Planning is the process of outlining the activities that are necessary to achieve the goals of the organization. Planning is important to the organization because it ensures that the organization is running their activities in both an effective and efficient way. Planning help managers to determine how organizational resources are to be allocated and how the activities of the organization will be assigned to individuals and work groups. Planning gives guidance and direction to the members of the organization.
Strategic planning is a process by which an organization makes decisions and takes actions that affect it s long-run performance. Strategic planning also focuses on enhancing the competitive position and overall performance of the organization in the long term. The purpose of strategic planning is to move the organization from where it is to where it wants to be and, in the process to develop and maintain a competitive advantages within the industries in which it competes.
In most companies, strategic planning isn't about making decisions. It's about documenting choices that have already been made. Leading firms are rethinking their approach to strategy development so they can make more, better, and faster decisions (Mankins & Steele). A good example of strategic management is Dell Company, they redefined their strategy to maximize their profit and meet their customers need. The strategy that they used is to provide computers that are customized to meet the individual needs; the computers are also delivered quickly and priced very reasonable. Dell had succeeded to establish a very successful strategy to attract customers and maximize their profit as well.
Strategic planning occurs at three primary levels within the organization, which are the corporate level, the business level, and the functional level. The corporate strategic planning focuses on developing the corporate strategy in other words it develops the...