Strategic planning evaluation

Strategy is a repetitive process which is followed at various levels of an organization. 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

Evolution:

Strategy is taken to be the basis on which future plans are made for the organization. Strategy is originated form the military model, so the tendency to make plans in attack or defense is always considered. In 1960s it was assumed that the business world was conventional and balanced, which was later transformed in to false. In 1980s Michael Porter introduced a five force model. There have been various historical influences on strategy like 'natural selection, systematic planning, adaptive, cultural, political and visionary'. There is a need for traditional strategic planning to take a more humane approach for accomplishing organizational objectives. Presently, strategy is considered as a holistic discipline.

E-dimension:

After the introduction of Internet, many people considered the old rules of strategy and its competitive advantage to be outdated. But it is not so, the old rules say that to be more profitable and valuable than the average companies, an organization has to achieve a sustainable competitive edge, a unique selling point, by operating at a lower cost or commanding a premium price. Internet presents a good scope for cost-cutting with the help of online marketing and branding. It was considered that those who entered the Internet boom first were more benefited than the ones who entered later. But statistics reveal that those who entered relatively late caught up with the other companies easily. On the one hand, intermediaries are appreciated for quick and low-cost service through the Internet and on the other side; they are cursed by the advocate of traditional business. Internet has enabled the customer to enjoy the freedom of pricing his products rather than the sellers.

Globalization:

The next phase, Globalization has brought the world closer. It is believed that your biggest competitor is most likely to be an organization out of your country or continent. This is the impact of globalization on the market. The availability of goods from around the world is no longer a dream. What is necessary is that global brands need to accustom your self to the products to suit the local markets. The size of the organization is insignificant in the age of Internet and globalization. Technological advances have enabled poor countries to compete with other countries on an almost equal footing. There have been mergers and acquisitions which have led to big organizations becoming even bigger. This has led to more competition in the market. Globalization has strengthened the need for an organization to strive for excellence.

Current business trend:

Strategic planning provides the foundation and framework for the Strategic planning. A sound strategic plan should:

Serve as a framework in taking decisions approval.

Explain the business to others in order to inform, motivate and involve.

Assist benchmarking and performance monitoring.

Motivate changes and building block for future plan.

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