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The Strategic Planning Process

Business Management and Enterprise (Year 12) - Management (U4)

Kanwal Singh

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

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