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Essay on Strategic Planning
The term ‘strategy’ is derived from a Greek word strategies, meaning general. It refers to purpose, mission, goals and objectives in order to achieve specific plans and policies.
‘Strategic Management’ is defined as the process of formulating, implementing and evaluating business strategies to achieve future objectives. This includes all activities leading to the organization’s objectives. For this purpose the basic requirement is the development of plans, actions and strategies to accomplish this purpose.
This concept is the determination of the purpose or mission and the basic long-term objectives of an enterprise. It is assumed that the purpose of the enterprise has already been established yet is may change after a particular situation. On the other hand, strategies are concerned in the direction in which human and material resources will be applied in order to increase the chance of achieving selected objectives. It is thus the managements decision as to the way they chalk out their plans to achieve their organizational objectives. Giving direction to plans is the key function of strategic management. Under strategic management the principle of the strategy and policy framework, a company may for example develop a new policy for coming up with new products that fit in the marketing organization. It would avoid wasting energy and resources on new products which do not meet the required test.
Strategic planning is to analyze the current and expected future situation, determine the direction of the firm, and develop means of achieving the mission. It is therefore an extremely complex process and demands a certain way to identify and analyze the external factors of the organization. All this is a part of strategic management of a business, here plans are implemented in such a manner that forecasting for long term goals is done in the most possible organized way.........
