Archive | Strategic Planning

Process of Strategic Planning: 5 Stages | Management

The following points highlight the five main stages involved in the process of strategic planning. The stages are: 1. Objectives 2.  SWOT Analysis 3. Gap Analysis 4.Strategy Alternatives 5.Strategy Implementation.  Stage # 1. Objectives: Both Drucker and Ansoff suggest that the overall objective of the firm is not profit maximisation but long-term profitability. Ansoff has […]

Exam Questions on Strategic Planning | Management

Some frequently asked exam questions on strategic planning are as follows: Q.1. Give the meaning and definition of strategic planning. Ans. Strategic Planning is basically a policy-making function. It is concerned with: (i) Defining the corporation’s purpose, (ii) Defining the composition of its business mix, and (iii) Defining the qualitative and quantitative projection of its […]

Process of Strategic Planning: 3 Levels | Strategic Management

The following points highlight the three levels of strategic planning process. The levels are:- 1. Business Unit Level Planning 2. Product Level Planning 3. Corporate Level Planning. Level # 1. Business Unit Level Planning: When a company produces one product or a set of products so closely related that they belong to the same industry, […]

Top 4 Approaches to Strategic Planning | Management

Fundamentally, there are four different approaches to do formal strategic planning. The approaches are:- 1. Top-Down Approach 2. Bottom-Up Approach 3. Mixture of the Top-Down and Bottom-Up Approaches 4. Team Approach. 1. Top-Down Approach: In a centralised company, such planning is done at the top of the corporation and the departments and outlying activities are […]

Criteria for Evaluating the Strategy of a Firm | Company Management

The strategy adopted by a firm, for the purpose of evaluation as to its effectiveness, should be judged against the following criteria and allied aspects:- 1. Functional Evidence 2. Realism and Practicality 3. Consistency in Direction 4. Assumptions Validity 5. Contingencies Recognition 6. Appropriateness. Criteria # 1. Functional Evidence: (i) What are the performance indicators—quantitative […]

Top 3 Planning Activities Carried out in Firms | Management

The nature and kind of planning activities carried out in firms are discussed as follows:- 1. Strategic Planning Activities 2. Operational Planning Activities 3. Budgetary Planning Activities. Also learn about the relationships among them. 1. Strategic Planning Activities: These are longer-term in nature, involve top-level executives and more global in their effect on the firm. […]

Strategic Planning and Management | Organisation

After reading this article you will learn about:- 1. Introduction to Strategic Planning and Management 2. Definition and Importance of Strategy 3. Meaning of Strategic Planning 4. Focus of Strategic Planning 5. Strategy Formulation 6. Levels of Strategy 7. Strategy Implementation 8. Steps in the Strategic Planning Process 9. Strategic Management. Contents: Introduction to Strategic […]

Strategic Planning: Meaning, Importance and Limitation

After reading this article you will learn about:- 1. Meaning of Strategic Planning 2. Features of Strategic Planning 3. Importance 4. Limitations. Meaning of Strategic Planning: Strategic planning means planning for making and implementing strategies to achieve organisational goals. It starts by asking oneself simple questions like : What are we doing, should we continue […]

Process of Strategic Planning: 8 Steps

This article throws light upon the eight main steps involved in the process of strategic planning. The steps are: 1. Objective Formulation 2. Analyse the Impact of Environment 3. Analyse Resource Position of the Firm 4. Establish Alternative Strategies 5. Evaluate Alternative Strategies 6. Choice of a Strategy 7. Implement the Strategy 8. Measurement and […]

Strategy: Meaning, Features and Evaluation | Organisation

After reading this article you will learn about:- 1. Meaning of Strategy 2. Features of Strategy 3. Styles of Making Strategy 4. Levels/Types 5. Evaluation. Meaning of Strategy: Strategy implies a course of action that defines and achieves organisation’s objectives and implements its missions. Strategy is a means to achieve the goals. In a broader […]