Question: What Is Meant By Strategic Planning?

What is the scope of strategic planning?

Strategic planning is the management task concerned with the growth and future of a business enterprise.

Strategic planning can be viewed as a stream of decisions and actions that lead to effective strategies and which, in turn, help the firm achieve its growth objectives..

What are the elements of strategic planning?

The major parts of a standard strategic plan include the following:Mission, vision, and aspirations.Core values.Strengths, weaknesses, opportunities, and threats.Objectives, strategies, and operational tactics.Measurements and funding streams.

When should you do strategic planning?

When Should Strategic Planning Be Done?Strategic planning should be done when an organization is just getting started. … Strategic planning should also be done in preparation for a new major venture, for example, developing a new department, division, major new product or line of products, etc.More items…

What are the 7 steps of the strategic management process?

Seven steps of a strategic planning processUnderstand the need for a strategic plan.Set goals.Develop assumptions or premises.Research different ways to achieve objectives.Choose your plan of action.Develop a supporting plan.Implement the strategic plan.

What are the steps in strategic planning?

The 9 Steps of Strategic PlanningStep 1: Situation analysis. … Step 2: Future state vision. … Step 3: Prioritize vision elements. … Step 4: Develop communication objectives. … Step 5: Develop strategies and tactics. … Step 6: Prioritize strategies and tactics. … Step 7: Define metrics, timelines and responsibilities. … Step 8: Develop strategic and tactical plans.More items…•

What are the three steps in the planning process?

The planning processing has three essential steps – Determining missions and goals, Formulating the strategy, and finally Implementing the strategy.

Why is planning difficult?

Planning is hard because predicting is hard. Of course, predicting is a lot easier when you have more information, but usually we have far less than we’d like, so planning is hard because of limited information. … People of think of planning as being about “doing”, but in truth planning is just as much about “knowing”.

What is the main purpose of strategic planning?

The purpose of strategic planning is to set overall goals for your business and to develop a plan to achieve them. It involves stepping back from your day-to-day operations and asking where your business is headed and what its priorities should be.

What are the 4 types of planning?

The 4 Types of PlansOperational Planning. “Operational plans are about how things need to happen,” motivational leadership speaker Mack Story said at LinkedIn. … Strategic Planning. “Strategic plans are all about why things need to happen,” Story said. … Tactical Planning. … Contingency Planning.

What are the five steps in the strategic planning process?

5 Step Process for Developing a Strategic PlanStep 1: Write a Vision Statement. … Step 2: Write a Mission Statement. … Step 3: Perform a Gap Analysis. … Step 4: Write SMART Goals. … Step 5: Monitor Progress.

What is type of plan?

Plans commit individuals, departments, organizations, and the resources of each to specific actions for the future. … Three major types of plans can help managers achieve their organization’s goals: strategic, tactical, and operational.

What are the methods of planning?

Planning TechniquesStrategic Planning. Strategic planning aims to ensure employees and other stakeholders are all working towards a common goal and their energy, focus and resources are all aligned towards this. … Action Planning. … Tactical Planning. … Operational Planning. … Assumption-based Planning (ABP) … Contingency Planning.

What is strategic planning explain with examples?

As such, strategies are the broad action-oriented items that we implement to achieve the objectives. … Objectives include baseline performance, targeted performance, and an established date for achieving the objective. Any example of a strategic plan must include objectives, as they are the foundation for planning.

What is strategic planning and why is it important?

Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

What is the purpose of action plan?

An action plan is a document that lists what steps must be taken in order to achieve a specific goal. The purpose of an action plan is to clarify what resources are required to reach the goal, formulate a timeline for when specific tasks need to be completed and determine what resources are required.

What are the benefits of engaging in strategic planning?

5 Benefits of Strategic Planning Creates a sense of direction. … Increase operational efficiency. … Increase market share and profitability. … Increase durability and sustainability. … Being proactive instead of reactive.

What are the 6 steps in the planning process?

The six steps are:Step 1 – Identifying problems and opportunities.Step 2 – Inventorying and forecasting conditions.Step 3 – Formulating alternative plans.Step 4 – Evaluating alternative plans.Step 5 – Comparing alternative plans.Step 6 – Selecting a plan.

What is the difference between a strategy and a plan?

A strategy looks at every possible influencing factor, both seen and unforeseen and comes to terms with the whole situation, not just one end result. A plan says, “Here are the steps,” while a strategy says, “Here are the best steps.” Strategy speaks to the reasons why, while the plan is focused on how.