Importance of Strategic Planning and Management in the Business Environment

Importance of Strategic Planning and Management in the Business Environment

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BUS/475: Integrated Business Topics

December 2009

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Importance of Strategic Planning and Management in the Business Environment

The decision to embark on a new business venture can be daunting. The fear of lost time, money, and resources on a failed venture will deter many individuals from pursuing a dream, while other individuals might forge ahead into unfamiliar territory only to experience defeat. Although a new business can be difficult and its success uncertain, developing a strategic plan will aid in the business' probability of success. When creating and implementing a strategic plan, the four functions of management should be considered to ensure success.

Strategic Management and Planning

Strategic management is the careful planning and management of a business. Strategic management is defined by Pearce and Robinson (2009), as "The set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company's objectives" (p.

Liquid Threads.

Strategic Planning Meeeting

Strategic Planning Meeeting

3). According to a PowerPoint presentation in the BUS 475 class (2009), strategic management has nine critical tasks:

Formulate the company's mission

Conduct internal analysis

Assess the company's external environment

Analyze the company's options

Identify most desirable options

Select long-term objectives and grand strategies

Develop annual objectives and short-term strategies

Implement the strategic choices

Evaluate success of strategic process

While strategic management deals with determining the company's mission, vision, objectives, and goals, strategic planning is the more defined set of plans to achieve the company objectives. Strategic planning is defined by Visitask (2009), as "Strategic planning is the process by which an organization envisions its future and develops strategies, goals, objectives and action plans to achieve that future." Strategic management is how the company is going to achieve the...