Question

What are the three major steps to strategic framework planning?

Answer 1

There are a number of elements of the process which are spread across the strategic planning stages. Manly the three phases of the strategic planning process are strategic analysis, strategy formulation, implementation and monitoring

Strategic Analysis:- In this phase, the company is required to establish its mission and vision and examine its internal and external environment and appraise its competitors. Internal analysis mainly includes assessment of the company’s resources, core competencies and activities. In this, the company can use the following tools:-

PEST, SWOT, Core Competencies, Critical Success Factors, Unique Selling Proposition, Porter's 5 Forces, Competitor Profile Matrix, External Factor Evaluation Matrix, Internal Factor Evaluation Matrix, Benchmarking, Financial Ratios, Scenarios Forecasting, Market Segmentation, Value Chain Analysis, VRIO Framework

Strategy Formulation:- Successful situation analysis should be followed by the development of long-term objectives. Long-term objectives mainly include goals and objectives that could advance the company’s competitive position in the long run. There are mainly 3 different levels of strategy which are Business level, Corporate Level, and International Strategy

Strategy implementation and monitoring:-

Implementation requires below-mentioned steps:-

• Setting annual objectives;
• Revising policies to meet the objectives;
• Allocating resources to strategically important areas;
• Changing organizational structure to meet new strategy;
• Managing resistance to change;
• Introducing new reward system for performance results if needed.

As there are a constantly changing external and internal conditions thus there is a requirement that managers must constantly assess both environments as new strengths, weaknesses, opportunities, and threats which might arise. If new circumstances affect the company, managers must take corrective actions as soon as possible