The paper "Strategic Planning and Its Importance to Businesses" is a wonderful example of a Management Case Study. The business world is becoming more competitive by the day. The entry of new firms into various industries is threatening the market positions of the incumbent firms. With technology advancing and changing every day, it is obvious that organizations are coming up with different ways to gain from the same. Worth mentioning is the actuality that organizations are currently coming up with different long term plans that tend to describe their future endeavors and unique ways of achieving such long term efforts and goals (Wittmann and Matthias 46).
The process of coming up with such long term direction-defining goals is referred to as strategy formulation. The strategic team of an organization will in most cases tries to come with the most effective strategy through employing various methods. Perhaps the most prominent strategies used in coming up with strategy include SWOT analysis, Porter’ s five forces model, scenario planning, and benchmarking. Notably, organizations use all these techniques so as to understand the market and the prevailing situations before making primary decisions.
This paper endeavors to discuss the concept of strategy planning, and why strategic plans are important to organizations. Strategic planning Strategic planning refers to the process of coming up with long term projections relating to the expected position of an organization in the market. Apparently, decisions can only be termed as strategic if such decisions relate to a period of more than twelve months. Worth mentioning at this point is the reality that strategic planning relates to major direction-defining decisions, usually relating to such decisions as, the decisions to merge a business and so on (Henry 37).
Strategic planning takes quite a long time considering that it calls for thorough and meticulous environmental scanning. Strategic planning defines the link between the status quo and the long term targets of an organization. The link between the two is a detailed plan on how to take the organization to the next level. Such a plan referred to as strategy as it describes a large part of the organizational mission. The main factors or pillars of strategic planning in an organization are vision, mission, strategy, and values.
These are referred to as pillars of strategy making as they define the long term goal and come up with ways of achieving such goals. Vision The vision of an organization is the individual level equivalent of resolutions. Essentially, a vision is an ideal visualization of the state of affairs of an organization in the future. Vision varies from one organization to another. Even so, all visions have some characteristics in common. For instance, all visions are time-bound. This means that the vision should have a particular time which, ceteris paribus, the organization shall have moved from the status quo to the ideal state (Haberberg and Alison 146).
Noteworthy is the point that a vision is a statement reflecting the wishes and projections of the strategic team. A good example of a vision would be something like: to be the market leader by 2030, constantly meeting and exceeding customer expectations.
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