Process for Creating 5 Year Strategic Plan

Introduction
Every company exist mainly to make profit and satisfy the shareholders of the business, but
in the process of making profit, company need also to satisfy the stakeholders involved in the
business. Shareholders here are the people who have consciously invested their resources
(mostly financial) for the success of the business and stand to profit or loss depending on the
financial health of the firm while stakeholders are those people or group of people who have
legitimate stake in operational or functional aspect of the business (Donaldson & Preston,
1995). It is very critical to get these two set of people satisfied and herein is where CEOs
faces a dilemma in trying to get them satisfied considering their varying needs and
differences. In trying to be socially responsible, CEOs face the challenge of striking a balance
in trying to satisfy the interest of the shareholders. From stakeholder’s perspective, CEOs
need to cater for the society survival and development (Letza, Sun, & Kirkbride, 2004). It
involves a cost in being socially responsible to the stakeholders. Sometimes these costs can
reduce the profitability of the shareholders.
The Case Study
This case study presents a dilemma where the CEO of the company is faced with maximizing
profitability in order to keep shareholders happy and on the other hand the CEO believe the
company should be environmentally friendly as well and promote a positive social impact
which will create additional cost and put the profitability required by shareholders at risk.
This confirms the dilemma CEO are often faced with in seeking the interest of shareholders
and stakeholders. It is important to be socially responsible in the environment where the
company operates and seek the social welfare of the stakeholders but not at the expense of the
shareholders’ profit (Reynolds, Schultz and Hekman 2006). The objective of the CEO in this
dilemma is to proactively manage the issue by describing process for creating a 5-year
strategic plan to convince the shareholders that this is the best option.
This is a clear issue of corporate social responsibility, ethics and corporate behaviour.
Corporate Social responsibility (CSR) here refers to the actions company’s take beyond the
direct economic and technical interest of the organization to be socially accountable and
responsible not only to itself and its stakeholders but also to the public (Letza, Sun, &
Kirkbride, 2004). Ethics are defined set of rules, standards, and norms in the conduct of
business which are generally socially and morally right. Corporate Behavior involves legal
rules, ethical codes of conduct, and social responsibility which reflects in its business
decisions and strategic planning (Pye, 2005). As a whole, a socially responsible company
takes into consideration the corporate behavior and stakeholders expectations in line with
ethical standards that is acceptable by society.
Process of Creating a 5-year Strategic Plan
A strategic plan is a blueprint that describes the company’s current position, plans, and steps
on how to achieve your future goals. The process starts with a strategic vision, strategic

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planning objectives and implementation plan while considering the operations, marketing,
and financial plans of the company (Pye, 2005).
As the CEO of the company, I will first proposed a brainstorming meeting to identify and
map the key stakeholders of the company. This process will help to analyse the stakeholders
that need to be monitored, kept satisfied, managed closely and kept informed. After, I will
engage in market analysis in order to understand the needs, expectations, or preferences of
customers or clients. I will assess the market, competitor, and customer trends through market
research. Next I will conduct a full SWOT analysis of the company to bring out the strengths,
weaknesses, opportunities and threats the company faces. This will help to define and draw
out an all-inclusive company mission, vision, goals, and core values and also department-
level objectives. In addition, the process I will also involve drilling down the objectives,
strategies, and operational activities and tactics that is both shareholder and stakeholder
focused. Then, I will determine the budgeting plan that involves staffing, funding
requirements, and future financial projections.
Articulating the Priorities of the Strategic Plan
In articulating, the priorities of the plan, I would employ the ABC System (an approach that
facilitate prioritizing task that need to be undertaken) and Task management grid theory
(involves placing task that need attention on a grid which reveals how each task is classified
with respect to how the task need to be completed). I will distinguish and classify my plan
into 4 sections and set the priorities to put the urgent and important task first followed by
important and not urgent task, then the third section which is the urgent and not important
task. The last section, I will put task that can be postponed which are neither urgent and
important. Afterwards, I will convert this prioritized task into short and long term goals. Ali
and Abdelfettah (2016) assert that goal setting helps one to understand one’s definitive goal
clearly and know what to prioritize to accomplish it. By setting goals for my prioritized tasks,
I will be able to channel some into short term goals those with the highest urgency and
importance while the long term goals for important but not urgent task.
Actions to Convince Shareholders
I will engage sense making approach to create a shared understanding of the dilemma with
shareholders so they would see the issue from several points of view and then seek to reach a
mutual understanding that would result in a win-win situation for the shareholders and
stakeholders (Ali and Abdelfettah 2016). This can involve them shifting their stance because
having a good reputation when the company is making social and environmental impact in
the community can be beneficial to the company both at the long run.
In addition, I would embark on the following actions to convince the shareholders

 Present a research-based data to the them showing all the cost-saving and competitive
advantages of becoming sustainable and eco-friendly
 Show them that sustainable businesses can cut down energy and waste costs to make
an impact on the company’s finances Show them that becoming environmentally-

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 friendly is also a competitive advantage as there is an increase in the demand for eco-
friendly products and eco-friendly companies are preferred by customers
 Show them that becoming social and environmentally responsible gives the company
a good image in the sight of the stakeholders and minimizes the negative impact on
the environment
Key Performance Goals
The key performance goals are very important to keep focus with the overall objective of the
shareholder to maximize profit (15% per year) but also factoring the goal of environmentally
friendly and promoting social impact. I will target goals that are SMART: specific,
measurable, attainable, realistic, and time-bound (DeRuchie, 2017). I would identify the
following key performance goals to be targeted in order to increase profitability by 15%
every year over the next 5 years
i.) To grow revenue by 25% every year within the next 5 years
ii.) To reduce cost of operation by 10% every year over the next 5 years
iii.) To increase CSR activities by 5% every year within the next 5 years
iv.) To reduce cost of wastes 10% every year within the next 5 years by using sustainable
product
v.) To achieve $0 fines paid for non-compliance to regulatory requirements every year
for the next 5 years
In conclusion, the intricacy of CSR and its conflict with the company’s profitability
objectives makes it difficult for some to follow. Nevertheless, increasing environmental and
societal matters makes it a very vital part of every company’s business strategies. Through
the implementation of detailed and strategic sustainability programs, the company can make a
remarkable and positive impact on the society, thereby adding to it competitive advantage as
well as a ripple effect of financial growth.

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 Reference List

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