The strategic planning process is an organisation’s process of defining its long-run strategy. It involves making decisions on allocating its physical, financial and human resources to pursue this strategy. Management often collaborates to plan and set long-term goals, as well as methods for achieving them. To determine the future direction of a company, they need to understand where they are currently and different modes for improvement.

Strategic planning tends to answer the following questions:

• What do we do?

• For whom do we do it for?

• How do we excel?

There are many reasons why businesses create strategic plans:

• It allows them to develop and maintain a competitive advantage

• It contribute to long-term success, however it does not guarantee it

• Identifies how much capital is needed and ways to acquire it

• Allocates resources to their most efficient and effective use