Strategic Planning

Strategic planning

According to ANTHONY, ‘‘ Strategic Planning is the process of deciding on the goals of the organisation and strategies for attaining these goals.”

Process of strategic planning: Environmental scanning Mission & objectives Strategy Formulation Strategy Evaluation & Control Strategy Implementation

Levels & Types of Strategic Planning Corporate Level Strategy Business level strategy Functional level strategy

Corporate level strategy focus: Deciding the business and market Building interrelationship Management and control

Business level strategy focus: Providing a platform for collaboration of various business units so that overall organisational goals are achieved. Developing a unique edge and competitive advantage in each business unit. Identifying an exclusive product or service market & developing strategies Monitoring the market for products or services, this in turn will conform to the needs of the business.

Dimensions of strategic planning Large amount of resources Role of the top level management Future oriented

Risk – bearing capacity External environment Multifunctional consequences Risk – bearing capacity

Elements of strategic planning: Competitive Edge Vision & Mission statement Strategists Long term goals and objectives Policy Strategy

Importance : Helpful in building consensus on key issues. Framework for decision making Increased profitability & market share Measurement of progress Creates longevity of the business Unique identity & innovativeness Increased job satisfaction Organisational perspective

Unforeseen future conditions Disadvantages: Costly affair Unforeseen future conditions Complex in nature

Long term benefits v/s immediate benefits Difficulty in implementation Time consuming Long term benefits v/s immediate benefits Difficulty in implementation