What is strategic planning and management

strategic planning

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Definition: strategic planning

Strategic planning, also often referred to as strategic corporate planning, describes the process in which the survival and growth of the company are in the foreground. The goals and measures to be achieved are determined in strategic planning.

What exactly is taken into account in strategic planning?

  • Focus on the identity, purpose and principles of a company
  • Strategic planning is necessary in order to be able to differentiate yourself from the competition in the long term
  • The strategic planning builds an invisible path from the beginning to the achievement of the desired goals
  • Action plans and so-called milestones ensure that risks and barriers can be overcome
  • In order to recognize opportunities at the right time and to be able to use them accordingly, efficiency and flexibility in strategic corporate planning are crucial

Strategic planning goals

  • First, an extensive analysis is carried out in order to find the right strategy
  • Various instruments are used for this
  • Most important goals of a company: To achieve the highest possible profit by creating competitive advantages over the competition and / or increasing the market share of the company's products
  • Possible ways to achieve these goals: New technologies, new sales channels
  • An attempt is made to create room for maneuver in order to prevent material and time constraints.

The elements of strategic business planning

  • Environmental analysis: The analysis of the economic, ecological, legal, technological and socio-cultural conditions.
  • Business analysis: Analysis of the company's strengths and weaknesses in comparison with historical values, critical success factors or other competitors
  • Corporate principles: The corporate philosophy helps determine the overall strategy of a company
  • Strategy development: The strategy is derived from the individual portfolios, e.g. B. Market Growth-Market Share-Portfolio, Market Attractiveness-Competitive Advantage-Portfolio, Technology-Portfolio, the SWOT-Analysis and the Scenario-Analysis.
  • Determination of the strategic options: the actions that must be taken to pursue the chosen strategy.
  • Then comes the implementation and controlling

What does controlling have to do with strategic planning?

  • Controlling is responsible for planning, reporting, evaluation and advice
  • They support the management level
  • The tasks of controlling consist of the internal and external analysis of a company. You determine the initial situation and the definition of strategic alternatives
  • When the goals have been set, controlling takes over the creation and implementation of the necessary measures
  • The three main controls of controlling: premises, implementation and effectiveness control
  • The areas of responsibility of strategic planning and controlling are very similar and closely linked so that they appear together during implementation

Summary

  • In strategic planning, goals and measures are determined to enable the survival and growth of a company
  • Objective: To achieve the highest possible profit by creating competitive advantages and / or increasing the market share of the company's products
  • Elements of strategic corporate planning: environmental analysis, corporate analysis, corporate mission statements, strategy development, determination of strategic options, implementation and controlling
  • Strategic planning and controlling are closely linked and appear together during implementation