* IMPORTANCE OF HAVING A STRATEGIC PLAN WITH IN AN ORGANISATION.
* DIFFERENT STAGES IN THE DEVELOPMENT OF A STRATEGIC PLAN FOR A COMPANY.
* IMPORTANCE OF SWOT ANLYSIS IN ORGANISATIONAL AUDIT PROCESS WITH AN EXAMPLE TO PERFORM SWOT ANALYSIS.
* IMPORTANCE OF PORTER'S INDUSTRY STRUCTURAL ANALYSIS MODEL AND ITS ASSISTANCE TO DETERMINE INDUSTRY ATTRACTIVENESSS WITH AN APPROPRIATE EXAMPLE.
IMPORTANCE OF HAVING A STRATEGIC PLAN WITH IN AN ORGANISATION Strategic planning is a process in which an organization defines its strategy and makes decisions on allocating its resources so that it can pursue the decided strategy. Strategic planning is fundamentally a decision making process, based on asking simple questions, analyzing the desired range of answers, and choosing among the available options: What we do? Where are we going? Where are we now? How will we get there? How did we get here? When will we get there? Why are we in this business? What will it cost? Various business analysis techniques that can be used in strategic planning are: 1. SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats )
2. PEST analysis (Political, Economic, Social, and Technological)
3. STEER analysis (Socio-cultural, Technological, Economic, Ecological, and Regulatory factors)
4. EPISTEL (Environment, Political, Informatic, Social, Technological, Economic and Legal) It is viewed as a process for determining where an organization is going over the next year or within the next 3 to 5 years (long term) or more longer term than this that is 20 years vision. The organisation needs to know where it stands, where it will reach in the end and what will be its condition at that time. That is called the Strategic Plan which is a final byproduct of all the strategic decisions taken by the organization. Therefore, strategic innovation and storming with the 'strategic plan' have to be a cornerstone strategy for an organization to survive the changing and turbulent business climate. The strategic plan consists of a:
* A Mission statement tells the main purpose of the organization. It defines the customer, the critical processes and informs about the desired level of performance.
* A Vision statement outlines what the organization wants to be and its prediction about the future. It acts as a source of inspiration for the organization and all the decisions are to be taken after considering the vision statement.
* Identify current aims, objectives and strategy of the organization * Environmental analysis
* Resource analysis
* Stakeholder analysis
* Strategic opportunities and threats
* Identifying strategic choices
* Strategic decision-making
IMPORTANCE OF STRATEGIC PLAN AND PLANNING
* Due to the strategic plan most important things are being focused. * Awareness about the changing environment is given to the organization. * Internal business culture and its impact on company’s performance is determined. * All the major strengths and weaknesses of the company are recognized. * Available opportunities and the potential threats are examined. * A needed change of direction of the company is administered. * Strategic issues can be brought up for top management review. * More reliable and achievable objectives are being set so that they can be attained. * Better information for strategic decisions is being provided. * Growth can be accelerated and improved.
* Poor performing areas and operational problems can be accessed. * Better communications, road maps and better internal control activities are developed. * Develop a frame of reference for budgets and short-range operating plans. * A sense of security among employees is to be gained that...
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