Final answer:
The manager's ability to engage in strategic planning allows for a comprehensive view of the organization's future, involving partnerships and collaboration that lead to shared long-term visions and credibility. This big-picture thinking is essential for securing investment and guiding the company towards success.
Step-by-step explanation:
When a manager plans for the future of the business and visualizes how all of the parts of the organization work together to achieve a unified goal, it is said that he or she is engaging in strategic planning to see the "big picture."
This process involves developing a long-term vision that is shared by the wider community, including stakeholders such as employees, customers, land owners, local communities, and the non-governmental sector. Engaging in strategic planning not only involves the internal mechanics of the firm’s operations but also considers broader market trends, competitive landscapes, and socio-economic factors that could influence the company's future.
For effective strategic planning, managers need to build partnerships and collaborate with various parties that are directly or indirectly connected with the organization. This inclusive approach earns the project credibility and secures wide ownership of the strategic plans, which are crucial to its ongoing implementation and success.
As a firm flourishes and information about its products, revenues, costs, and profits become widely available, the knowledge of individual managers becomes less critical to investors such as bondholders and shareholders who are willing to provide financial capital based on company performance rather than personal relationships with the managers.
Therefore, the ability of a manager to engage in strategic planning and see the overall vision of the company is essential for securing investment, establishing productive relationships, and steering the company towards profitability and growth.