OPERATION STRATEGIC PLANNING

Introduction Corporate strategy should be formulated in such a way that each business unit or element contributes towards the overall goals of the organisation. Organisations these days are operating in a complex and competitive business environments. It is east to formulate a business strategy in a stable environment. Due to lack of rapid changes in technology, the competition in earlier times was less and it was easy for an organisation to grow and expand its business. The term strategic management has emerged to help the organisation to conduct successfully in the most dynamic and complicated environment. The emphasis of strategic management is to help the corporations to develop a strategic flexibility i.e the ability to shift from one strategy to another.

Meaning Strategic planning is exactly similar to a business what a road signifies to its driver. A strategic plan is the road map for its journey i.e. it highlights what is coming down the road next and also suggest the routes for achieving the goals. It is tool that defines the routes that when taken will lead to grow a business from where it is to where it wants to go. Strategic planning is a process of defining long-term objectives, identifying quantitative goals and objectives, developing strategies to achieve said objectives, and finding resources to implement those strategies.

Definitions According to Anthony “Strategic planning is the process of deciding on the goals of the organisation and strategies for attaining these goals.” According to Hofer (1976) “Strategic Planning is concerned with the development of a viable match between organisational capabilities and the risks present in its environment.” According to Fox (1975) “Strategic planning is identification and action on important matters, matters that are important in long term.” Thus on the basis of the above definitions, the important aspects of Strategic Planning can be summed up as strategic planning is a management task concerned with the growth and future of business enterprise. It depicts how the organisations wilfully and systematically take the decisions about products, services, customers and human resources which are essential both to itself and to the society.

PROCESS 1.MISSON AND OBJECTIVES 2.ENVIRONMENTAL SCANNING 3.STRATERGY FORMULATION 4.STRATERGY IMPLEMENTATION 5.STRATEGY EVALUATION AND CONTROL

IMPORTANCE 1. Helpful in building consensus on key issues and strategies: Strategic planning provides a platform to the board of directors and senior management to actually take a step back from the routine daily business matters so that they can concentrate on the key issues important for the future of the organisation . In the absence of strategic planning the business is struck up with a short term view of the business. 2. It provides a framework or decision making: Strategic planning provides a framework within which the executive director and staff can make the decisions and understands that those decisions are moving the organisation in the right direction. The cumulative effect of these decisions can have a significant impact on the success of the organisation. 3. Increased profitability and market share: The real and tangible benefits of strategic planning can be seen in the form of better planning, capacity utilization, proper demand forecasting, and better marketing research.

4. Helps in measurement of Progress: A corporate strategic planning process forces an organisation to set the overall objectives of the organization and measures its success. The business and functional strategy further subdivides these objectives in to some measurable parts. 5. Creates Longevity of the business: In the fast paced business world where technology is changing very fast , it is essential to plan for long term and slowly change current practices to give way to new practices. 6. Increased job satisfaction: One of the top reasons for a person to leave a job is the lack of the job satisfaction. People needed to be motivated to come forward to work and feel like as if they are an integral part of the organisation.

DISADVANTGES Unforeseen future conditions. Costly affair. Complex in nature. Long term results V/s Immediate benefits. Time consuming.