what is strategic planning?

Question

Advantages and disadvantages for a company use strategy planning. Which level in a company will use it and how to use it.

Answer 1

By definition strategic planning is long term planning that focuses on high level strategies, ignoring day to day details of operations. Components of a typical strategic plan would include:

1. A mission statement which defines the purpose of the corporation or entity.

2. A broad statement of corporate goals.

3. A financial plan typically of 5 years or more. Key elements of this is how financing will be acquired and large capital projects it will be spent on.

4. Goals and metrics which with the plan will be measured and monitored. This is often more than just financial (profit) and includes social responsibility type goals, human resource goals, and even goals in regards to service and customer retention.

By definition a strategic plan is developed almost exclusively at the executive or senior management level, and is implemented from the top down. The use is implemented through policies, procedures, and rules in addition to measuring, monitoring, and possibly auditing to ensure compliance in achieving and succeeding in goals developed from the plan.

Answer 2

simply put, strategic planning determines where an organization is going over the next year or more and how it's going to get there. Typically, the process is organization-wide, or focused on a major function such as a division, department or other major function. Basically strategic planning is what will separate you from your competitors a good strategy will put you well above your competitors.