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INTRODUCTION
Strategy is a unified, comprehensive and integrated plan designed to ensure that the basic
objectives of the enterprise are achieved.
-Glueck and Jauch
A strategy is a comprehensive plan of action that sets a critical direction and guides the
allocation of resources to achieve long term organisational objectives.
STRATEGIC PLANNING
Strategic planning means to analyse the current and expected future situation, determine the
direction of the firm, and develop means(resources) for achieving the mission.
-Koontz & Weihrich
Strategic planning is a process undertaken by an organization to develop strategies for
achievement of its overall long-term organizational goals. The purpose of strategic planning is to
help organisations to achieve competitive advantage.
Strategic planning is a tool for organizing the present on the basis of the projections of
the desired future. That is, a strategic plan is a road map to lead an organization from where it is
now to where it would like to be in five or ten years. It is necessary to have a strategic plan for
your organization. In order to develop a comprehensive plan for your organization which would
include both long- range and strategic elements, we suggest the methods and mechanisms
outlined in this manual. The plan must be: simple, written, clear, based on the real current
situation, and have enough time allowed to give it a time to settle. It should not be rushed.
Rushing the plan will cause problems.
Strategic Planning seeks the answer for four basic questions:
Q. Where are we?
A. Stuaton analyss
A. Vson,msson, goals
A. Performance evaluaton
Strategic planning is done for internal as well as external environment of the organisation.
INTERNAL ENVIRONMENT:
EXTERNAL ENVIRONMENT
Socio-cultural factors
Competitive factors
Political factors
Technological factors
Legal factors
STEP I
Analysis of the current state
STEP II
Defining the future state.
STEP III
Create strategic plans to accomplish purpose and objectives.
STEP IV
Implement the strategic plans.
STEP V
Evaluate results and renew the strategic planning process as necessary.
Environment analysis.
Resource analysis.
Implementation of plans.
STEP V Evaluate results and renew the strategic planning process as necessary.
LEVELS OF STRATEGIES
Corporate strategy sets long term direction for the total enterprise. The question, What
business are we in? concerns corporate-level strategy. Corporate-level strategy pertains to
the organization as a whole and the combination of business units and product lines that
make up the corporate entity. Strategic actions at this level usually relate to the acquisition
of new businesses; additions or divestments of business units, plants, or product lines; and
joint ventures with other corporations in new areas.
Business strategy identifies how a division or strategic business unit will compete in its
product or service domain. The question, How do we compete? concerns business-level
strategy. Business-level strategy pertains to each business unit or product line. It focuses on
how the business unit competes within its industry for customers. Strategic decisions at the
business level concern amount of advertising, direction and extent of research and
development, product changes, new-product development, equipment and facilities, and
expansion or contraction of product lines.
Functional strategy guides activities within a specific functional area of operations. The
question, How do we support the business-level competitive strategy? concerns
functional-level strategy. It pertains to the major functional departments within the business
unit. Functional strategies involve all of the major functions, including finance, research
and development, marketing, and manufacturing.
CONCLUSION