Amazon vs Xerox Strategic Analysis


Amazon vs Xerox Strategic Analysis

Strategic planning a process through which a company decides its vision or target and how it will achieve them. Operational planning, on the other hand, is the detailed organizational plan for the upcoming financial year. (Abraham, 2012, Ch. 8). While strategic planning involves setting purposes, targets and visions, and how they will be achieved, the operational plan is a collection of projects, programs and activities that the company is currently executing. Operational planning mainly involves coordinating all the activities to ensure they have supported the strategies that were set through strategic planning.

In strategic planning, participants vary depending on the scope of the plan. CEO, top management team, or plan implementers all participate in the process. The participators in the operational planning are mainly vice-presidents of different departments, key managers and heads of key operational units such as production and marketing.

Operational planning offers several benefits to the company, the leading one being helping the organization establish the impact of its operations on the set goals such as profit and sales. The company can also use operational planning to point out weaknesses and initiate strategies to turn them into strategies.Order Now from Course ResearchersAmazon is an example of the company which has registered success in both strategic and operational planning. Amazon invests in the right plan at the right time, an approach that has kept it ahead of the competitors. In the bid to make more sales and profits, Amazon focuses on investing in digital technology, improving logistic applications, enhancing web services and investing in Research & Development.

Xerox is an example of a company that did not consider using strategic and operational plans to achieve its profit goal. In 2000, the company reported a quarterly loss for the first sixteen years. Before the profits dropped below the break-even point, the company had reported high costs and weak sales in the previous. This was attributable to the company’s senior management who disregarded the roles and benefits of strategic and operational planning within the organization. Instead of making decisions in line with Xerox’s strategic and operational plans, the management focused on accounting violations to portray the company’s operational and financial performance as good.

References

Abraham, S. (2012). Strategic management for organizations. Retrieved from https://content.ashford.edu/



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