Elements Of Strategic Planning Commerce Essay

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Every organization must have a strategic planning to ensure that the right decisions are made according to the sequence of activities. Strategy is defined as the determination of long-term goals and objectives by corporate planners and is treated as a pattern of policies and plans formulated by the top management to achieve the goals set. The strategic planning method has been depict as the development of decision-making rules that guide future organizational actions.[1] In an organization, strategic planning is very important to set values, create a cohesive visions, mission, chart a direction and set goals for future growth. That involves the whole organization from top management to employees. Strategic plans must be clearly communicated throughout the organization. Once executed, they must be monitored and controlled. Adjustments must be made as business environment changes. "Good strategic planning and implementation are the most trust worthy signs of management effectiveness". [2]

Strategic planning is needed because the environment that organizations function in is continuously changing. There are many forces operating on the organization and most of them are out of the organization's control. To be balance viable in the future, the organization must be expecting the force changes and act to position itself for success. There is no secret recipe for organization success, but each planning process tends to sort the dynamic forces affecting the organization into four categories called Strengths, Weakness, Opportunities, and Threats (SWOT).

In general, one of these categories will be the main factor driving organization change. Market leaders tend to leverage their strengths to take benefit of emerging market opportunities. Market trailer tend to improve their weakness in order to defend against market threats. Regardless of the situation, if the organization does a good job of identify its strategic direction it will act to focus and drive the organization toward achieving its vision of the future. The next planning step is to deploy the strategic direction throughout the organization. This involves breaking the strategic way into smaller, more controllable objectives and creating detailed implementation plans. Activity owners are assigned and milestones are identified. Lastly, the entire plan is documented and distributed to key people in the organization. [3]



There are three types of statements should have in an organization to ensure the success and it must embed into each member:



Quality policy

The utilization of these statements varies from organization. Small organization could use only the quality policy statement.

Vision Statement

The vision statement is a short declaration what an organization aspires to be tomorrow. A vision statement, on the other hand, describes how the future will look if organization achieves its mission. Successful visions are timeless, inspirational, and become deeply shared within the organization such as Apple's Computing for masses with their vision statement is "Apple's is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings".[4] With the vision and efforts to achieve this, Apple's is able to become the first choice of consumers all over the country though its prices higher than other product.

Mission Statement

The mission statement is definition of product services, customer need, distinctive competencies and markets. To provide world responsiveness to our customer by offering the lowest total cost, design, integrated, highest quality, supply change and manufacturing solution through long-term partnership base on ethical and integrity business practices. An example of mission statement for Honda Motor is "Maintaining a global viewpoint, we are dedicate to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction" [5]

Quality Policy Statement

The quality policy is a guide for everybody in the organization as to how they must provide product and services to the customers. It must be written by the CEO with feedback from the workforce and be approves by the quality council. A quality policy is an obligation of ISO 9000. An example quality policy for Phillips Industry is "committed to complying with agreed to customer requirements and to continue improve the effectiveness of its quality management system through preventive and continuous improvement and reviewing those actions and reviewing those actions annually for continued suitability. Phillips shall ensure the confidentiality of customer contracted product, project under development and related product information. All employees have the authority to stop production to correct or prevent a potential product or process problem. Personal from Quality, Engineering and Customer Services are designated as Customer Representatives on the organizational charts. Phillips Industries is committed to a total quality operation and will operate within the guidelines of its manual." [6]


Besides setting mission, vision and policy for a company, the proper steps to be followed by organization. There are seven steps to strategic planning:

Customer Needs: It's a first step to discover the future needs of the customers. For example familiar question; what will they want? How will they want? Who will they be? Will your customer base change? How will the organization meet and exceed expectation. These questions will solve by presented the good of quality product and services.

Customer positioning: Its second step for the planners determined where organization desire to be in relation to the customer. Do they want to constant, expand or reduce the customer found. Product or services with poor quality performance should be targeted for break through or eliminated. The organization must to concentrate its efforts on areas of excellence.

Forecast the future: Next, planner should to forecast the future conditions that will affect their product services. Technical forecasting, demographics, and economics is a tool to help predict future.

Gap Analysis: Next, the planner needs to recognize the gaps between recent state and the future in the organization. An analysis of the concepts and values is an excellent technique for pin pointing gaps.

Concluding the Gap: Now, the plan must be developing to conclude the gap by establish goal and responsibilities. Avery stakeholder must be include in develop or the plan.

Alignment: after the plan is developed, it should be aligned with the vision, mission, and core value with concept of the organization.

Implementation: It's the last step the most difficult to contribute. Resource should be provide to design change, collecting data, and overcome resistance to change. In this step, it is also monitoring activity make sure that progress is being complete.



Strategic planning is very important to work in the industry. This caused a lot of external and domestic competition in wanting to monopolize their products or services. To ensure high competitiveness, a company has to be making the right strategic planning and practice it out well. Strategic planning is as the company road map to achieving competitive advantage. For example, each person must have plans for the future such as what areas and Career to be pursued in the future. Each planning is very important and it is better than no plan at all and it will improve the performance. Without strategic planning a company or organization puts at risk such as bankrupt. Company that plan strategic are more successful that those do not.

Besides in industry, strategic planning must be implementing in each department. It will support to industry for achieve vision and current mission in all part in organization. That involves the whole organization from top management to employees. Strategic plans must be clearly communicated throughout the organization. It can provide all strategic direction to management of the organization and gives a specific direction to areas such as financial, organization devolvement, marketing and human resource strategic to achieve success.

In the production of a product, strategic planning is also important. This is to ensure customer satisfaction is achieved. As an example in HONDA automotive where it implement the strategic planning during produce their car. It can improve the car performance by produce a good design than other car. It also will provide high quality of car such as suspension, engine and etc. Base on feedback from customer, it able to maximize changes for success.



This plan has been developed at a time when industry faces significant challenges from the potential entry of low-priced import products. Industry's plan to be competitive in an increasing complex marketplace is base on an integrated set of initiatives which combine to enhance the performance of the entire supply chain. As a result, the initiatives proposed in the future include issues through the industry value chain - addressing the relationship with the ultimate consumer of product, those partners that influence choice of consumption, back up to the attributes of successful orchard production. The plan is also strongly built on the recognition that resistance or denial of market realities will only lead to a substantial weakening of the value of industry to its current and future participants. The plan has been developed following significant co-investment with government to objectively assess areas of priority development in the future. This work has included a comprehensive situation assessment, coupled with an assessment of the efficiency of the industry supply chain, and priorities in implementation of the intensification of orchard production. The initiatives have been developed through the involvement of a significant number of industry participants, through participation in a strategic planning workshop through to involvement in consultation in the background research. From result of the proposed research is made, Apple and Pear industry has developed a strategic plan, composed as situation analysis, Industry's Vision for the future, Priority Initiatives, Financial plan, Industry management, and lastly Action plan. There are used some tool such as SWOT to implement strategic planning.


SWOT is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunity and threats. The method of SWOT analysis is to obtain the information from an environmental analysis and divide it into inside (strengths and weaknesses) and outside issues (opportunities and threats). Once this is complete, SWOT analysis determine what might assist the firm in accomplish its objectives, and what obstacles must be overcome or reduce to achieve desired results. Below is a table statement SWOT for Apple and Pear Industry:


Strategic planning is most important because it helps put the project in a position to be successful. Planning helps the organization or everyone understand the problem that want to address, and it helps identify the best ways to address that problem. A strategic plan helps ensure that everyone associated with the project shares a common vision about the project's intended end result and how you are going to get there. It helps ensure that your project aligns with the overall mission of your organization, and it helps you identify the factors that may facilitate or impede the implementation of your project. Finally, a strategic plan will help you establish a practical process for documenting results. In practice, strategic planning will help you design an effective project and a successful grant application.