Impact of Strategic Planning on Crisis Management in the Profit and Non-Profit Sector in Jordan.

Author:Khrabsheh, Abdullah Abbas Al-


In the highly competitive environments of the modern world, the practice of commerce has been subject to more challenging and complex pressures. Therefore, any type of work of any extent that is not handled in a strategic manner will be severely weakened (Ocloo, et al., 2014; Nickols, 2016). Moreover, firms must locally practice suitable techniques in order to adopt a more dynamic profile (Ocloo et al., 2014). As well, the aim of devising strategies is to overcome competition and make useful distinctions within markets (Papulova & Papulova, 2006; Madu, 2013).

As a result, strategic management involves retaining the idea of achieving corporate objectives and purposes while viewing the growth of a firm in terms of the corporate resources used (Madu, 2013). Given the internal significance of strategic management to the typical firm, several researchers have demonstrated that most corporate objectives need to be handled deliberately in order to fulfill their purposes in the end (Nickols, 2016).

Consequently, the idea of strategy-focused management was conceived in terms that reflect more of the societal controls approach of the discipline (Fitzroy et al., 2012). Strategic Management (SM) as fully described by various researchers (e.g., Johnson et al., 2013; Ridwan, 2015) comprises three primary elements: strategic formulation, application, and analyses . In addition, the key practice of the SM technique comprises Strategic Planning (SP), which establishes grounds for opposing steps, including: strategic formulation, application, and analyses (Julian, 2013). As a result, SP is critical to firms for its ability to make contributions to enduring success and influences on the advance of SM (Elbanna, 2016).

Specifically, the practice can reveal newer prospects for a company as it enables defensive measures against all crises that may burden it externally or internally (Bryson, 2011). Moreover, reports (Vargo & Seville, 2011) have directed the establishment of an Associate in Nursing license that recognizes the significance of SP as a means for marshaling organizational strength to manage crisis and risks that would otherwise degrade the company and undermine its position.

Organizations are confronting changing difficulties at various times in this new millennium. Consequently, the world is becoming smaller in operational extent due to progress in information and communications technologies and other modern advances. The fractious cultural movements that induce successive crisis are confronted by organizations that risk their property, and therefore their on-going prospects. These have lately presented themselves in a variety of failures that range from financial failure, epidemics, and other natural calamities; violent actions among staffs and from terrorist factions as well. The private sector is confronting change as varied organizations experienced transitions, as a result of strong competition and compelling technological advances that arise during periods of socio-economic and political progress. Firms do not manage these factors by themselves but will respond to changes if they are required to strategically devise schemes. It is now vital to regard potential adverse conditions right from the planning and therefore the preparations required to manage them (Hasan et al., 2017).

To be clear, the management of a crisis must still be subject to good (Coombs, 2014) planning for appropriate responses. This will help company workers to improve their skills and allow the firm to survive as well as prosper (Vargo & Metropolis, 2011; Pal et al., 2014). Therefore, Vargo & Metropolis (2011) stated that Crisis Management (CM) emphasizes the handling of threat factors. Although SP also pursues the discovery of opportune prospects, the use of SP during periods of crises can be of considerable profit to the company by affording it the ability to work and compete as well as own strength in dealing with risks (Pal et al., 2014). Moreover, to be resilient, firms should use intensively SP in unsettled and dynamic issues in order to survive as well as prosper (Vargo & Metropolis, 2011; Ismail et al., 2011). As a result, Service Sector Firms (SSFs) present far more adaptable LE than alternate firms. As they require a grounded sense of strength, they will effectively handle any crisis in all places and at all times (Ocloo et al., 2014). Although several firms, particularly those in service sectors, scheme and operate poorly, numerous such organizations have prospective opportunities to grow and evolve various means of handling unanticipated challenges in a highly skilled fashion (Kraus et al., 2013). Although the significance of service sector firms in creating value and increasing employment was considered, the functions of these organizations as suppliers of key resources to services and producers were usually neglected and not fully covered (Damuri, 2014).

Strategic planning is critical to make sure that the organization is prepared to meet future difficulties. Modern strategy-oriented planning comprises a lengthy system for realizing a vision or managing future environmental conditions. The processes are neither fully prescriptive nor fully clear (Mintzberg & Waters, 1985). Given this assumption, we typically characterize strategy-oriented planning processes in terms of structured activities that continually cover objectives and mission, survey the competitive environment, analyse strategic options, and coordinate implementing activities throughout an entire organization (Andersen, 2004). The aim of effective strategic planning technique is to investigate competitive means that transform and enable organizations to attain viable positions within the marketing environments entered into by the organization (Proter, 1979).

SSSFs are exposed to the undesirable influences of various critical problems, being subject to fast-evolving market conditions and customer needs (Vargo & Metropolis, 2011). Their responses are therefore collectively affected to an extreme during crises due to constraints in human resources and funding (Bourletidis, 2013). The typical SSF actually has preparative potential to apply strategy-oriented planning in order to address risks (Ismail et al., 2011; Pal et al., 2014). This research offers a pioneering and hopefully key report on the corporate environment that addresses the limited array of research on strategic planning that is currently available in Jordan.

Literature Survey

Crises and crisis management is summarized as "the technique that enables attempts to identify and predict critical problems during activities or measures that are designed to end a crisis, or to prevent events from developing into further crises, while minimizing the effects of disruption such crises as may be unpreventable" (Preble, 1997). Hermann (1963) define the Crisis As depicted is something that: (1) debilitates high-need estimations of the association; (2) shows a confined measure of time in which a reaction can be made, and (3) is startling or unforeseen by the association. Weisath et al. (2002) contend Crisis management is a composed and deliberate process that the association endeavors to distinguish and anticipate the potential emergency and afterward utilizes a protection capacity against them to limit its belongings. Emergency administration can be led on these levels, for example, political level, key level, strategic level, agent level and specialized level.

The practice may be described as a means of proactively preparing organization for probable worst-case situations. SM involves devising strategies that can minimize adverse effects on operations in both the long and short run. Crisis management comprises disciplines for readying those resources and services that are required for successful responses during periods of crises and successful recovery afterwards (Vargo & Seville, 2011). The practice involves development of the aptitude to identify close threats to the firm and arriving at plans for meeting those threats. Crisis management involves those actions carried out for those things to be established beforehand, managed during, and assessed following crises (Wang & Ritchie, 2012). Crisis descriptions are typically presented in explicit contexts that validate selected crises interpretations; these typically comprise 3 elements that are common to the majority of crises definitions: (1) serious threats to the on-going prospects of organizations; (2) elements of uncertainty; and (3) brief decision intervals for responses (Racherla & Hu, 2009). As well, most sources support formal descriptions of crises as forming part of techniques in place of event timelines, due to their development. Subsequently, most researchers viewed it as a useful technique, with most coverage of such models comprising totally different phases of...

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