believe in the inside-out approach suggests that a firm  attains  better  efficiencies  and become accustomed more rapidly to the changing situations. The inside-out and outside frameworks of strategic planning involves significant concepts that are applied in order to link strategic pattern to the external and internal accountability steps. These external and internal accountability steps are widespread in all aspects of the national govern aments, districts around the schools and the local firms like the insurance companies, banks etc. Inside-Out arrangement emphasizes on the firm as the primary customer. It facilitates an association to have a vision of the firm which goes beyond the business world. The Inside out framework of planning typically puts stress on the goals, purposes and mission. It always considers the well being of the business and is characteristically known as hasty in nature. Outside-In process of planning puts stress on the general public as the key addressees. It perceives the business from the exterior. It usually con fronts the status quo and often causes uneasiness to the existing workers since it suggests transformation. Outside-in process of planning is characteristically practical in nature (Boleman, 2003). Example of Inside Out Planning Firms adapting the inside-out approach require examining their own weaknesses and strengths by putting forth the questions like, â€Å"What are we good at making and selling?†(Civichino, 2012). As the strengths are recognized, the firm creates the products accordingly and applies