| Definition |
Strategic Planning is a comprehensive process for determining what a business should become and how it can best achieve that goal. It appraises the full potential of a business, and explicitly links the business objectives to the actions and resources required to achieve them. Strategic Planning offers a systematic process for asking and answering the most critical questions confronting a management team especially questions regarding large, irrevocable resource commitments. |
| Implementation |
Successful Strategic Planning systems help managers to accomplish the following tasks:
- Describe the organisations core purpose (mission and vision) and fundamental values
- Target potential business arenas and explore each market for emerging threats and opportunities
- Understand the current and future priorities of targeted customer segments
- Analyse the companys strengths and weaknesses relative to competitors, and determine which elements of the value chain the company should make versus buy
- Identify and evaluate alternative strategies
- Develop an advantageous business concept that will profitably differentiate the company from its competitors (and discourage their intrusion)
- Define stakeholder expectations and establish clear and compelling objectives for the business
- Prepare programs, policies, and plans to implement the strategy; establish supportive organisational structures, decision processes, information and control systems, hiring and training systems, and behavioural norms
- Allocate resources to develop critical capacities
- Plan adaptation to possible contingencies
- Monitor performance and respond to environmental changes
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| Purpose |
Strategic Planning systems are often implemented to:
- Change the direction and performance of a business
- Encourage fact-based discussions of politically sensitive issues
- Create a common framework for decision making in the organisation
- Set a proper context for budget decisions and performance evaluations
- Train managers to develop better information for better decisions
- Increase confidence in the business direction
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