Introduction

Strategic planning plays a significant role in the success of a business. Strategic management can be understood as an established set of actions as well as strategies which lead to the formulation as well as the application of policies intended to accomplish a business’s goals (Pierce, & Robinson, 2013). Managers can use strategic planning to determine the direction of the organization.

Importance of Strategy Planning in a Business

According to Pierce and Robinson (2013), they define strategy as management’s action plan for running the business and conductions operations. Strategic measures in business integrate preparations for future opportunities, business threats, and market trends. This provides a platform for organizations to evaluate, scrutinize and implement administration in a custom that is most prospective to attain the established objectives. As such, strategizing or preparation must be bounded as the determining management aspect.

Strategic planning plays a role in the accomplishments of firms; has been a topic of detailed study and research for an extended period (Pierce, & Robinson, 2013). It makes sure that objectives are established, first elements are sketched, time and resources are efficiently allocated, an operation is joined, internal environment is set to attain the goals, risks and consequences are concurred upon, and the firm stands to be flexible when attacked by external changes.

As more organizations have come to realize strategic planning is a fundamental aspect for successful outcomes, right strategies are coined in the framework of the three-tier process of strategic management. This structure is a standard hierarchal method of managing a large, wide-spread organization. Each level gradually shows specific activities, temporary and measures focused on with lesser dangers nevertheless littler chances for an intense effect.

The Concept of the Strategic Management (three-tier) Process.

Corporate level strategy

The corporate level strategy bounds activities which are dealing with the set goals of an organization, procurement, and distribution of resources and management of policies of different strategic business units (SBU) for highest performance. The nature of corporate strategic decisions tends to be value-oriented, conceptual as well as less substantial over decisions at the functional level (Langston, & Lauge-Kristensen, 2013).

Business-level strategy

The business level strategy mostly applies in those administrations that have different businesses and each business is handled as a strategic business unit (SBU) (Pierce, & Robinson, 2013). This concept has a fundamental importance for any organization to recognize the distinct self-governing marketplace sections functioned by the business

Functional level strategy

The functional strategy connects with a particular functioning process as well as the activities involved in it. Decision in this unit is termed as deliberate, and these particular pronouncements are directed and controlled by specific tactical concerns (Pierce, & Robinson, 2013)

Importance of having a Future-Oriented Plan

Comprehensive strategies are critical to the operational organization since they function as controllers to all administration purposes. Future-oriented plan helps the organization to focus attention on objectives and results. It centers devotion on objective plus outcomes. Second, it provides a sense of direction. Planning directs human efforts into activities that contributes to achieving organization’s goals (Langston, & Lauge-Kristensen, 2013). Third, future-oriented plan guide decision-making in an organization. The organization’s planned targets serve as a criteria for determining various alternatives so that the best may be chosen.

The Organization Visions, Mission, Purpose, and Goals.

A mission statement covers the organization purpose and primary objectives. Its prime function is to ensure internal and external measures of an organization are accomplished

Vision statements reflect the ideal range of the business in the future. Ensures that the statement communicates both the purpose and value of the organization by projecting the set plans (Langston, & Lauge-Kristensen, 2013). With purpose statement, it defines the business basic philosophy, principles and ideas as well as setting the ethical tone for the organization. On the other hand, managerial goals are the intended objectives that prescribe definite scope and suggests a direction for the planning efforts of an organization.

A Strategic Process as Input for Future Decision-Making

Administrative future decision creating procedure consists of the appropriate and well-organized operation of tactical policies and techniques to accomplish anticipated organization objectives. It seeks to show the implication when a transformation in a particular effort can have on the agreeing output.

References

Langston, C., & Lauge-Kristensen, R. (2013). Strategic management of built facilities. Routledge.

Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition. New York, NY: McGraw-Hill.

 
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