Benefits Of Strategic Planning

According to David (2003) strategy is defined as a long term plan of action designed to a particular goal. The word strategy was originally used as a military term it was adopted from the Greek word strategia which means generalship. Mintzberg et al (1998) suggests that strategies can be considered as a clear purpose, intent and direction for the organisation, but without the detail worked out. Strategies act as a guideline to aid Managers in making decisions. There is also the assumption that the environment will be dynamic and that competitors will attempt to gain market share. It is very important to know the organisation’s future position so that decisions can be based on knowledge rather than assumptions. Organisations arrive at

Benefits of Strategic Planning:

Sadler (2003) defines strategic planning as the form of systematized, step-by-step, procedure to develop an organization’s strategy.

Strategic planning serves a variety of purposes in organizations, including to:

1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation;

2. Communicate those goals and objectives to the organization’s constituents;

3. Develop a sense of ownership of the plan;

4. Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities;

5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed;

There are three levels of Organizational Strategy, Corporate Strategy or Top Tier:

• What business should we be

Substitute products face the same barriers to entry that medical devices face, particularly with respect to long lead times to market and initial capital outlays (Wipperfurth et al., 2010). The emergence of new substitutes will be more gradual as a result than of barrier to entry were lower.

Bargaining power of Buyers:

Purchasers of healthcare products are physicians, hospitals, nursing homes for the long-term sick and households. Buying power could be classified as moderate within the industry, and it is becoming more and more consolidated where medical reimbursement policies are evolving. On the other hand, they are specific products that are related to the health status of the population and demographic development with more than their current purchasing power.

Bargaining power of Suppliers

The suppliers to the medical device industry include manufacturing companies included in many sectors. Global markets also allow access to entities on various continents and in differently industrialized economies. It is a large and diverse group of entities which mean that their bargaining power is