Strategic Management: Formulation and Implementation

Planning And Strategic Planning: An Overview

Strategic planning represents part of strategic management. It is process of analyzing the opportunities and threats in the marketplace, building the strengths and correcting the weaknesses within the firm. Strategic planning also includes tasks of defining the mission, setting objectives, and crafting a strategy. Together, they constitute a strategic plan. Therefore, the strategic plan may be viewed as a framework for strategic decision making.

This chapter overviews foundations of planning and strategic planning process. The next chapters will describe strategic planning process in more detail.

Foundation Of Planning

Planning is an attempt to manage the future: what is to be accomplished and how.

In essence, "planning is the process of determining objectives and assessing they way these objectives can best be achieved." This process determines where the organization should be going, why, and how.

As stated by Koontz and O'Donnel, the fundamental purpose of planning is to "facilitate the accomplishment of enterprise and objectives." All other purposes of planning are simply spinoffs of this primary purpose.