STRATEGIC PLANNING

Strategic Planning

Strategic Planning

Strategy

Principles and essential routes that will guide the management process to achieve the objectives that you want to reach. A strategy shows how an institution intends to reach those goals. There are three types of strategies, short, medium and long term depending on the time horizon. Term used to identify the fundamental operations of the economic apparatus tactics. Their adaptation to planning schemes due to the need to address the proper conduct of economic agents in different situations and even opposed. In other words is the way forward for the broad lines of action contained in national policies to achieve the purposes, objectives and goals in the short, medium and long term.

History of Strategy in Business

Enterprises need strategies and armies to enforce their goals or financial or military profit. Accordingly, it serves to achieve a goal and goal-oriented working, effective and efficient optimization of resource allocation and coordination of individual decision flows. Military and business strategy is thus similar in concepts and principles. A fixed strategy is both correct in so far only very difficult, as inconsistency in the implementation often lead to fatal consequences. Severity of the offensive and defensive strategies and unconditional nature of a decision once taken are therefore in an organization like the Army equally necessary. Business and military world differ both between strategy and tactics strategy is considered overall plan for obtaining a long-term goal; tactic is a more short-term design for a special action in the context of the selected overall strategic plan, the author of Contemporary Strategy Analysis. RM Grant refers, but also an important difference: opponents in the business world do not seek to destroy each other. As a non-military strategy goal, therefore, the coexistence of several firms is considered in the competition (Huxham, 2000: 1159-75).

The coordination of a variety of decisions, while retaining an overview of all operations of the company was increasingly viewed as a challenge. They began, therefore, budgeting and financial processes together in overviews. When calculated only in the short term, this was the first step toward corporate control through the planning. Strategy as such was not necessary at this time due to the prevailing market conditions, there was very high after the Second World War and the demand was the main feature of the industry in the area of ??production. The economy was focused enough to adapt to produce goods and prices to production costs and wages of employees.

In the '60s, the management ventured for the first time to plan long term because of steady economic recovery. They moved into the "Corporate Planning" and undertook long-term investments, for example in the technology market. During this time the instrument of economic planning in the five-year plan, the objectives, trends, cost structures and other factors were considered. Alfred Chandler, a leading economic historian with a research focus on Business History, explained in his book Strategy and Structure of 1962, that the structure has to follow the strategy and the latter has as a separate business function in ...