Describe The Strategic Planning Process

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STRATEGIC PLANNING STRATEGIC PLANNING Strategic planning is a comprehensive process which includes everything which a business should become and how best it can achieve that goal. Basically it links the business objectives to the actions and resources required to achieve them. While doing this it offers a systematic procedure to ask and answer the most critical questions faced by the management team. DEFINITION George Steiner defines strategic planning as “the formulation of basic organizational mission, purpose and objectives; policies and programmes to achieve them, and the methods needed to achieve organizational ends. WHY DO COMPANIES USE STRATEGIC PLANNING PROCESS? Strategic planning changes the performance and direction of the business…show more content…
Monitoring the strategy. 1. Describe the organization vision, mission, and values: This is the first task in the strategic planning process. The mission is an expression of the corporate intent. These justify the organization and legitimize the corporation’s role in the society and carry the grand design of the firm and communicate what it wants to be. It clarifies the very purpose of the corporation. It also represents the corporation’s guiding principles. An organizations vision, mission and values are unique and personal to the firm. 2. Defining the Business: This is the next task. Defining the business correctly is a pre-requisite for selecting the right opportunities and steering the firm on the correct path without defining its business correctly, the firm cannot set its corporate objectives in a proper manner. For formulating the strategy too, proper definition of the business is an essential pre-requisite. Even for understanding what constitutes its relevant environment end for making its environmental search effective, the firm must have a proper definition of business. Many firms fumble in the strategic planning task because they lack a proper definition of the business they are engaged…show more content…
Environment analysis: Survey of the environment is central to strategic planning. Environmental survey forms a vital part of the strategic planning process. It helps in the formulation of strategies in line with the opportunities emerging in the environment. In its attempt at environment survey, basically a firm gathers all relevant information relating to the environment and analysis them in detail. It analysis the macro environmental factors as well as factors specific to the business concerned. Under the macro-environmental factors, the firm studies ,political environment, the legal environment, government policies covering various areas ,demographic environment ,socio-cultural environment and the economic scene. As regards the firm studies emerging trends in the industry, the structure of the industry, the nature of competition and scope for invasion by substitute products. The environmental factors specific to business concerned include; the market demand, consumer, industry, competition, government policies, supply-related factors
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