Business strategic planning defines as the process of determining organization's long term goals and after that identifying best approach to for achieving those goals.
Business strategic planning is process for framing business strategy and making decisions for distributing business resources to pursue business strategy. These resources are such as people and business capital. Various analysis should be made under business strategic planning process. These analysis includes SWOT and PESTLE analysis. SWOT analysis stands for strength, weakness, opportunities, and threats, whereas PESTLE analysis stands for political factors, ecological factors, social factors, technological factors, legal factors and environmental factors.
Scope of Business Strategic Planning:
In challenging world economy, Business Strategic Planning helps to take competitive advantage and core competencies. Is it the most important scope in recent times.
Business Strategic Planning process plays hedge against business uncertainty, because it gives detailed information regarding prevailing trends in current market and also helps to take important long term business decisions.
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It also plays the role of route map for the organization
Business Strategic Planning ensures that the organization has chosen business opportunities are widely for long term.
Business Strategic Planning ensures that organization utilizes best of available resources.
With the help of business strategic planning, organization able to fulfil its objectives and also take growth advantage. It also gives a way to achieve business objectives.
Business Strategic Planning provides frame work for systematic handling for important decisions.
Nature of Business Strategic Planning:
The process of Business Strategic Planning does not end when business strategy is pursued, but strategic action of it goes on in organization. Business Strategic Planning is an important element of Strategic Management. Business Strategic Planning is responsibilities of higher management. It includes to formulates business strategies, executes the long term organizational functions and its processes. The key role of business strategic planning is to help to achieve goals in competitive environment.
Characteristics of Business Strategic Planning:
The characteristics of Business Strategic Planning is as follows:
Focus on control
Business Strategic Planning is value as key tool for management control. It should have ability to performs higher management's expectation. It should have to plays key role to motivation also. It also have ability to controls to revise the plans. It's should have ability to measure financial and non-financial control. It should have also ability to measure performance with the help of control techniques.
It covers all the functions of organization, such as marketing function, personnel function, finance functions and operation functions.
Business Strategic Planning analysed investment opportunities and deposits opportunities. It is also performed market research whenever its needed. It's able to analysed competitors in market.
Business Strategic Planning help to give detailed knowledge regarding customer services. IT also give information regarding efficiency of functioning progression. It also includes the that attracting and retaining efficient staff. It also have to brief information of strengths and weaknesses of organization.
One of the key thing of business strategic planning is that it flexible to adopt unanticipated business changes. It should help to identify key problems of organization. It should also have capacity to avoiding and removing the business barriers to strategy implementation. IT should also have innovative ideas includes in business strategic planning. It should have capacity to identify business opportunities.
Business Strategic Planning process have to analyse important forecasting techniques, trendy analysis. It should also give brief knowledge of financial models. Portfolio analysis methods should also be accessed in business strategic planning.
Contribution of personnel
There should be a contribution of higher management in business strategy planning process. Higher management includes chief operating officer, top managers and board committee members.
Global strategy defines as strategies of organization who operate their business in global market, and serving customers in whole world. The global business strategy is somewhat similar to business development strategies. It can be adopted by organization to meet their long term and short term objectives. The short term objectives can be improving day to day business activities, whereas long term objectives of organization are increasing revenues and earnings.
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The global business strategy should be help to take competitive advantage in global economy.
A global strategy should effective enough in terms of economic of scale, quick product development, integrating & co-ordination of activities and lower costs.
The strategy should be add values to take greater competitive advantages in business activities.
It should be take advantageous of consumers' needs and wants across globe.
A strategy should formed in manner that it have to have centralised control over all their businesses in globe.
Levels of strategy and affecting decision making
The following are the three level of the strategy in organization.
The corporate strategy includes organization vision, corporate goals and philosophy & culture. The corporate level strategy are formulated as per organization's business policies. These policies are risky, flexible, profitable and innovative. It occupy highest level of decision making and covers all the aspects of achieving objectives of organization.
It includes organization's mission, goals and competencies. The business strategies are formulated to best use of available resources. A business strategy provides key plans for allocation of resources among functional areas and co-ordinate between them to achieve objectives. The business strategy gives how functions where as corporate strategy gives what functions. The corporate strategy are impactful on business strategy.
The functional strategy should defined information systems, research and developments, manufacturing, marketing, human resources and finance department. This strategy is for end of operating level of organization. There is a tactical decisions at this level of strategy.
The aim of both profit and non-profit organization are different. So their strategic planning is also different. The major differences is that how both profit and non-profit organization carried out the various steps and associated activities in strategic planning process. The non-profits organizations focuses more on matters of board development, fundraising and volunteer management whereas profits centric organization more focuses on increasing profits and revenues. The profits centric organization decisions are more tactical than non-profit centric organizations.