Strategic Planning
It is the managerial process of developing and maintaining a strategic fit between the organization's
objectives and resources and its changing market opportunities.
Systematic process of determining goals to be achieved in the foreseeable future. It consists of: (1)
Management's fundamental assumptions about the future economic, technological, and competitive
environments. (2) Setting of goals to be achieved within a specified timeframe. (3) Performance of
SWOT analysis. (4) Selecting main and alternative strategies to achieve the goals. (5) Formulating,
implementing, and monitoring the operational or tactical plans to achieve interim objectives.
Concept of Strategic Planning:
Planning is related with future. A planning process involves different degrees of futurity.
Some parts of the organisation require planning for many years into the future while others require
planning over a short period only.
For instance, capital expenditure is related to long- term period while budget for a year is of short-
term nature. The former is called strategic planning or long-range planning.
‘Strategic planning’ may be defined as the process of determining the objectives of the organisation
and the resources to be used to attain these objectives, as also the policies to govern the acquisition,
utilisation and disposition of these resources.
Examples of strategic planning in an organisation are—diversification of business into new lines,
planned growth rate in sales, type of products to be offered, etc. Strategic planning encompasses all
the functional areas of business and is affected within the existing and long- term framework of
economic, technological, social and political factors. It also involves the analysis of various
environmental factors—particularly with regard to how an organisation relates to its environment.
Generally, for most of the organisations, strategic planning period ranges between three to five
years.
Process of Strategic Planning:
The process of strategic planning consists of the following steps(The strategy planning
process,strategic analyisis Rudolf Grunig,Richard Kuhn, Dirk Morschett 2022)
1. Determination of Mission and Objectives:
Strategic planning starts with the determination of the mission for the organisation. The principal
objectives for which the organisation has been set up should be clearly defined. Strategic planning is
concerned with an organisation’s long-term relationship to its external environment. So, the
business mission should be fixed in terms of social impact of the organisation.
2. Environmental Analysis:
In order to identify the opportunities and threats, the external environment of the organisation is
analysed. A list of important factors likely to affect the organisation’s activities is prepared.
3. Self-appraisal:
In the next step, the strengths and weaknesses of the organisation are analysed. Such an analysis
will enable the enterprise to capitalize on its strengths and to minimise its weaknesses. The
enterprise can utilise the external opportunities by concentrating on its internal capacity. By
matching its strengths with the environmental opportunities, an enterprise can face competition and
achieve growth.
4. Strategic Decision making
Strategic alternatives are then generated and evaluated. After that, a strategic choice is made to
reduce the performance gap. The organisation must select the alternative that is best suited to its
capabilities. For instance, in order to grow, an enterprise may enter into new markets or develop
new products or sell more in the present markets.
Choice of strategy depends upon external environment, managerial perception, the managers’
attitude towards risk, past strategies and managerial power and efficiency.
5. Strategy Implementation and Control:
Once the strategy is determined, it must be translated into tactical operational plans. Programmes
and budgets are developed for each function. Short term operational plans are prepared to use the
resources. Control should be developed to evaluate performance as the strategy is put into use.
Wherever actual results are below the expectation, the strategy should be reviewed or reappraised. It
must be modified and adapted to the changes in the external environment.
Importances Of Vision, Goal and Mission
A good mission statement is like a born of success for the organization. It is very for the companies
to find out the ways and also do the regular confirmation whether company or organization is on the
right way or not.
A purpose of a clear mission statement to an organization to align the people as well as merge all the
individual’s activities in to the group. It also tells to the organization employee whether they are
doing work is important or worthwhile. A clear statement describes the importance of work to the
organization. It can change the thinking for the improvement of the organization and give the
ancillary customer services to their customers. Mission has the value that it gives the change in any
organization from time to time.
the aims and values of the company. provide their best and ancillary the customers Qualified writers
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Vision
Vision and mission statement helps to the company where company wants to go, these statement
very helpful to focus that what is done and what should be done. Mission and vision statement gives
high energy to the company for attain or set the goals, these statements requires a lot of time to
write, through mission and vision statement you can easily achieve the values.
A mission statement without vision statement is like nothing. Basically a mission statement defines
the proper aim and activities of the company which is very important for its vision. The aims of both
statements are to address and achieve the important and major goals of the company or
organization. It is very hard without vision and mission statement for any company to achieve their
goals or aims. So these statements are the born of the companies. (Clayton 1997,p.54)
Goals
They are vital to an organization’s success, serving multiple essential functions that guide and
inspire the entire enterprise.A goal requires commitment as per Feifei Yang, Mirjam Goudsmit,
George Shinkle 2022
