Strategic planning overview

In the current competitive scenario ,all the companies face threats with changing market environment factors like new competition, new technology, change in market trends. In this backdrop, companied adopted strategic plans which guides the companies to take appropriate decisions in the bad weather. The job of drawing up strategic plans is assigned to a set of good or competent executives. There could be an element of confusion in assuming that good managers, who manage the current situation successfully and have the necessary competence to know what future direction the organization, should take. As per the experts view strategic planning is the process of identifying where you want to go, your values, factors that will affect your success, and how to get where you are going, within a long time frame. Learn how to do it properly here.

Strategic planning is an ongoing process of every company as per the changing market factors and made-up to:

Describe its future goals and set up the future course of action

To determine the future set of goals with the help of an existing strategy.

Strategic planning is involves the key environmental factors to impact the organizations future actions to optimize the expected conditions. Any business entity or fiend needs strategic planning. However, every company will have a mission, product mix, discrete customer base, and competition. Strategic planning may be equal for a free-standing enterprise, a subsidiary, a branch, or a program. It doesn't changes with the form of the company .While preparing strategic plans; it has to meet the company's goals and objectives. Business plans are different from strategic plans. Business plans are designed for an external people and strategic plans are routed to internal users. Business plans are action oriented with centralized plans. Lack of Strategy planning May help the company to be successful in Short-Term, but it may not survive in Long-Term.

The main functions of a strategic planning in organization are:

Strategic plans define the purpose of the organization and establish genuine goals and objectives as per the organization implementation framework.

Spreads the predefined goals and objectives to the organization components.

Ensure the most effective use is made of the organization's resources by focusing the resources on the key priorities.

Provides a strong platform for future progress and establish a mechanism for informed change when needed

Provides clear focus of organization with more effective outcomes

Bridges staff and board of directors

Builds strong teams in the board and the staff

Maintains good relationships which keeps the board together

Increases productivity from increased efficiency and effectiveness

Strategic planning should be takes place at the beginning of an organization is started. Strategic plans also can be made in preparation for a new venture like new department, division, major new product or line of products, etc. It is conducted yearly once to analyses whether the organizational goals are achieving or not to obtain the resources. Every year action plans should be reviewed and updated for better results.

Strategic planning involves three steps:

Strategic Analysis

Setting Strategic Direction

Action Planning

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