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Question: Discuss About The Strategic Planning Business Performance? Answer: Introduction The Rock Paper Scissors is located in Australia that is currently facing management issues in the contemporary environment. The report focuses on these challenges and the recommendation provides recommendation from the analysis of the management issues identified. Fadi and Fatimah Khan are the founder and owner of this hairdressing saloon that was established about a year ago. They planned of starting the saloon with after the hairdressing competition took place in Australia, where Fadi won the first prize. This is a unisex saloon that provides service to both men and women. Their saloon has all the facilities like staffs and equipments that the customers look for in a modern hairdressing saloon (RockPaperScissors Salon. 2017). In spite of having all these facilities, the saloon constantly failed to experience a profitable outcome. A thorough research on the organization represents issues in the various level of management. They are unethical practices by the staffs, lack of financial reporting in the organization, lacks of motivation and encouragement in the organization, leadership issue and absence of defective management, lack of performance evaluation, lack of goals and objectives, absence of mission and vision statement of the business, and absence of strategic planning for running the business. The business is failing to incorporate these factors which are why they are unable to gain any advancement in their business. The report will be addressing the identified issues in the management of Rock Paper and Scissor. The report would provide an analysis of these issues and make recommendations to mitigate the problems. The provided recommendations follow and bounded by the principles, theories and models of management that will support the business to gain control and generate profit out of it. The proposed recommendations can be summed up as follows. The business requires a strategic planning to assess the business environment and the contrivance of business objectives and strategies to overcome the issues in management system Schemes related to the motivation have to be incorporated in the business for encouraging the workforce. The business should follow Maslows motivational theory to achieve the desired goal. An effective leadership is necessity and the owners need to hire an effective leader who will contribute in directing and managing the issues that are present in current workplace. The leader can also contribute in motivating the employees and help setting up the workplace environment accordingly. Requires fresh up to date business plan that successfully communicate with the market. Incorporating the employee performance tool along with the financial monitoring tool for keeping track on the identified issues. Set workplace ethics for creating value. Management Concept, Principles and theories discussed in this report It is an inseparable and one of the most important parts of organizational management. The importance of strategic planning is irrespective of the size of the business. It helps the company to set the priorities of the company and direct its strength and resources toward it for achieving the goal of success in the competitive market (Steiner, 2010). Rock Paper and Scissors falls under the category of a small business and this can be a reason they have overlooked the necessity of a strategic planning. However, on contrary of their viewpoint, the small-scale businesses require more effective and correct planning to compete with the big brands operating in the market (Poister, 2010; Skokan, Pawliczek Piszczur, 2013). The case demonstrates a lack of organized management in the business and requires strategy based planning to focus on their goal and for value creation. Goals, Strategies, and Objectives Goals, objectives, and strategies are the first three things that an organization needs to set prior to starting any business. Each one of the three has its own purpose in the process where the goals classify the track for the organization that will help achieving the growth. Objectives on the other hand set by the organization to mark the target that it desires to achieve over a certain period. It can be like achieving certain number of customer base, customer loyalty through providing certain services or can mark the desired expansion of the business. Whereas, the strategies of an organization are formulated on the basis of goals and objectives previously set by the company. Strategy of a company defines the way taken by the company to meet the objectives. It involves target segmentation, market analysis, other marketing, and management procedures that define the process of achieving the goals. With the reference of the company under study, the company requires different strategy f or dealing with the customers based on their sex. Mission and Vision Statement The mission statement states the purpose and primary objectives related to the customers needs and team value. Besides, it identifies the process of reaching the position it desires to be. Vision statement on the other hand describes the position it wants to reach and communicates the purpose and values of the organization to the customers. One can observe the present leading to the future through the mission statement, whereas, the vision statement identifies the future. Both of these statements helps the organization in identification of the hurdles in the system and prescribes the method of overcoming them for successfully reaching their goal (Fuller, 2014). These have to be aligning with the goals and objectives of the company so that it can successfully communicate to the customers and the employees as well for creating brand value. Motivation Maslows motivation theory communicates the necessity of motivation in improving the performance of the employees that results into the improvement of the organizational performance. It is the responsibility of the management of the company to look after the employees and keep them motivated. According to the theory, there are certain needs of every employee working in any organization and the theory classifies them into five different stages to form a pyramid (Jerome, 2013). This is the reason Maslows motivation theory is popularly known as the need hierarchy theory. Maslow suggests the organizations to fulfill the needs of individual worker in the organization to keep them motivated in the workplace by setting target. This will direct the workers to express their full potential, as it will let them fulfill their needs (Maslow, 2013). The motivation factors could also be dividing into extrinsic and intrinsic. The extrinsic factors states the benefits and compensations offered by the company to its employees, whereas, the intrinsic on the other hand is to make the workplace more attractive where the employees will enjoy working. The intrinsic factors prove to have more profound effect than the extrinsic factors as it provides job satisfaction. Leadership Leadership is the primary criteria for an organization to succeed. No proper style of leadership is absolute in gaining organizational success as the leadership changes the atmosphere of the workplace. However, certain leadership proves to be useful in certain workplaces. For example, the transformative leadership proves to be the best in motivating the employees in the corporate and private sector. Whereas, the autocratic leadership is required in the military for achieving success (Lidow, 2014). Hence, selection of accurate leadership is necessary for the success of the organization. Performance Management Performance management includes the tracking of performance of the employees working in the organization. It is an important part of the organizational management and monitored by the manager or the owner of the organization. It will enable the authority to track individual performance and help determining the necessary steps required to improve the individual performance gain improvement in overall organizational performance (Buckingham Goodall, 2015). It is directly related to the motivation and leadership of the organization as proper leadership can motivate the employees and address the issues for extracting optimum performance from the employees. Financial Reporting Financial reporting or budgeting is an integral part of business strategy of any organization. It will help them to track and control the investment in the business and the outcome received from the investment. An annual budget will also facilitate in determining the sectors where more investment is required (Thesis, 1937). This will direct the cash flow in the business and provide details for managing the investment. Ethical Practices At present times, the government has made it mandatory for every organization operating in any industry to include CRS policy in their strategy. It is the ethical practices of the organization. It also facilitates in value creation for their product by considering the organizational responsibilities towards the society (Crane Matten, 2016). Innovation It is mandatory for every organization to have an innovation strategy in order to maintain the sustainable growth and to compete in the competitive market. Companies can achieve competitive advantage in the target market segment by introducing innovation in their business model that will differentiate their business from other similar organizations operating in the market (Ngo O'cass, 2013). Strategic Planning The management issues identified in Rock Paper Scissors has to mitigate with proper implementation of strategic planning. It will help the organization in maintaining a proper track and facilitate in addressing the future risks that might come. Some of the steps in hand can be recommended for the selected organization in the process that are: Identification of the current issues Identify the strength and weaknesses of the organization Set the priorities of the issues according to their intensity Make strategic planning for addressing the issues in order The plan should be focusing on the strengths to improve the situation and address the weakness and develop accordingly Proper implementation of the above mentioned steps will help the Saloon to overcome the strategic issues present in the organization and gain strategic improvement necessary for generating profit from the business. Goals, Strategies and Objectives As identified in the previous section, the organization is lacking a clear goal, objective and strategy for their business. It is necessary for the organization to identify these and incorporate them in the business. It has to be formulated prior to setting the various strategies needed in the organization as the strategies will aim to address the goal and objectives for making profit in the target market segment. This process will involve market investigation using various tools available for market analysis. The SWOT analysis, porters five force model and 7Ps of marketing will help the company to identify the market situation and clear the path of selecting goals and objectives for the company. Mission and Vision Statement As the business under study is a small one, it is important for them to clearly state an effective mission and vision for their business. It will enable them to focus on their target and operate accordingly. Besides, these statements will also help in communicating the value creation and value proposition to their customers and the major stakeholders of the organization. Moreover, a strong mission and vision statement can also facilitates in motivating the employees and provide energetic work atmosphere that will improve the organizational performance. Motivation Considering the present workplace situation in the organization, the company requires to incorporate various intrinsic and extrinsic factors to motivate their workforce to increase the organizational performance. They can utilize different motivational theories proposed by Maslow, Hertzberg or Alderfer for preparing their motivational strategies. Leadership The importance of effective leadership in the organization is inevitable. Rock Paper Scissors has a clear deficiency in effective leadership that needs immediate attention of the owners. They are failing in leading the organization. Hence, it will be wise for them to hire a manager with transformative leadership skills to address the issues in the organization. The leader has to address several issues ranging from motivation, finance, and strategy formulation to making ethical consideration in the business. It is recommended for the leader to consider the Taylors four management principles to bring change and have effective management in the organization. Performance Management It will be the managers responsibility track and manage the performance of the employees. Motivation can only increase the employees performance, but it is important to make note of the performance to understand the development achieved. It helps in defining every aspect of the employees involvement with the organization and its outcome in process. This process starts from the day the employee start working in the organization and end when they take a permanent leave form it. It helps in differentiating the performer from the rest and also tells who is lacking in their performance. Following this tracker, the company can set the appraisal for the good performers and motivate who is lacking. Rock Paper Scissor should also incorporate these steps. Financial Reporting This refers to the budgeting of the company. The company has to make annual budget for the business to track the investments over various sectors and the revenue generated. This will help Rock Paper Scissor to identify the sectors where more investment is required and where they can minimize their investment to have better outcome. Ethical Practices Corporate Social Responsibility policy is required in Rock Paper Scissors for creating value and communicate value proposition to their stakeholders. It will also facilitate in motivating the workers. Their CSR policy should address the environmental degradation and conduct their business accordingly. For instance, the saloon can promote reduction of water wastage as a start of consideration of CSR. Innovation It is required for the business to incorporate innovative model in their business model to operate in the competitive market. The company is required to recognize the cost structure and revenue streams and make comparison between them to understand the requirement of the business. The integration model can help Rock Paper Scissor to continuously supervise the business model and increase revenue generation. Conclusion The above discussion identifies that the size of the organization is of little importance in the case of management. Both the large and small scale business organization requires strategic planning, motivation, ethical consideration, performance management, appropriate leadership and other management aspects. It does not means that the small business requires little strategic planning or set less impressive goals and objectives. However, the small businesses require working on these factors more efficiently to get a desired outcome and compete in the market challenging the big brands operating in the target market segment. Some of the strategies are recommended for the organization under study that has the potential to improve the situation and generate revenue for the business. Though the business is a startup and only completed their one year of operation, proper implementation of the recommendations will help them to reach the breakeven point faster than the present rate of growth . Recommendation Modifications that are required in the business are discussed in the section 3 of the report. It identifies the sections where the company requires implementing strategies. They are: Strategic Planning Goals, objectives and strategies Mission and Vision Statement Ethical Practices Performance management Financial reporting Motivation Leadership Innovation References Buckingham, M., Goodall, A. (2015). 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