New Theory on Leadership Management Science by Bingxin Wu

Author:Bingxin Wu [ ]
Language: eng
Format: epub
ISBN: 9781909287495
Publisher: Chartridge Books Oxford
Published: 2013-04-15T04:00:00+00:00

Section 3. Planning practical strategy with specific cases

The so-called strategic planning is the development and implementation of an organization’s long-term targets. It is a formal and ceremonious process. It is divided into three stages. The first stage is to determine the target, that is, the targets that the enterprise should achieve in responding to various changes during future development. The second stage is to develop the plans once the target has been identified. We should consider what kinds of means, measures and methods we should use to achieve this target. Finally, all documentation should be prepared for assessment, examination and approval, and constant modifications are needed if it fails to meet approval. This is known as strategic planning.

If businesses want to survive and develop in the increasingly fierce competition of the market, they must have a long-term point of view; take business strategy as the core content of their leadership and management; and implement strategic management, all of which is of great significance for them. Without a strategy, or if the strategy is not clear enough, the operations of the corporation have no specific guidance, and it is difficult to form specific policies to meet market demand, or to gain a competitive advantage and achieve targets. Without a strategy, there is lack of a holistic policy and policy principles to shape the operation of the different departments into a unified team The company’s leaders will be unable to keep the decentralized decision-making and actions of different departments together to form a joint force, which means the company’s efforts are likely to cancel each other out.

Leadership management and practical strategic planning

The leaders’ understanding of the political and economic situation is directly related to the direction of the strategic planning. In 1979, Lu Guanqiu read a leading article in People’s Daily named Transportation is the Key for the Development of National Economy and realized that China would vigorously develop its automotive industry. He decided to cut out all his other projects and to specialize in universal joints. A universal joint is a connector for an automobile’s drive shaft and actuating shaft, shaped like a cross, with a length from nearly a foot down to one inch; the cross-section at the four ends should be as flat as a mirror and a new one must be replaced even if is worn down by just one-sixth of a hair. Lu Guanqiu dreamed of making cars, but his career started from the most basic parts in their construction.

Leadership and management are related to the effectiveness of strategic planning. The effectiveness of strategic planning includes the two aspects. One is the correctness of the strategy, which should lead to well-matched organizational resources and environment. The other is whether the strategy is appropriate for an organization’s management processes, that is, whether or not it matches with its activities.

In 1979, Lu Guanqiu adjusted his strategy and focused on the specialized production of automobile universal joints. In 1980, for economic reasons, he delivered 0.43 million Yuan of universal joints

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