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

According to Hofer (1976) “Strategic Planning is concerned

According to Fox (1975) “Strategic planning is
identification and action on important matters, matters
that are important in long term.”
deciding on the goals of the organisation and strategies for attaining
these goals.”
with the development of a viable match between
organisational capabilities and the risks present in its
environment.”
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
5.STRATEGY
EVALUATION AND
CONTROL
1.MISSON AND
OBJECTIVES
4.STRATERGY
IMPLEMENTATION
2.ENVIRONMENTAL
SCANNING
3.STRATERGY
FORMULATION
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.