Question

Explain in detail the principals of strategic planning as well as strategic thinking. What are the elements of a planning cycle?

PLEASE ANSWER IN CORRECT, UNBROKEN ENGLISH. UK ENGLISH IS ACCEPTABLE ALSO.

Answer 1

STRATEGIC PLANNING

Planning means deciding what needs to be done in the future and generating a blueprint for the same. Good planning is an important constituent of good management. Planning involves the determination of the course of action to attain the predetermined objectives.

Strategic Planning - It is the process of determining the objectives of the firm, resources required to attain these objectives and formulation of policies to govern the acquisition and use and disposition of resources. Strategic planning involves a fact of interactive and overlapping decisions leading to the development of an effective strategy for the firm. Strategic planning determines where an organisation is going over the next year or more the ways for going there. The process is organization-wide or focused on a major function such as division or other major function.

ELEMENTS OF PLANNING CYCLE

1. Vision- Vision implies the blueprint of the company's future position. It describes where the organisation wants to land. It depicts the organisation's aspirations and provides a glimpse of what the organisation wants.

2. Mission- Mission delineates the firm's business, it's goals and ways to reach the goals. It explains the reason for the existence of the firm in society. It is designed to help potential shareholders and investors understand the purpose of the company.

3.Business Definition- It seeks to explain the business undertaken by the firm, with respect to customer needs, target markets, and alternative technologies. With the help of business definition, one can ascertain the strategic business choices.

4.Business Model- Business model, is a strategy for the effective operation of the business, ascertaining sources of income, desired customer base and financial details.

5.Goals and Objectives- These are the base of measurement. Goals are the end result that the organisation attempts to achieve.nOn the other hand, objectives are time- based measurable targets which help in the accomplishment of goals. These are end results of the planning cycle which are to be attained with the help of an overall plan over a period of time.