Explain the concept of Strategic Planning in Organization?

The strategic planning is the management activity of the organization that helps to set the priorities, helps in focusing the energy along with the resources, strengthening of the operations, ensuring the working of the employees as well as the co workers towards the common goal with all the dedication and the pain, establishment of agreement around the outcomes or the results that are intended. In order to stay in the business for the longer period of the time every business needs to covert prospects to the closed sales. Marketing itself to the customers who are potential is the strategy of the marketing. The company can have more than one kind of strategy at a time with the help of the various marketing platforms. These marketing platforms include the different kinds like that of networking, the traditional print advertising and digital media. The marketing strategies should be planned well before hand and one can build properly upon them by stopping or adjusting the strategies that are unsuccessful one in the nature. The analysis of the situation is very necessary before making any kind of the strategy. It is necessary to analyse where the business actually sits.

In case the organization is not meeting the revenue goal it is important to find out the reason for it. In order to make the marketing strategies successful it is important to keep the team motivated and fully equipped as well as trained. A lot is revealed by the existing business plan and also the updated data and reports of the organization. The strength, weakness, opportunities and the threats at=re required to be known in order to make the successful business strategies. The potential problems are required to be identified in a proper way. The customer can be the ideal one if the organization is providing the promised outcomes to him. The marketing of the things should lead to its sale to the maximum. The budget made should be used in such a way that all the marketing process results in the profit only. The budget system should be followed strictly else so that all the profits can be kept a close watch. The planning and the strategies are very important in any kind of the organization as it helps to foresee the result of the whole business entity. The strategies along with the planning made are very important to be followed in the business organization. The strategy of the business should be to make the planning of advertising the product to its maximum. The marketing of the product should be made with the help of the latest technologies like that of the social media and through the advanced means so that it can reach to the maximum customers. The business strategies involve the marketing strategies and it can be successful if made while covering all the major aspects of the marketing rules. The planning and the strategies can make the things go smoother and made them very easy to the great extent.

It is the comprehensive collection of the activities that are ongoing and the organization use it systematically to coordinate and align itself and resources as well as actions with objective and the aim of the organization. It helps to transform the static plan to the system which gives the strategic performance feedback to the decision making process. It also helps to enable the plan to evolve and emerge as the needs and other situations or the circumstances changes. The strategy execution is similar to the strategy management and amounts to systematic implementation of the strategy. The different types of the methods are used for the strategic planning and management. The similar attributes and common frameworks are used while at the same time there are no absolute or specific rules regarding this. There are the frameworks that cycle through basic phases that include assessment or analysis in which understanding of the current external and internal environment is developed. It generally involves the setting of the goals that determine the actions and also utilizing the resources at the maximum to extract the best possible from it. The strategy can be planned as a pattern of the activities as the organization adjusts itself according to the competitive of the environment. The strategy includes the process of the implementation and formulation. The planning in the strategic process helps to coordinate the both things. This helps in balancing many other factors in the organization. It is analytical in nature and the strategic formation involves the synthesis itself. It has complete process of inputs, outputs, activities and outcomes. This process has constraints like all the processes. It can be formal, informal or iterative. The some of the elements of the process can be continuous and rest may be considered the discrete process. It gives the inputs for the strategic thinking that guides the actual strategic formulation.

The end result is the organization strategy including the diagnosis of environment. The four key element of the competitive strategy includes strength and weakness of the company, personal values of the key implementers, industry opportunities and threat and broader societal expectations. The first two elements are connected to the internal factors of the organization. On the other hand the latter relates to the external factor to the organization. These things are taken in the consideration throughout the process of strategic planning. The data that is gathered from different sources like interviews, primary research, and industry studies etc acts as the input source in the strategic planning. Inputs are helpful in understanding the competitive environment and its risks and opportunities. The understanding of the values of key stakeholders is considered as another input source. The strategic planning activities include meetings and also the communication process among the leaders of the organization. The output strategic planning includes documentation that describes strategy of the organization. It includes the diagnosis of the competitive situation. The organization can use variety of the methods of measuring and monitoring process. The budget explains all the strategy in a compact form and hence is of very vital importance. The overview of the strategic planning consists of the input, activities, outputs and the outcomes. There are large numbers of the tools and approaches that can be used in the strategic planning. They are created by the management and the companies that consult the firms to provide the framework for strategic planning. The tools that are used for the same are PEST analysis that covers the external factors or the environment like that of political, economical, social as well as technological. The scenario planning was used in military section however recently it was used by the large corporations in order to analyze scenarios of the future. Porter five force analysis addresses attractiveness of industry and rivalry through the bargaining power of the buyers and the suppliers and also the fear of the products that are substitute to the original one along with the new competent and new market entrants. The SWOT analysis addresses the internal strengths and weaknesses relative to the external chances and the fears. The growth share involves the portfolios decision regarding which the business to divest or retain. The balanced score card and strategy maps create a systematic framework for measuring as well as controlling the strategy. The responsive evaluation that uses a constructivist evaluation approach to identify the results of the objectives that in return supports future strategic planning exercise. The extending financial statement projection without any consideration of the environment is a form of financial budgeting and not the strategic planning. The term financial plan is basically used to describe the expected financial performance for the impending periods of the future. The budget is the financial term that is used for the planning of the financial year of the upcoming year. A forecast is typically a combination of actual performance year to date plus expected performance. The financial plans that accompany the strategic plan include three to five years of the projected performance.

The capability maturity model was developed in 1970 in order to explain sophistication of planning process and have the strategic management with the highest rank. The four stages include the steps that are financial planning, forecast based planning, and externally oriented planning and strategic management. The financial planning is all about annual budgets and financial focus with the limited regard for the environment. The forecast based planning that includes multi-year financial plans and capital allocation that are robust across the different kinds of the business units. Externally oriented planning includes the analysis of the situation completely and the assessment of the competition is made. The strategic management is that where the well defined well defined strategic framework is used. The first two categories are under non strategic or essentially financial planning. Every stage is built on the basis on the previous stages and hence the stage four completes the activities in all the four categories. The strategic planning is criticized for attempting the systematic strategic thinking and the strategy formation. The strategic planning helps to coordinate planning efforts and also helps to measure the planning on the goals of the strategy. The strategic planning functions remote from the front lines. He growth planning is also included in the study as the strategic business activity that enables business owners to plan and track organic growth. It allows the business to allocate their resources in a proper way in order to make the proper use of the resources. This helps in bringing the maximum usage and output of the available resources. It allows business to allocate the time and energy in the positive sides. When the implementation of the growth plan is made it is kept in mind to align it with the current organizational structure. If the things are not aligned it is made sure that they aligned properly and the management also bears the authority to question about the adaptation of the organizational structure. The rapid growth can replace pressure on the processes that already exist. In case the processes scalable the management should address the issues before growing as the costs of fixation can be greater afterwards. The business plan focus on the goals of the business and it make sure that key team members work on it properly. The strategic planning has its own importance in the world of business. The main purpose of it is to set the aims and the goals for the business and develop the plans that can be useful for its growth. It is formalized planned and systematic management process. It helps in analyzing the current situation of the business and set priorities to achieve particular goals. If the goals are not clear in one’s mind it can be difficult to make the things achieved with difficulty or also ending up somewhere else. Hence the strategic planning helps to get what one has thought of achieving. The importance of the strategic planning is shown in the term of the measurable goals. The measurable goals are very important as compared to the other things in any type of the organization. They help the managers to evaluate the progress and the developments are paid heed to the great extent. To grow substantially in the coming years it is important to keep the planning up to date and not to be inconsistent. The strategic objectives are of necessary basis as compared to the best information one has about the assessment of the organizations. The strategic planning can be valuable process as make the person in the organization move with the particular kind of vision. The people having planned strategies in their mind can make it easy to grow through the tough times and hence they are able to make the things comparable when the adverse situations are seen. The level of responsibility increases to the great level once one makes the proper planning and he has to move according to the planed things to get the results that are desired. The goals are backed up by realistic benchmarks for the evaluation of the results in the proper manner.