Strategic Management

Strategic Management

Introduction

This essay aims to talk about the theories of strategic planning and their applications in today's fast growing world of business. Strategic planning is one of those strategies that are used by numerous organizations as an integral part of their strategy. Planning is a process that has become a fundamental part of our daily life. All human beings practice plans and decision making on a lower or greater level. Personal life planning involves career planning, holidays planning, consumer goods planning, and much more like that. These types of plan required less time to plan, and fewer efforts to execute. However, the formal planning, or what we call business planning, is a much more systematic approach. Organizations have to spend more time, efforts, and resources to execute the planned strategies. The question arises is that if strategic planning is still useful for all forms of organizations or not. The creation of numerous complexity theories has challenged the theories of scientific management and strategic planning. So, a need arises for organizations to evaluate that strategic planning is getting obsolete in today's rapidly changing business environment or not.

Discussion

Strategic planning is one of the functions of strategic management, which is the process of choosing the organization's goals and ways to achieve them. Strategic planning provides the basis for all management decisions. Functions of the organization, motivation and control are focused on the formulation of strategic plans. Not taking advantage of strategic planning, organization as a whole and individuals will be deprived of a clear method for evaluating the goals and direction of the corporate enterprise. The strategic planning process provides a framework for the management members of the organization. Strategic Planning System enables companies to shareholders and management to determine the direction and pace of business development, to outline the global trends of the market, understand what the organizational and structural changes must occur in the company to become competitive, what is its advantage, what tools are needed for its successful of development.

Until recently, the strategic planning was the prerogative of large international corporations. However, the situation began to change, and as polls show that more and more companies, representing medium-sized businesses are beginning to deal with strategic planning.

The strategic planning process

The strategic planning process in the company consists of several stages.

Defining the mission and goals of the organization

The objective function begins with the establishment of the mission enterprise, which expresses the philosophy and meaning of his existence.

Mission is a conceptual intention to move in a certain direction. Usually, it details the status of the company, describes the basic principles of its operation, the real intentions of management, and defines the most important economic characteristics of the enterprise. The mission expresses its aspirations for the future, shows that, on what will be sent to the efforts of the organization, what values ??are at the same priority. Therefore, the mission should not depend on the current state of the enterprise; it should not affect the financial problems, etc. The mission is not taken to ...