What Is The Main Purpose Of Strategic Planning?

What is the meaning of strategic planning?

Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization’s ….

What are the three definition strategies?

Definition: Michael Porter developed three generic strategies, that a company could use to gain competitive advantage, back in 1980. These three are: cost leadership, differentiation and focus.

What are the 7 steps of the strategic management process?

7 Important Stages of Strategic Management ProcessWhy Strategic Management is Essential for a Business? … Stage 1: Setting the Goal. … Stage 2: Initial Assessment. … Stage 3: Situation Analysis. … Stage 4: Strategy Formulation. … Stage 5: Strategy Implementation. … Stage 6: Strategy Monitoring. … Stage 7: SWOT Analysis.More items…

What are the major steps in a strategic planning process?

5 Step Process for Developing a Strategic PlanStep 1: Write a Vision Statement. … Step 2: Write a Mission Statement. … Step 3: Perform a Gap Analysis. … Step 4: Write SMART Goals. … Step 5: Monitor Progress.

What is strategic planning and why is it important?

Strategic planning is important to an organization because it provides a sense of direction and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

What is the main focus of strategy?

The strategic focus is essentially the same as Drucker’s theory of business: Assumptions about the specific mission of the organization, what it considers meaningful results – its vision, mission, passion.

What are the purposes of planning?

The planning done by managers is aimed at achieving the organizational goals. The planning helps people in concentrating their efforts on the most important jobs rather than wasting time on the lesser important work. The purpose of planning is also to minimize the cost of performance and eliminate unproductive efforts.

What are the 5 steps in strategic planning?

The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring.Clarify Your Vision. The purpose of goal-setting is to clarify the vision for your business. … Gather and Analyze Information. … Formulate a Strategy. … Implement Your Strategy. … Evaluate and Control.

What are the elements of planning?

Planning as a managerial process consists of the following elements or components:Objectives: The important task of planning is to determine the objectives of the enterprise. … Forecasting: … Policies: … Procedures: … Rules: … Programmes: … Budgets: … Projects:More items…

What is strategy and its purpose?

Guide. Strategic planning is a systematic process that helps you set an ambition for your business’ future and determine how best to achieve it. Its primary purpose is to connect three key areas: your mission – defining your business’ purpose.

What are the objectives of a strategic plan?

Strategic objectives are statements that indicate what is critical or important in your organizational strategy. In other words, they’re goals you’re trying to achieve in a certain period of time—typically 3-5 years. Your objectives link out to your measures and initiatives.

How do you prepare a strategic plan?

How to Prepare for a Strategic Planning ProcessAgree on a strategic planning process. You should provide an understanding of what strategic planning is and how it is done, as well as discuss its potential value to the practice, in terms of providing a common vision and focus, with agreed-upon goals and strategies. … Do a SWOT analysis. … Identify the strategic issues.

What are the steps of planning?

The steps in the planning process are:Develop objectives.Develop tasks to meet those objectives.Determine resources needed to implement tasks.Create a timeline.Determine tracking and assessment method.Finalize plan.Distribute to all involved in the process.

What are features of planning?

Features of Planning – Primary Function, Pervasive, Future Oriented, Goal-Oriented, Continuous, Intellectual Process, Aims at Efficiency and Flexible. There are a lot of views about the features of planning.