What are the benefits of strategic planning?
Understanding the Benefits of Strategic Planning For Entrepreneurs Your venture’s goals and strategy define the purpose and competitive advantage that will set it apart from others. Your goals help define your intent, and strategy is the plan of action that describes activities for dealing with the environment and for reaching your venture’s intended goals. When combined, goals and strategies define the scope of operations and the relationship with employees, customers, competitors, and other stakeholders. The term “strategy” is widely used in the business world today. It is one of those words that people define in one way and often use in another, without realizing the difference. It is derived from the ancient Greek word meaning “the art and science of the general deploying forces for battle.” Your strategy is a plan for interacting with the competitive environment to achieve your intended goals. Some think of goals and strategies as interchangeable. For purposes of our research, goals define where your venture wants to go, and strategy defines how your venture will get there. This formal process of setting goals and creating a strategy adds legitimacy, provides employee direction and motivation, helps form decision-making guidelines, and provides criteria for your performance. In essence, the process of strategy formulation sets the general directions in which your venture’s position will grow and develop—your goals and objectives represent the ends that you are seeking to attain. Whereas the strategy is the means to these ends, strategic management is positioning and relating your venture to its environment in a way that will ensure its continued success and make it secure from surprises from competitors. This is competitive strategy, the search for a favorable competitive position in an industry, aiming to establish a profitable and sustainable position against the forces that determine industry competition....
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