Question

what are the steps involved in the strategic planning process

Answer 1

Meaning of strategic planning: Strategic planning is a future oriented activity which tends to determine the organizational strategy and uses to set priorities.

Strategic planning process: The process of developing and maintaining a strategic fit between the organization goals and capabilities and its changing marketing opportunities. The following steps are included in strategic planning process:

1. Mission, Objectives & Targets

2. Environmental scan

3. Strategy Formulation

4. Action plans or Implementation

5. Performance Tracking and control

1. Mission, Objective & Target:

The mission statement explains the organisation's business imaginative and present vision, comprising the predetermined values and also purpose of the organization.

2. Environmental scan:

The environmental scan involves the following elements:

* An Organisational's internal analysis.

* External macro-environment.

* Analysis of the industry.

3. Strategy Formulation:

To achieve superior market share, sales and profit, the organization needs to build up a competitive advantage over its competitors.

4. Action Plans or implementation:

The choosen strategy is executed through an effective utilisation of resources and also methods.

5. Performance Tracking and control:

To execution of the strategy should be monitored in addition to change brought in as required.