Importance Of Strategic Planning

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In order to use strategic planning in the organization, the company should have foundation basic of the organization which is vision, objectives, and value. This plan is the foundational basis of the organization and will dictate decisions in the long-term. Normally the period time of this plan is about two, three, five, or even ten years. Manager need to have a strategic plan to guide the decision in the strategic level. It will also influence the culture within an organization and how it interacts with customers and the media. This means, the strategic plan must be forward looking and flexible. Firstly is mission. Mission is referring what we expect to be five years from now? How does it want to influence the world? This means, the organization…show more content…
The function of mission statement is to review organization purpose and vision. It is guidance to measures organization success. After that, once an organization has developed its mission statement, its next step is to develop the specific objectives that are focused on achieving that mission. Objectives refer to specific measurable results for the initiative's broad goals. The goal function is to know how much what will accomplish. After that you need to develop the strategy. Strategies explain how the initiative will reach its objectives. In organization there are varieties of strategy that include people. These strategies range from the very broad, which encompass people and resources from many different parts of the community, to the very specific, which aim at carefully defined areas. In Strategic planning, we can divided into three level which are corporate strategic planning, business strategic planning and functional. In this task we will discuss in detail about the corporate strategic…show more content…
Stability strategies are often found in stable economic environments where business owners are not too concerned with a contraction in the local economy Retrenchment Retrenchment means downsizing or reduction of company operation. In this strategy the business owner can involve turnaround, divestment or liquidation corporate planning strategy in their company. Turnaround strategies may involve a temporary reduction in business operations. When we reduce the operation cost during periods of low cash flow so companies can remain viable in the business environment. This strategy is permanent reduction in the company. The big company always use this type of strategy in order to close down or sell a portion of their company operations. When this strategy had use in company, it permanent changes to current business operations. Liquidation planning strategies are implemented to permanently close business operations. This planning strategy is refer when the business being sold to a competitor or shutting down operations and all business assets sold to pay outstanding debts. The process of this strategy is take time depend on the organization

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