Strategic planning purpose

Strategic planning is the process by which an organization envisions its future and develops strategies, goals, objectives and action plans to achieve that future. Strategic planning defines your company's course of action and explains about the allocated budgets and resources. Portfolio Management involves huge analysis of investment choices which supports the company. The strategic decision will become the company's business strategy for producing company products and services, handling customers and using competitive tactics. A sound strategic plan evaluates the portfolio investment analysis. Intially you decide your company's goals and objectives. Goals are refer in terms of a framework for achievement. Objectives are not interlinked with the time.

A sound strategic plan should be having below objectives:

It serve as a framework in supporting the decisions,

It explains the business to others in order to inform, motivate and involve,

Also assists in benchmarking and performance monitoring,

Motivate changes and building block for future plan.

To present a vision of success that will guide the ongoing development of the organization

To identify priorities for action

To provide a multiyear schedule of milestones and a process for monitoring and updating

Provides clearer focus of organization, producing more efficiency and effectiveness

It links staff and board of directors of the corporation companies

Helps in the formation of strong teams in the board and the staff of the corporations

It attaches the board members with the corporations

An effective strategic plan gives great satisfaction between planners and beneficiaries with a common vision

It increases productivity from increased efficiency and effectiveness

Also solves major problems

Business development and strategic planning both are interrelated but business development is more focused, unlike strategic planning. The business strategy model is applicable to every form of organization and their internal departments. It applies to all types, all sizes and all points organization development cycle. Due to the changing environment, strategic plans keep changes. Strategic Planning identifies the organization's future course of action. The "strategic" part of this planning process focus on the changing trends of the organization and its external business environment, and how this affects the future of the organization.

Strategic planning concentrates on:

Taking a wide look around at what's going on outside the organization and how it might effect the organization

Taking a hard look at what's going on inside the organization, including its strengths, weaknesses, opportunities and threats (a SWOT analysis)

Establishing statements of mission, vision and values
establishing goals to accomplish over the next (usually) three years or so, as a result of what's going on inside and outside the organization.

Identifying the above goals will be reached (strategies, objectives, responsibilities and timelines) An effective strategic planning can helps an organization to achieve its vision and mission statement as stated in its strategic business plans are:-

Attaining credibility

Maintaining quality standards of its products

Conducting updated market research to keep in touch with the consumer needs Profitability of the business

Cost-effective manufacturing and operations of its activities

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