Connecting System Thinking with Strategic Planning

As such, the fusion of these two approaches can lead to better management practices in today’s organizations.In the process outlined above, the definition of the situation is critical and which is usually the major problem. The causes of the problem such as behavioral patterns would be reviewed. In addition, the underlying structure of the behavioral patterns should also be evaluated as well as the identification of the leverage points. The alternative structures should then be formulated as well as the solution to the problem (Batra, 2010, p.7).The environment would consist of political factors, socio-cultural factors, technological factors, economic factors, legal factors, natural factors, and global factors. Political factors should be taken into consideration such as the political situation considering a country’s form of government and it direction towards liberalization, globalization, and privatization. Socio-cultural factors should also be considered since the cultures of the people in a country are important determinants in the market as well as its social structure (Chandler, 1962).Economic factors also should be considered in the formulation of strategy. The current global economic crisis spurred by the United States’ real estate bust had given some problems to some markets in the world. In addition, the legal factors in the country must be considered such as the laws and regulations for business as well as the natural factors such as the materials and natural resources in a country. Global factors such as the current trend in globalization which is attracting huge foreign investments is a vital consideration in strategy formulation (Ansoff, 1965)The company resources should be considered such as its organizational structure, human resources, capital, managerial expertise and experience, and facilities. The organizational structure of the company must be responsive to its strategy. In other words, if the company’s strategy is towards expansion, thus, the structure of the company must also expand and designed to meet the objectives of the plan (Ansoff, 1965)