What is Strategic Planning?
Posted in Principles of Management |
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Strategic Planning
In the management terms, the planning is generally of two types
1. The strategic planning
2. The simple planning
The type of the scenario that exists today makes it very necessary to make use of the strategic planning. This type of the planning gives great emphasis on the competitive forecasting but in the old times, planning was mainly done for the raising of the resources and the production but with the changing time, the whole scenario has changed very drastically. Now the strategic planning is much more used than the simple planning as the requirements that need to be fulfilled, cannot be satisfied by the simple planning. In the strategic planning, great emphasis is given on the competitors and offers support only to the change in the concept. So it can be said that the strategic planning does not change much in the conception or in the implementation but stresses more on the study of the environment in terms of the SWOT comprising opportunities and the threats and the organizational weaknesses and the strengths.
Many experts are of the view that for the successful running of the organization and to obtain the profit oriented results, the strategic planning should be a permanent part of the planning process as it not only helps in the allocation of the resources for the various activities but also helps to have the unique resource allocation as compared to the competitors in order to gain a good hold in the market.
Types of the strategies
1. Focused strategy
a. One product or product group or market is focused.
b. Efforts are made to use the resources in a very narrow manner as with this, more success can be obtained in the efforts.
2. Growth strategy
a. This type of the strategy is done with the help of the increase in the product or the market range through the captive expansion, mergers and the acquisitions.
3. Diversification strategy
a. Here one goes for the products or the services which are diverse from the existing lines of the business.
4. Liquidation strategy
a. The decision about the liquidation of the business or transferring a part of it to the outsiders is decided.