The paper 'Importance of Managing Strategies and Strategic Planning" is a great example of management coursework. Strategic planning is a very important component of the success of an organization either profit earning or non-profit earning organization. It is a means in which an organization uses as its framework for making decisions (David, 2002). An organization gets a detailed plan to run its activities, it acts as a way of advertising the business to the world for the purposes of informing, involving and motivating both employees, customers, and stakeholders (Thompson & Martin, 2005).
It is a way of assisting in performance monitoring and benchmarking, is the means by which the organization stimulates change as well as it is the building block used for initiating the next needed plan for the organization. Managing Strategies and Strategic Planning Strategic planning refers to the process of strategically and systematically planning or rather prospecting where the business will be in a specified period of time (Paauwe, 2009). It involves a number of steps, which are important in identifying the current, as well as the future situation of the business (David, 2002).
It clearly defines the business or the organization's objectives as well as the external and the internal situation so that the management of the business can formulate a strategy, implement it, evaluate all the process, as well as make the needed adjustment as far as the success of the business is involved. It is the strategy that the business management uses to allocate resources both the finances and the human resources (Hill & Jones, 2007). The strategic approach introduces frameworks and models such as PEST analysis, STEER analysis, SWOT analysis, and EPISTLE analysis.
It is the strategy that answers the following three main questions: what is to be done, whom the work is being done to and how to excel (David, 2002). Strategic planning is a tool that gives the business or the organization an effective direction to follow in order to realize its goals and objectives (Paauwe, 2009). The strategy works hand in hand with the strategic innovation, which enables the business to thrive in the harsh business climatic condition in existence in the world. There is a very great difference between a strategic plan and a business plan (Paauwe, 2009).
A strategic plan is basically very short in terms of the contents it contains as compared to the business plan which is a huge document containing a lot of details like the strategies of pricing, market segmentation, description of the location of the business alongside the disadvantages and advantages of marketing in that place. It also contains the budget of the advertisement and the promotion strategy. Finally, it contains a detailed description of the service and the product including the entire features that are special about it.
The strategic plan contains the framework as well as the foundation of the business the organization is to be involved in. it is important to note that the strategic plan is also not the same as the operation plan. The strategic plan is more visionary, directional and conceptual (David, 2002). A good strategic plan should be SMART meaning it should be specific, measurable, attainable and very realistic. This is for enabling the managers or the entrepreneurs to get to think strategically as well as act operationally.