Strategic Planning. UOP. MGT330. Instructor's comment: "Nice work. Great flow and format! 15/15"

Essay by zozo15University, Bachelor'sA, August 2008

download word file, 4 pages 5.0

The article surfaces the importance of strategic planning as one of the essential tools of planning as a management function. It highlights the differences between strategic and long-term planning as well as emphasizes steps of strategic planning.

Strategic PlanningThe 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. But to a highest degree it concerns planning where strategic planning stands out.

Why strategic planning?Te interest to 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.In the situation of deepening the competition strategic orientation of an organization's activity is the key factor of its survival and prosperity. Strategic planning allows to adequately respond to the factors of uncertainty and risk which are characteristics of the outside environment.

3.Since the future is almost impossible to predict and extrapolation used in long-term planning does not work, it is necessarily to apply scenario, situational methods which fit well in the concept of strategic planning.

4.For the organization to be able to adequately respond to the changes of the environment its system has to have ability to adapt.

5. Strategic planning versus long-term planningStrategic plan characterizing the activity of organizations in the market uses the following paradigm: "Tomorrow will not necessarily be better than today". That means that simple...