Importance of Strategic Planning

Topics: Strategic management, Management, Organization Pages: 4 (1232 words) Published: October 11, 2008
Importance of Strategic Planning

Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.

Strategic Planning

The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.

Why strategic planning?

The interest in the strategic planning is caused by several reasons: 1.Realization of the fact that an organization is an open system and that the main sources for its success are in the outside environment. 2.Strategic planning allows a company to adequately respond to the factors of uncertainty and risk which are...

References: Rigby, D. (December 2007). Selecting management tools wisely. Harvard business review, 85(12), 20-22, 3. Retrieved on September 18, 2008, from EBSCOhost database.
Sandenaw R.I., (November 2007). Seven steps to business planning. Credit Union Magazine, 73(11), 2-3. Retrieved on September 18, 2008 from EBSCOhost database.
Urbany J.E., Davis J.H. (November 2007). Strategic Insight in Three Circles. Harvard business review, 85(11). Retrieved on September 18, 2008 from EBSCOhost database
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