The Role and Importance of the Strategic Plans as an Innovative Tool in Determining the Direction of Companies From the Financial Success Perspectives

The Role and Importance of the Strategic Plans as an Innovative Tool in Determining the Direction of Companies From the Financial Success Perspectives

Mustafa Tevfik Kartal (Borsa İstanbul, Turkey)
DOI: 10.4018/978-1-5225-7180-3.ch025

Abstract

Companies have a variety of aims. Among them, the most important one is to survive. However, survival is not an easy subject in the global environment. Even surviving becomes harder while competition increases. So, companies have to deal with both globalization and competition at the same time. Although it is possible to mention about lots of tools, one of the most important innovative management tools is strategic planning in terms of the financial success perspectives. The strategic plan (SP) is a tool that can be used to shape their future and to survive by companies. It is concluded that SPs have important benefits. Firstly, SPs make the contribution to the survival. Secondly, SPs are helpful to plan future. Thirdly, SPs are used as a guide. Fourthly, SPs trigger good management practices and innovation culture because of requiring transformation processes. Fifthly, due to triggering internal transformation works, SPs make the contribution to gain the comparative competitive advantage. Sixthly, by implementing SPs well, it is inevitable to reach good financial results.
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Strategy And Strategic Plans

Companies aim to create the highest profit by using optimum resources and decreasing costs and which is the best for them (Zengin, 2017, 98). Companies search for ways in order to reach this. Although it is possible to mention many options, one of the most important tools is strategy and strategic plan.

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