Question

Part A: List the basic steps in strategic planning. Part B: Briefly discuss the needs, benefits, and approaches of the strategic planning process for today’s MNC (Multinational Corporations

Answer 1

a. In essence, the strategic planning method is a list of steps executives should take to finish and execute a policy within a business. The strategic planning method comprises several main parts, including common stages such as strategic assessment and formulation of strategies, as well as execution and tracking.

The basic steps are as follows:

1. Identify Your Strategic Position- The first stage prepares you for the rest of the strategic planning process. To achieve your goals, you must first have a clear vision. Start by defining both your short-term and long-term objectives. In short, what do you hope to achieve? Next, determine what steps you will take to accomplish these objectives. When identifying your strategic position, remember that your goals should be realistic and measurable. For help with this step, look back to your mission statement, corporate values, and work culture

2. Gather People and Information- You will want to bring in the individuals who will be engaged in the scheduling process once you have developed your strategic stance. You are also going to want to take as much up-to-date data as possible to the table. Ensure that any information you use is precise in order to make informed, fact-backed choices.

3. Perform a SWOT Analysis- SWOT, which is an acronym for strengths, weakness, opportunities, and threats, acts as a powerful tool during the strategic planning process. A SWOT analysis is often performed to help identify the strengths and weaknesses of a business, as well as identify any opportunities and threats that could arise

4. Formulate a Strategic Plan- You can start working on your strategic plan once you have effectively recognized your strategic situation and have a set of objectives that align with the mission of your company. Consider which projects will have the biggest effect on your company when designing your plan and which will most assist enhance your position.

5. Execute Your Strategic Plan- Once you have your strategic plan in place, you are ready to implement it. This step is the action phase of the strategic planning process. Start by making everyone involved in the plan aware of your strategy. Ideally, you want to distribute tasks among different individuals or departments to prevent one person or group of people from becoming overwhelmed.

b. Benefits of strategic planning:

1. It allows organizations to be proactive rather than reactive- A strategic plan enables organisations to predict and prepare their future accordingly. Companies can anticipate certain unfavorable situations before they occur through strategic planning and take needed precautions to prevent them. Organizations can be proactive with a powerful strategic plan rather than responding to circumstances as they occur. Being proactive enables organisations to keep up with market trends that are constantly changing and always remain one step ahead of the contest.

2. It sets up a sense of direction- A strategic plan helps to define the direction in which an organization must travel, and aids in establishing realistic objectives and goals that are in line with the vision and mission charted out for it. A strategic plan offers a much-needed foundation from which an organization can grow, evaluate its success, compensate its employees and establish boundaries for efficient decision-making.

3. It increases operational efficiency- A strategic plan offers roadmap management to align the functional operations of the organization to accomplish objectives set. It guides management conversations and decision-making in determining demands for resources and budgets to achieve set goals — thus improving operational efficiency.

4. It helps to increase market share and profitability-

Through a dedicated strategic plan, organizations can get valuable insights on market trends, consumer segments, as well as product and service offerings which may affect their success. An approach that is targeted and well-strategized to turn all sales and marketing efforts into the best possible outcomes can help to increase profitability and market share.