WStrategy is a detailed, comprehensive, and integrated plan designed to assure that the mission and objectives of the organization are met.
Strategic planning provides the foundation for all managerial decisions.
The dynamic process of strategic planning is the umbrella under which all management functions fall. Without the benefit of strategic planning, organizations in general and people in particular have no clear way to evaluate the purpose or direction of group enterprise. The strategic planning process provides a framework to guide the members of the organization.
WStrategic planning is the set of actions and decisions made by management that lead to the development of specific strategies designed to help the organization achieve its objectives.
The strategic planning process is a tool to aid managerial decision making. Its purpose is to ensure sufficient levels of innovation and change in an organization. There are four major managerial activities within the strategic planning process. These activities are:
Worganizational strategic awareness.
Resource Allocation. This process includes the allocation of scarce organizational resources such as funds, critical management talent, and technological expertise.
Environmental Adaptation. Adaptation should be interpreted in a broad sense. It covers all strategic actions that improve the company's relations to its environment. Companies need to adapt to environmental opportunities and threats, identify relevant options, and provide for an effective strategic fit with the environment. The strategic planning of successful businesses deals with the creation of new opportunities through development of superior product systems, through interaction with government and society at large, and so on.
Internal Coordination. This involves coordinating strategic activities to reflect the firm's internal strengths and weaknesses in order to achieve the efficient integration of internal operations.
Organizational Strategic Awareness. This activity involves instilling a systematic management development approach by building an organization that can learn from the outcomes of its past strategic decisions. Learning from the pastenables the organization to improve its strategic direction and strengthen its professionalism with respect to strategic management.
Nature of Strategy
wThe word strategy evolved from the Greek strategos, "the art of the general." The military background of the word should be no surprise. It was strategos that allowed Alexander the Great to conquer the world.
wStrategy is a detailed, comprehensive, and integrated plan designed to assure that the mission and objectives of the organization are met.
wThe strategic plan must be supported by extensive research and factual data. In order to compete effectively in today's business environment, a firm must commit itself to gathering and analyzing tremendous amounts of information about the industry, market, competition, and other factors.
wThe strategic plan gives an identity, a personality, to the firm that allows it to attract certain types of employees, as well as not to attract other types. The plan becomes the vision for the organization that guides its employees, attracts new employees, and sells products or services.
Nature of Strategy
wFinally, strategic plans must be designed not only to remain intact for long periods of time, but also to be flexible enough to allow modification and redirection as needed. The overall strategic plan should be viewed as a blueprint that will guide the firm for an extended period of time, with the understanding that a competitive and ever-changing business and social environment makes continual adjustments inevitable.