Importance Of Strategic Planning

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Strategic planning

Strategic planning provides the route map for the firm. It helps the firm to take decisions concerning the future with a greater awareness of their implications. It lends a framework which can ensure that decisions concerning the future are taken in systematic and purposeful. It provides to the company and it indicates how growth could be achieved.

Strategic planning also serves as a hedge against uncertainty, a hedge against totally unexpected developments on the business horizon. Strategic planning helps the firm understand trends better, thereby making available the benefit of a lead time for taking crucial decisions and actions. Importance of strategic Planning

 Strategic planning provides the
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 Strategic planning has the ultimate burden of providing a corporation with certain core competencies and competitive advantages in its fight for survival and growth.

 Strategic planning is forecasting job and concerned with ensuring a good future for the firm.

Nature and scope of strategic Planning

Strategic planning is the management task concerned with the growth and future of the business enterprises. Through strategic planning, a corporation takes long term decisions concerning its very mission, the business it will pursue and the markets it will serve. It will pursue and the markets it will serve. It lays down its growth objectives and formulates its strategic for achieving those objectives.

 Strategic planning serves as a route map for the corporation

 Strategic planning lends a framework for systematic handling of corporate decisions

 Strategic planning lays down growth objectives of the firm and also provides strategies needed for achivieving them

 Strategic planning is ensure the firm remains a prepared
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Formulating the corporate strategy

The most crucial task, that of formulating the corporate strategy. The effectiveness of the entire strategic planning process of a firm is tested and proved by the effectiveness of the corporate strategy. The main function of corporate strategy is to provide strategic direction to the firm. It is corporate strategy that ensures the fit between the firm and its environment. It is tool with which the firm matches its growth nees with the promises and threats of the environment.

 Examine which generic strategy the firm should opt for:
Stability, expansion, divestment, combination.
 Understanding the effect of the alternatives in terms of changes to the firm’s existing product market posture
 Clarifying the competitive advantage and synergy which each alternative would require.

Monitoring the strategy

The strategy has to be monitored and adjustments that become necessary have to be brought about. What is to be monitors here essentially is the compatibility of the strategy with the environment as well as the internal realities. In this case the objectives decided upon may require
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