Strategic Planning is the long range planning that focuses on the organization as a whole. In doing strategic planning, managers consider the organization as a total unit and ask themselves what must be done in the long term( 3 to 5 years) to attain organizational goals.
In strategic planning, managers try to determine what their organization should do to be successful 3 – 5 years from now. The most successful managers tend to be those who are capable of encouraging innovative strategic thinking within their organization.
Strategy is defined as a broad and general plan developed to reach long term objectives.Organizational strategy can and generally does focus on many different organizational areas such as Finance, Sales,Marketing,Production, Research and Development and PR.
It gives broad direction to the organization.
Strategy is actually the end result of strategic planning. Although larger organizations tend to be more precise in developing organizational strategy than smaller organization, every organization must have a strategy.
For a strategy to be worthwhile, it must be consistent with organizational objectives, which, in turn, must be consistent with organizational purpose.
Strategy management is the process of ensuring that an organization possesses and benefits from the use of an appropriate organization strategy. An appropriate strategy is one best suited to the needs of an organization at a particular time.
The strategy management process is generally thought to consist of 5 sequential and continuing steps:
- Environmental Analysis
- Establishment of an Organizational Direction.
- Strategy Formulation
- Strategy Implementation
- Strategic Control