Strategic planning:
- Strategic planning is comprehensive plan to identify the best approach or strategy for achieving organizational goals.
- It addresses three main areas: distinctive competence (something in which organization does exceptionally well), scope (range of market in which organization will compete), and resource deployment (how will it distribute resources across areas in which it competes).
- It involves review of external and internal forces that lead to specific opportunity and threat facing the organization to define the strategy, or direction, and making decisions on allocation its resources to pursue the developed strategy.
- Strategic management: a comprehensive and ongoing management process aimed at formulating and implementing effective strategies; it defines way of approaching the business opportunities and challenges.
- There are five phases in strategic planning:
- Situation analysis:
- Formulation of mission, goals , and objectives:
- Strategy formulation:
- Strategy implementation:
- Strategic control:
Situation analysis:
- Helps to study past events, understand current trends, and attempts to forecast future trends.
- The two methods are:
Environmental scanning:
- It is the method of acquiring information and analyzing trends emerging in the environment. OR monitoring and evaluation of information from the organization internal and external environment which are used for defining future courses of action.
- Steps in environmental scanning are:
- Identify potentially relevant environmental changes:
- Monitoring the nature and direction of change.
- Forecasting the probability of impact:
- Developing and implementing strategic response
SWOT analysis:
- It was developed by Albert Humphrey. This analysis help to make optimal match between the external opportunities and threats, with the organizational strength and weakness. The matching of the internal and external environment is essential for developing appropriate strategy.
- It involves specifying the objective of the business venture or project and identifies the internal and external factors that are favorable and unfavorable to achieve that objective.
- It focuses on:
- Strengths: characteristics of the business, or project team that give it an advantage over others
- Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others
- Opportunities: external chances to improve performance (e.g. make greater profits) in the environment
- Threats: external elements in the environment that could cause trouble for the business or project
- S-O strategies pursue opportunities that match the company’s strengths. These are the best strategies to employ, but many firms are not in a position to do so. Companies will generally pursue one or several of the other three strategies first to be able to apply Strengths-Opportunities strategies.
- W-O strategies overcome weaknesses to pursue opportunities. Your job is to match internal weaknesses with external opportunities and list the resulting Weaknesses-Opportunities strategies
- S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. Your job is to match internal strengths with external threats and list the resulting Strengths-Threats Strategies
- W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it susceptible to external threats. Your job is to match the internal weaknesses with external threats and record the resulting Weaknesses-Threats Strategies
Tools to aid planning:
- They are the planning tool for forecasting the future in order reduces the uncertainty. Planning uses two types of tools:
- Qualitative techniques:
- Informed judgment: Planner makes field visit, collects information, analyzes the information, and make judgment about the future.
- Scenario Analysis: Expert develops the future scenario. Stating: best case, worst case, and most likely case. Planner anticipates future changes on the basis of these scenarios.
- Delphi Method: Panels of expert are asked to submit a report, which is later discussed and carefully studied, to determine the change in future.
- Quantitative techniques:
- Single projection method: current years forecast is determined by adding the last year’s forecast.
- Extrapolation method: The technique require information from past to explore the future.
- Moving average method: helps to forecast by eliminating the effects of seasonality and other irregular trend.
- Time series method: A time series is a collection of observations of well-defined data items obtained through repeated measurements over time
Strategic Planning is a comprehensive process for determining what a business should become and how it can best achieve that goal. It appraises the full potential of a business and explicitly links the business's objectives to the actions and resources required to achieve them. Strategic Planning offers a systematic process to ask and answer the most critical questions confronting a management team—especially large, irrevocable resource commitment decisions.
ReplyDeleteStrategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy.
ReplyDelete"What do we do?"
"For whom do we do it?"
Strategic planning is one specific type of planning and also a tool for organizing the present on the basis of the projections of the desired future. It is the riad mao to lead the organization and these plan is written and concrete expressions of an organization's basic direction.
ReplyDeleteSutuational analysis is the beginning of planning which studies past events, examines current conditions and attempts to firecast future trends. There are two major methods of undertaking situational analysis:
1) Environmental Scanning: It is the integral part of the process of the strategic planning which is the method or technique of acquiring information analyzing the trends emerging in the environmentor we can say environmental planning involves the monitoring and evaluation of information from the organization's internal and external environments.
2)SWOT Analysis: It is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
Tools to Aid Planning: planning uses two types of tools which includes qualitative techniques and quantitative techniques. Qualitative techniques are intended to complement formal and quantitative methods. They are particularly useful when few or no hard data is available forcasting . Besides qualitative or judgementl methods , a wide variety of analytical and quantitative methods is available for forecasting.
Strategic Analysis is a process you can use to determine the best way to achieve the result you or your organization desire, by choosing the path of least resistance to bring about change. By doing a Strategic Analysis, your team will create alternatives to bring about the desired result by emphasizing the driving forces, and lessening the resistant ones.Strategic analysis makes the use of tools such as SWOT analysis, PEST analysis.
ReplyDeleteSWOT analysis
A SWOT analysis is a simple but widely used tool that helps in understanding the
strengths, weaknesses, opportunities and threats involved in a project or business
activity.
It starts by defining the objective of the project or business activity and identifies
the internal and external factors that are important to achieving that objective.
strengths and weaknesses are usually internal to the organisation, while
opportunities and threats are usually external. Often these are plotted on a
simple 2x2 matrix.
PEST analysis
PEST analysis is a scan of the external macro-environment in which an
organisation exists. It is a useful tool for understanding the political, economic,
socio-cultural and technological environment that an organisation operates in. It
can be used for evaluating market growth or decline, and as such the position,
potential and direction for a business.
Political factors. These include government regulations such as employment
laws, environmental regulations and tax policy. Other political factors are trade
restrictions and political stability.
Economic factors. These affect the cost of capital and purchasing power of an
organisation. Economic factors include economic growth, interest rates, inflation
and currency exchange rates.
Social factors. These impact on the consumer’s need and the potential market
size for an organisation’s goods and services. Social factors include population
growth, age demographics and attitudes towards health.
Technological factors. These influence barriers to entry, make or buy decisions
and investment in innovation, such as automation, investment incentives and the
rate of technological change.
PEST factors can be classified as opportunities or threats in a SWOT analysis. It is
often useful to complete a PEST analysis before completing a SWOT analysis.
Strategic planning:Strategic Planning is a management tool that helps an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future.
ReplyDeleteswot analysis:The point of a SWOT analysis is to help you develop a strong business strategy by making sure you’ve considered all of your business’s strengths and weaknesses, as well as the opportunities and threats it faces in the marketplace.
ReplyDeleteThere are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc. For example, there are a variety of strategic planning models, including goals-based, issues-based, organic, scenario (some would assert that scenario planning is more of a technique than model), etc.
ReplyDelete1) Goals-based planning is probably the most common and starts with focus on the organization's mission (and vision and/or values), goals to work toward the mission, strategies to achieve the goals, and action planning (who will do what and by when).
2) Issues-based strategic planning often starts by examining issues facing the organization, strategies to address those issues and action plans.
3) Organic strategic planning might start by articulating the organization's vision and values, and then action plans to achieve the vision while adhering to those values. Some planners prefer a particular approach to planning, eg, appreciative inquiry.
Some plans are scoped to one year, many to three years, and some to five to ten years into the future. Some plans include only top-level information and no action plans. Some plans are five to eight pages long, while others can be considerably longer.
Quite often, an organization's strategic planners already know much of what will go into a strategic plan (this is true for business planning, too). However, development of the strategic plan greatly helps to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more important than the strategic plan document, is the strategic planning process itself.
Also, in addition to the size of the organization, differences in how organizations carry out the planning activities are more of a matter of the nature of the participants in the organization -- than its for-profit/nonprofit status. For example, detail-oriented people may prefer a linear, top-down, general-to-specific approach to planning. On the other hand, rather artistic and highly reflective people may favor of a highly divergent and "organic" approach to planning.
Strategic planning is a vital part of strategic management. A strategic plan consists of clearly stated organizational mission, organizational goals, and organizational strategic. Strategic planning involves the review of external and internal forces that lead to the specific opportunities and threats facing the organization. It is a process of determining how to pursue the organization’s long-term goals with the resources expected to be available.
ReplyDeleteImportant phases in the strategic planning are discussed below :-
Situational Analysis:-
It is the primary step of planning. Planning begins with a situation analysis. This analysis studies past events, examines currents conditions and attempts to forecast future trends. There are two major methods of understanding situational analysis.
1. Environmental scanning : It is an integral part of the process of strategic management. Environmental scanning is the method or technique of acquiring information and analyzing the trends emerging in the environment.
2. SWOT Analysis:- SWOT stands for strengths, Weakness, opportunities and threats. It is one of the important step in formulating a strategy. In view of the organization’s mission, managers assess internal strengths(core competencies) and weaknesses, and external opportunities and threats.
Strategic planning is a vital part of strategic management. A strategic plan consists of clearly stated organizational mission, organizational goals, and organizational strategic. mportant phases in the strategic planning are below :-
ReplyDelete1Situational Analysis
2Environmental scanning
3SWOT Analysis
Strategic planning
ReplyDeletestrategy:-it is long term plan in the form of tactic, policy, manupulation, and game plan.
strategic management:- it is proper arrangement of activities which are related with strategic position analysis, strategic alternative creation, strategic alternative evaluation, and strategic selection and implementation.
strategic decision:- it is selecting one of the best strategies to implement and cope with the environmental change and accomplish the organizational goals and objectives.
Situational analysis
it is environmental analysis made for finding the situation of organization and the environmental trend. this analysis studies past events, examines current conditons, and attempts to forecast future trends. the situation analysis is made in two techniques:
1)Environmental analysis:-the gathering of large amount of information to measure and study the changes in the environment is callege environment scanning.
2)SWOT analysis:-it is a strategic planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a busines venture.
Tools to Aid Planning: planning uses two types of tools which includes qualitative techniques and quantitative techniques. Qualitative techniques are intended to complement formal and quantitative methods. They are particularly useful when few or no hard data is available forcasting . Besides qualitative or judgementl methods , a wide variety of analytical and quantitative methods is available for forecasting.
Strategic Analysis is a process you can use to determine the best way to achieve the result you or your organization desire, by choosing the path of least resistance to bring about change. By doing a Strategic Analysis, your team will create alternatives to bring about the desired result by emphasizing the driving forces, and lessening the resistant ones.Strategic analysis makes the use of tools such as SWOT analysis, PEST analysis.
ReplyDeleteSWOT analysis
A SWOT analysis is a simple but widely used tool that helps in understanding the
strengths, weaknesses, opportunities and threats involved in a project or business
activity.
It starts by defining the objective of the project or business activity and identifies
the internal and external factors that are important to achieving that objective.
strengths and weaknesses are usually internal to the organisation, while
opportunities and threats are usually external. Often these are plotted on a
simple 2x2 matrix.
PEST analysis
PEST analysis is a scan of the external macro-environment in which an
organisation exists. It is a useful tool for understanding the political, economic,
socio-cultural and technological environment that an organisation operates in. It
can be used for evaluating market growth or decline, and as such the position,
potential and direction for a business.
Political factors. These include government regulations such as employment
laws, environmental regulations and tax policy. Other political factors are trade
restrictions and political stability.
Economic factors. These affect the cost of capital and purchasing power of an
organisation. Economic factors include economic growth, interest rates, inflation
and currency exchange rates.
Social factors. These impact on the consumer’s need and the potential market
size for an organisation’s goods and services. Social factors include population
growth, age demographics and attitudes towards health.
Technological factors. These influence barriers to entry, make or buy decisions
and investment in innovation, such as automation, investment incentives and the
rate of technological change.
PEST factors can be classified as opportunities or threats in a SWOT analysis. It is
often useful to complete a PEST analysis before completing a SWOT analysis.
1. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes.[1]
ReplyDeleteStrategy has many definitions, but generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources). The senior leadership of an organization is generally tasked with determining strategy. Strategy can be planned (intended) or can be observed as a pattern of activity (emergent) as the organization adapts to its environment or competes.
Strategy includes processes of formulation and implementation; strategic planning helps coordinate both. However, strategic planning is analytical in nature (i.e., it involves "finding the dots"); strategy formation itself involves synthesis (i.e., "connecting the dots") via strategic thinking. As such, strategic planning occurs around the strategy formation activity
3. The Plan document
For getting a planned document, all the above steps are performed and during this, one particular thing to kept in mind is that the plan must start with the broader objectives and must be linked stepbystep to the actionable and the implementation activity. The plan document must consist of the following -
a. Premising – This step is needed at the each stage of the planning. Before undertaking the plan, the strength, the weakness, the opportunity and the threats (SWOT) can be calculated depending on the premises.
b. Vision – The way in which we visualize our future.
c. Mission – What we aim to deliver to the beneficiaries.
d. Policy – What restrictions on means we will note during the execution of the plan.
e. Objectives – What we will keep as the broad directions for the achievement.
f. Goals – Translate the objectives into the quantitative and the financial goals, which can be achieved by the operational people.
g. Procedures – To prioritize and then draw the sequence of the action.
h. Budget – Convert to the money terms in order to establish the standards for the evaluation.
4. The program
Whenever any activity is carried out, it is carried out to achieve one thing or the other. But the results that one expects to be obtained must be achieved in the proper frame of the time, so that they can be used at the right time for various other activities. Hence, in order to get the results within the certain time frame, a program is drawn.
The projects of the diverse nature within a subject are included in the program. The program is actually a clubbing together of the things and for getting a good view of the word program, it can be understood as the plan document on a much wider scale than the planning document.
Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes.
ReplyDeleteStrategy has many definitions, but generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions. A strategy describes how the ends (goals) will be achieved by the means (resources). The senior leadership of an organization is generally tasked with determining strategy. Strategy can be planned (intended) or can be observed as a pattern of activity (emergent) as the organization adapts to its environment or competes.
Strategy includes processes of formulation and implementation; strategic planning helps coordinate both. However, strategic planning is analytical in nature (i.e., it involves "finding the dots"); strategy formation itself involves synthesis (i.e., "connecting the dots") via strategic thinking. As such, strategic planning occurs around the strategy formation activity.
-Strategic planning: This plan is prepared by the top level management by considering the long term objectives of the organization. It clearly defines objectives of the organization and strategies to achieve the defined goal. The strategic planning may concern with product or service, market, competition, social responsibility etc. It is based on analysis of future opportunities and threats.
ReplyDelete-Situational Analysis: Situational analysis is the beginning of planning which studies past events, examines current conditions and attempts to forecast future trends. There are two major methods of undertaking situational analysis:
1. Environmental Scanning: It is the integral part of the process of the strategic planning which is the method or technique of acquiring information analyzing the trends emerging in the environmental we can say environmental planning involves the monitoring and evaluation of information from the organization's internal and external environments.
2. SWOT Analysis: It is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results.
-Tools to Aid Planning: planning uses two types of tools which includes qualitative techniques and quantitative techniques. Qualitative techniques are intended to complement formal and quantitative methods. They are particularly useful when few or no hard data is available forecasting . Besides qualitative or judgemental methods, a wide variety of analytical and quantitative methods is available for forecasting.
There are a variety of perspectives, models and approaches used in strategic planning. The way that a strategic plan is developed depends on the nature of the organization's leadership, culture of the organization, complexity of the organization's environment, size of the organization, expertise of planners, etc. For example, there are a variety of strategic planning models, including goals-based, issues-based, organic, scenario (some would assert that scenario planning is more of a technique than model), etc.
ReplyDelete1) Goals-based planning is probably the most common and starts with focus on the organization's mission (and vision and/or values), goals to work toward the mission, strategies to achieve the goals, and action planning (who will do what and by when).
2) Issues-based strategic planning often starts by examining issues facing the organization, strategies to address those issues and action plans.
3) Organic strategic planning might start by articulating the organization's vision and values, and then action plans to achieve the vision while adhering to those values. Some planners prefer a particular approach to planning, eg, appreciative inquiry.
Some plans are scoped to one year, many to three years, and some to five to ten years into the future. Some plans include only top-level information and no action plans. Some plans are five to eight pages long, while others can be considerably longer.
Quite often, an organization's strategic planners already know much of what will go into a strategic plan (this is true for business planning, too). However, development of the strategic plan greatly helps to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more important than the strategic plan document, is the strategic planning process itself.
Also, in addition to the size of the organization, differences in how organizations carry out the planning activities are more of a matter of the nature of the participants in the organization -- than its for-profit/nonprofit status. For example, detail-oriented people may prefer a linear, top-down, general-to-specific approach to planning. On the other hand, rather artistic and highly reflective people may favor of a highly divergent and "organic" approach to planning.
Strategic planning is a process and thus has inputs, activities, and outputs. It may be formal or informal and is typically iterative, with feedback loops throughout the process. Some elements of the process may be continuous and others may be executed as discrete projects with a definitive start and end during a period. Strategic planning provides inputs for strategic thinking, which guides the actual strategy formation. The end result is the organization's strategy, including a diagnosis of the environment and competitive situation, a guiding policy on what the organization intends to accomplish, and key initiatives or action plans for achieving the guiding policy.
ReplyDeleteThere are five phases in strategic planning:
Situation analysis:
Formulation of mission, goals , and objectives:
Strategy formulation:
Strategy implementation:
Strategic control: