1.
How has modern strategic planning changed? In what ways has strategic
planning stayed the same?
The evolution of strategic planning for business is consistent with the evolution and changes
in the business environment, technology, and global markets, and continues in response to
those changes. One notable example would be moving away from rigid planning towards
more agile and flexible approaches that are required for businesses to remain adaptable
and relevant. Today's dynamic business landscape requires organizations to adapt quickly.
The emphasis is now on continuous monitoring, feedback, and adjustments to stay
responsive to changing conditions.
In the past, strategic planning was largely influenced by historical case studies and practical
analyses focused on internal factors, which with time, in the 1970s, shifted towards a more
scientific approach incorporating statistical data (Maijanen, 2020). In the next decade, the
focus turned to the external environment and emphasised the importance of competition in
the markets, the approach that was later challenged by the internally focused resource-
based views which highlighted the role of resources, routines, and capabilities as sources of
competitive advantage (Maijanen, 2020). The more modern dynamic capability view was
brought about in the late 90s and emphasised the businesses’ ability and necessity to
transform their resources and knowledge base in response to changes in the competitive
environment (Maijanen, 2020), encompassing a dynamic approach which is still relevant in
today’s fast-paced business environment.
However, some aspects of strategic planning remain constant despite continuous evolution.
The fundamental importance of setting clear objectives, analysing the environment, and
aligning resources with organizational goals persists. Strategic planning continues to involve
the analysis of internal and external factors, with the emphasis shifting between these
elements over time, as illustrated by the swings of the pendulum described in “Teaching
Strategic Management” (Maijanen, 2020).
How do firms use mission and vision statements within a modern organization?
Vision and mission statements set the foundation for the organisation’s strategy, shape its
culture, and influence the perception of the organisation by the public, as well as the
employees and stakeholders of the organisation.
Mission statements represent the philosophy that guides the organisation, articulating its
purpose and reason for existence, and vision statements shape this mission into the outline
of what the organisation should look like in the future, what it wants to become and the
impact it aims to make (Ritson, 2013).
These statements serve not only as aspirational guides but also as tools to communicate
values and make the organisation stand out in the market. They play a crucial role in
aligning employees and stakeholders around common goals and providing a framework for
decision-making and managing change. Nearly all organisations have their own version of a
mission, a vision, or both, which are normally supported by their core values.
