Business planning strategy

A variety of strategic planning tools described in the section below may be completed as part of strategic planning activities. What is considered "value" to the customer or constituency? Which products and services should be included or excluded from the portfolio of offerings?

Business planning strategy

Michael Porter [5] Strategic planning activities include meetings and other communication among the organization's leaders and personnel to develop a common understanding regarding the competitive environment and what the organization's response to that environment its strategy should be. A variety of strategic planning tools described in the section below may be completed as part of strategic planning activities.

The organization's leaders may have a series of questions they want answered in formulating the strategy and gathering inputs, such as: What is the organization's business or interest?

What is considered "value" to the customer or constituency? Which products and services should be included or excluded from the portfolio of offerings?

What is the geographic scope of the organization? What differentiates the organization from its competitors in the eyes of customers and other stakeholders? Which skills and resources should be developed within the organization? The strategy may include a diagnosis of the competitive situation, a guiding policy for achieving the organization's goals, and specific action plans to be business planning strategy.

The organization may use a variety of methods of measuring and monitoring progress towards the objectives and measures established, such as a balanced scorecard or strategy map.

Companies may also plan their financial statements i. The term operational budget is often used to describe the expected financial performance of an organization for the upcoming year. Capital budgets very often form the backbone of a strategic plan, especially as it increasingly relates to Information and Communications Technology ICT.

Outcomes[ edit ] Whilst the planning process produces outputs, as described above, strategy implementation or execution of the strategic plan produces Outcomes. These outcomes will invariably differ from the strategic goals. How close they are to the strategic goals and vision will determine the success or failure of the strategic plan.

There will also arise unintended Outcomes, which need to be attended to and understood for strategy development and execution to be a true learning process. Tools and approaches[ edit ] Video explaining the strategic plan of the Wikimedia Foundation Wikimedia Movement Strategic Plan PDF A variety of analytical tools and techniques are used in strategic planning.

Responsive Evaluationwhich uses a constructivist evaluation approach to identify the outcomes of objectives, which then supports future strategic planning exercises. In business, the term "financial plan" is often used to describe the expected financial performance of an organization for future periods.

The term "budget" is used for a financial plan for the upcoming year. A "forecast" is typically a combination of actual performance year-to-date plus expected performance for the remainder of the year, so is generally compared against plan or budget and prior performance. The financial plans accompanying a strategic plan may include 3—5 years of projected performance.

Significance

The four stages include: Financial planning, which is primarily about annual budgets and a functional focus, with limited regard for the environment; Forecast-based planning, which includes multi-year financial plans and more robust capital allocation across business units; Externally oriented planning, where a thorough situation analysis and competitive assessment is performed; Strategic management, where widespread strategic thinking occurs and a well-defined strategic framework is used.

Categories 3 and 4 are strategic planning, while the first two categories are non-strategic or essentially financial planning. Each stage builds on the previous stages; that is, a stage 4 organization completes activities in all four categories.How to write business plans, marketing plans, marketing and business strategy, with free templates, samples and examples plus more free materials for management, communications, and organizational development.

Oct 30,  · Strategic planning Digital Corporate strategy, the overall plan for a diversified company, is both the darling and the stepchild of contemporary management practice—the darling because CEOs.

Basic Approach to Strategic Planning. A critical review of past performance by the owners and management of a business and the preparation of a plan beyond normal budgetary horizons require a certain attitude of mind and predisposition. Aug 29,  · Find new ideas and classic advice for global leaders from the world's best business and management experts.

Strategic planning. Follow this topic. If "the essence of strategy is choosing. What is Strategic Planning? Strategic planning is an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations, ensure that employees and other stakeholders are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization's direction in response to a changing environment.

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business planning strategy
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