Strategic Planning
Strategic planning can be viewed as a systematic long-term planning process used by an organization to establish priorities, improve operations, identify goals, and concentrate on the resources needed and to be allocated in order to implement the strategy and achieve the goals.
It is a step in the strategic management process that makes sure that every element of the business is moving in the proper way to fulfill the organization's objectives.
Strategic planning identifies an organization's purpose, target audience, direction, and the routes that must be taken to achieve its goals. It covers the design of strategies, strategic management model, strategic decision-making, and strategic intent.
Stages of Strategic Planning
- Generation of Strategic Alternatives: In this step, the company looks for a variety of alternative strategies in light of its industry, business, and competitors. These tactics could include market share growth, acquisition and expansion, a focus on core capabilities, etc.
- Assessment of Strategic Alternatives: At this stage, the firm observes various strategies, on the basis of their benefits. It questions:
- Will it improve the firm’s position or market share?
- Will it increase existing strengths?
- Will it bring new opportunities?
- Will it maximise shareholder’s wealth?
- Selection of Strategy: The optimum strategy is selected at this stage, among various alternative strategies.
Both internal and external analysis of the firm is performed during the exercise; wherein internal analysis entails an evaluation of financial performance, operational limitations, current market position/share of corporate culture, strengths and weaknesses.
On the other hand, external analysis concentrates on the analysis of competition, trends, changing business environment, opportunities and threats, latest technology, and so forth.
The Characteristics of Strategic Planning
- Strategic planning is an analytical process that creates organizational strategic and operational plans. While various departments or divisions of the company carry out operational plans, projects can be used to carry out strategic plans.
- It conducts a SWOT analysis, which means that the firm's strengths, weaknesses, opportunities, and threats are taken into account during the planning process.
- The future opportunities and risks of The goal of strategic planning is to create a successful strategy for the organization by logically imagining the desired future and generating numerous alternative actions and decisions. It aids in analyzing and modifying the organization's overall efforts in light of the shifting commercial climate. redetermined while taking into account the company's profitability, market share, product, and competitors.
- It assumes that a company should constantly be prepared to adjust to the changing business environment. Alternative strategies are created for the future with this in mind, going from best to worst-case scenarios.
- Either the entire organization or a specialised business unit can benefit from it.
- It is useful in deciding which strategy, out of the many available strategies, will best serve the interests of the company, the individual, and corporate social responsibility.
- It acts as a guide to the executive to reduce the risk involved in the business and also to take the best possible advantage of the opportunities. So, in this way, it contributes to the success of the enterprise.
Strategic Planning is a logical effort, that envisions the desired future, by producing various alternative actions and decisions, to formulate an effective strategy, that brings success to the organisation. It helps in analysing and adjusting the organisation’s efforts as a whole, according to the changing business environment.
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ERP stands for Enterprise Resource Planning, actually is sustainable use of modern technology combining it with business management practices for a golden future.
Information Technology (IT) incorporate with the core production processes of a company house to rationalize and complete definite business objectives that is pre decided in the company profile.
In simpler words, an ERP is immense software planning that supports the flow and distribution of geologically spread venture among all functional units of a business house.
It offers the business organization executives with a wide-ranging overview of the complete business execution which in turn authorize their decisions in a prolific way.
While Enterprise Resource Planning based on operational system of firm but still it offer various advantages too.
But, later it offers various benefits like it helps to maintain business and focus on growth of firm.
