ADVERTIsem*nTS:
Key elements of strategic planning in marketing are: 1. the process strategic 2. the process is about planning 3. the process is disciplined 4. the process is about fundamentals 5. the process is about decision-making 6. it is the long range plan 7. based on operating plan 8. strategic management :
Strategic planning may be defined as “Systematic effort to produce fundamental decisions and actions that shape and guide what a business organisation is, what it does, and why it does it.” The objective of strategic planning is to develop a map by which to manage an organisation’s positioning.
ADVERTIsem*nTS:
Strategic planning is a management tool used to focus the organisational energy, toward the achievement of the common organisational goals, to assess and adjust the organization’s direction in response to a changing environment.
In other words, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organisation is, what it does, and why it does it, with a focus on the future.
Some of the key elements that underlie the strategic planning process:
1. The Process Strategic:
It is strategic process because it involves preparing the best way to respond to the circ*mstances of the organisation’s environment, whether or not its circ*mstances are known in advance. Being strategic means being clear about the organization’s objectives being aware of the organisation’s resources, and incorporating into consciously responsive to a dynamic environment.
2. The Process Is About Planning:
ADVERTIsem*nTS:
It is considered to be related to planning because it involves setting goals (i.e. choosing a desired future) and developing an approach to achieve those goals.
3. The Process Is Disciplined:
Discipline highlights the relationship between the different steps in strategic planning. Mission depends on environment. Strategic planning is also disciplined in that there is a sequence of questions typically raised to examine experience and test assumptions, gather and make use of information about the present, and try to anticipate the future environment the organisation will be working in, it calls for a certain order and pattern to keep it focused and productive.
4. The Process is About Fundamentals:
Strategic planning implies that some organisational decisions and actions are more important than others and that much of the strategy lies in making the tough decisions about what is most important to achieving organisational success.
5. The Process is About Decision-Making:
Strategic planning is based on decision-making because in order to answer the questions raised in the structured planning process, choices must be made. The plan ultimately is no more, and no less, than a set of decisions about what to do, how to do and why to do.
6. It Is The Long Range Plan:
ADVERTIsem*nTS:
Long range is the longest time period for which it makes sense to make plans. The time period varies from organisation to organisation. For most organisations, a 3-5 year time-frame is appropriate for meaningful long range planning.
7. Based On Operating Plan:
Operating plans are the detailed action plans to accomplish the strategic goals laid out in the strategic plan. An organisation should have operating plans for each major organisational unit and correspond to its fiscal year.
8. Strategic Management:
The concept of strategic planning implies managing day to day and month to month, in a way that focuses on the most important decisions and actions. This requires the kind of longer term perspective and priorities which result from a strategic plan. This concept also incorporates the assumption that the environment is always changing; thus, strategic management requires ongoing re-assessment of current plans in light of long term priorities.
