Strategic planning

Here are the key aspects of strategic planning:

Strategy Formulation:

In this step, a company assesses its current situation through internal and external audits. The purpose is to identify strengths, weaknesses, opportunities, and threats (SWOT analysis).

Managers decide which plans or markets to focus on, allocate resources, and consider actions like joint ventures or mergers.

Business strategies have long-term effects on organisational success, and upper management executives typically authorise the necessary resources for implementation.

Strategy Implementation:

After formulating a strategy, the company sets specific targets or goals for putting it into action.

Resources are allocated for executing the strategy effectively.

This step involves translating the strategic plan into actionable steps and ensuring successful execution.

Evaluation and Adaptation:

Regular evaluation of results helps determine whether the strategy is achieving the desired outcomes.

If needed, adjustments are made to the plan to stay aligned with changing circumstances.

Strategic planning is an ongoing process that guides an organisation's intended direction, prioritises efforts, and ensures that goals are backed by data and reasoning.

Benefits of Strategic Planning:

Enhanced communication within the organisation.
Improved performance and efficiency.
Better resource allocation.
Alignment of shareholders and employees.
Data-driven decision-making.