Strategic Business Planning
Strategic planning is a process of identifying the important things which we need to accomplish in the future course of business as per the priority basis. This planning will bring the entire organization in to a single set of ideas for the effective execution of plans and procedures Strategic planning helps to improves the performance of the organization and solves major issues at a macro level.
Strategic planning should have the following qualities:-
(1) It should be Specific
(2) It should be Measurable
(3) Strategic planning should be Agreed upon
(4) Strategic planning should be Realistic
(5) It should be Time bound.
The strategic planning does not means any future decisions or forecasting of business but emphasis on the basic plans which we need to reach after 3 or 5 years of business life. The strategic planning is the result of the study of where we are now which means over all assessment of the current position what we need to do for achieving better future for the business and finally it is the understanding of how will close the gap or the threats for attaining the objectives of the business.
Significance of Strategic planning
1. Long term impact of decision
Strategic planning deals with the future impact of the current decisions. It provides basic plans and ideas for the future course of actions of the business organization.
2. Strategic planning is a continuous process
Strategic planning is a continuous process starts with the organizational objectives, then defines the strategies and policies to achieve in the future and develops a detailed plans to make sure that the strategies and plans implemented in the business to achieve a desired output.
3. It is a Philosophy
Strategic planning is an attitude of the life which leads to the effective planning process of the organization to achieve the goals and objectives of the business in the current scenario.
4. Strategic planning gives the Structure
In an organization Strategic planning gives three major plans and it links the future planning process of the organization. The three major plans are as follows:-
a) Long range Strategic planning
b) Short range Strategic planning
c) Short range budget and operating plans
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Steps of Strategic Business planning
The important steps involved in the strategic planning process are as follows:-
1. Defining the Business
The Strategic planning creates a clear plan about the business and this should generate the future course of business ie, where will be the position of business after 3 or 5 years.
2. SWOT Analysis
The term SWOT stand for Strength, Weakness, Opportunities and Threats.
The Strength and Weakness indicates the internal Assessments of the organization which includes organizational assets, resources, people, systems, partnership, suppliers and customers.
The opportunities and Threats indicates the external Assessments of the organization which includes market place, competitors, trends and technologies, economic cycles, government rules and regulations etc.
3. Creating Strategic Action Plan
The strategic action plan includes the objectives of the business, initiatives for the smooth running of the business and the real action plans to be implemented in the business.
4. Implementing the Strategy
The action plans we are selected should be implemented at the right time in the right place. The implementation of a strategy will leads to the trial and error methods of the business.
5. Implementation and Review of Performance
After the implementation of the strategic plans we have to review the systems are good or unfavourable to the conduct of the business. It will be done with the help of suitable trial and error method.
These are the common steps involving in the process of strategic business planning.