Strategic planning tools

Strategic Planning tools are widely used to enhance the Strategic Planning Process. There is variety of strategic planning tools available to develop an effective strategic plan. Use the strategic planning tools, which are understandable and helps to improve your company's profitability.

Some of the available strategic planning tools are:

SWOT Analysis

PEST Analysis

Scenario Planning

Competitive Analysis

Goals Grid Method

Supply Chain Analysis

SWOT Analysis: SWOT analysis is a strategic planning tool useful to assess an organization and its environment throughly.To be a successful business firm it is very important to analyses how well it interacts with the external (operations with the outside world) and internal (office/shop/factory) factors of business environment. To meet this challenge, companies perform SWOT analysis to develop long term staregies. SWOT is the acronym for Strengths, Weaknesses, Opportunities and Threats. It is said that learning one's strengths provides key insights into the existing business opportunities, whereas weaknesses may cause immediate threats.

PEST Analysis: The PEST Analysis is another tool of strategic planning ,which is similar to SWOT model and it is designed to focus more on the external environment and important factors which can affect the present and future business. The PEST acronym stands for, Political, Economic, Social and Technological .The initial step begins with identifying the political, economic, social and technological factors and the next step will be creating an appropriate business strategy as per the current changing business trends and challenges.

Scenario Planning: Scenario planning is a logical and sensible tool of strategic planning. It involves future estimation, prediction of possible events, scenarios or changes, analysis of what will happen to the company as the expected results happens ,minimization of damage, and maximize opportunities with the help of what if analysis. Scenario planning is applicable to all kind of businesses and partly to IT industry. In small business it is not that much applicable, as plan for a scenario where one's rent might double, or one might lose the prime retail space.

Competitive Analysis: Competitive Analysis is an important tool in assessing the market competition, identifying your strengths which are close to the competitors. One of the important theories for becoming competitive is to leverage your strengths with respect to competitors, and minimize your weaknesses with respect to competitors. It is mostly useful to the industries like arena, restaurants or hotels, which compete for the dollars of consumers. It can also applicable to Non-Profitable and Charitable Organizations.

Goals Grid Analysis: Goals Grid Analysis is a simple tool to understand clearly about organizational and company goals when you are adopting strategic planning. The goals grid will be in the format of a box with four quadrants in it - a goals matrix, if you prefer that term. You classify your goals as per the given dimensions using a Yes/No system. When you are doing Goal Grid Analysis it is requires planning.

Supply Chain Analysis (or Supply Chain Strategic Planning): Supply Chain Analysis is another tool of Strategic planning. The complexity of supply chain analysis is depends on the type of business, volume and a number of business. SCM is a customer-oriented approach, designed to deliver maximum value to the customer. Most companies spend significant time and effort in executing marketing programs that drive interest in their product and establishing sales channels that convert that interest into sale. The effectiveness of whole of these efforts lay the building stone for the success of every business. The critical factor in the whole exercise is the flow of information and the effective use of it.

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