Question $1(25$ marks$)$

Read the following case study and answer the questions that follow

A SYSTEMATIC APPROACH TO STRATEGIC PLANNING

One of the largest companies in the world, which vast operations around the globe, has a very systematic strategic planning process. The organisation is divided into many companies. Each year, all of the companies prepare a two $$ day presentation for corporate administrators to whom they report. They present highly detailed plans of the objectives the company will reach over the next few years, and the specific strategies that will be pursued in order to reach these goals. Hundreds of PowerPoints $$ style slides are used. A rigid format is followed, so that the presentations of each company contain the same element, and corporate executives know what to expect $.$in preparing for the presentations, company managers are very cautious. they are to bring up hesitant to bring up highly innovative ideas that could lead to dramatic changes, because the managers know that once they commit to their performance targets, the manager will be held accountable for reaching them. The managers are afraid to fail because the organization penalizes failure. In general, the organization does not reward unconventional thinking. Consequently, the company has been limping along for several years now, with many performance problems and low shareholder returns.

Source: J$.$ M$.$ Liedtka, $$Strategy Formulation: the role of Conversation and Design.

$1.$ Differentiate between Strategic Planning and Operational Planning. $(10$ marks$)$

$2.$ Based on the above case study, discuss the characteristics that the Strategic Thinking managers need to possess in order to improve performance of the organisation. $(12$ marks$)$

$3.$ How can this company motivate managers and employees to think strategically? $(3$ marks$)$