- Stratgic Planning
- Tactical Planning
- Operational Planning
Planning is often needed in a game of chess
3.2 The Nature of Strategic Planning
Strategic Planning
Strategic planning is concerned with the resource requirements of the whole organisation, for the long run. Strategic planning sets the direction for the organisation and amalgamates its activities in achieving those predetermined goals. Strategic planning may also be useful when organisations want to gain acompetitive advantage.
In general, there are 3 steps to the Strategic Planning process. Firstly, there needs to be some strategic analysis. An External Analysis helps to identify the opportunities and threats faced by the organisation from competitors, the business environment and the market.
An Internal Analysis is done to assess the organisation’s strengths and weaknesses by looking at resources and skill available to them. Stakeholder Analysis is done to review the stakeholders’ expectations of the organisation, helping to clarify objectives/goals.
Next, the organisation reviews its Strategic Choice. Here, the basic economic questions are frequently asked. What, how, for whom, where to produce? The organisation has to decide how they are going to compete within the industry. They would also have to know where openings to penetrate the market are. Sometimes, it may be easier for the organisation to simply merge or acquire other organisation. Franchising may also be an option.
The last step is Strategic Implementation. The long term strategy needs to be then translated into plans for marketing, human resources management, IT, production or organisational structure for ease of use.
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