Strategic planning concepts

Strategic planning is defined as an organizations strategy or direction by taking decisions on allocating its resources to pursue this strategy, including its capital and people. Strategic planning frame work is a complete analysis of a strategy. It includes various Strategic planning concepts, methods, tools models, goals, methodologies and objectives of strategic planning process. A strategy should be formulated in such a way that a unique and valuable position is created for the organization in the market. A match between the external and internal factors is essential for the purpose. Several concepts are there to understand the strategic planning like gap analysis, balanced scorecard, corporate strategy, clusters, cost leadership and disintermediation.

The above key concepts are explained below to understand their importance and use when required.

Gap analysis

Balanced scorecard

Corporate strategy

Clusters

Cost leadership

Disintermediation

Gap analysis:

In business and economics, gap analysis is a tool which helps a company to compare its actual performance with its potential performance. If a company or organization is not making the best use of its current resources or is forgoing investment in capital or technology. 'Gap analysis is a formal study of what a business is doing currently and where it wants to go in the future.

It can be conducted, in different perspectives of business like organization, Business direction, Business processes and Information technology.

Balanced scorecard

The balanced scorecard (BSC) is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategyBalanced Scorecard was an effective tool for all-round development of an organization as it is used to translate the overall vision/mission of any organization into measurable business results. The other big benefit Balanced Scorecard has over any other strategic tool is the fact that it acts as both an organizations' report card on performance and an itinerary for action.

Corporate Strategy

Corporate Strategy is the form of latest methodologies for developing and implementing various business development strategies. Drawing from relevant conceptual frameworks and genuine business experiences can integrate the corporate strategy and culture with organizational structure, develop corporate, business, and functional strategies, and manage the interface of strategy and technology.

Clusters

As per the Wikipedia business cluster is a geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field

Cost leadership

Cost leadership is a strategic concept initially developed by Michael Porter to use in business strategy. It explains various ways to establish the competitive advantage. Cost leadership means the lowest cost of operation in the industry. The cost leadership is change switch the different factors like company efficiency, size, scale, scope and cumulative experience.

Disintermediation

As per Wikipedia disintermediation is theremoval of intermediaries in a supply chain: "cutting out the middleman". Instead of going through traditional distribution channels, which had some type of intermediate companies may now deal with every customer directly like the Internet.

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