GENERAL MANAGEMENT PROJECT ON

“ Elements of Strategic Planning”

Submitted in Partial Fulfillment for the requirement of

MMS degree to University of Mumbai

Submitted by:
Surya Suresh

MMS (Finance )
(Roll No.9111)

Research Guide:
( Prof. Sanjiv Joshi )

Batch:-2018-2020

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 DECLARATION BY STUDENT

I, Surya Suresh, hereby declare that the work presented herein is

original work done by me and has not been published or submitted

elsewhere for the requirement of a degree programme. Any literature

date or work done by other and cited within this thesis has given due

acknowledgement and listed in the reference section.

Ms. Surya Suresh (Student Signature)

Place: Swayam Siddhi College of Management and Research

Date: 15 March 2020

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 CERTIFICATE

Certified that the General Management Project, entitled “Elements of

Strategic Planning” submitted by Ms. Surya Suresh towards partial

fulfillment for the Master of Management Studies is based on the

investigation carried out under our guidance. The project part therefore has

not submitted for the academic award of any other university or institution.

Name of Student: Surya Suresh

Prof. Sanjiv Joshi

Project Guide.

Dr./Prof.Ginlianlal Bhuril
Director.

Place: Swayam Siddhi College of Management and Research

Date: 15 March 2020

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 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Prof. Sanjiv Joshi,

Associate/Assistant Professor, and Head of Department of Finance for

allowing me to undertake this work and for his continuous guidance advice

effort and irrevertible suggestion throughout the Project.

My utmost gratitude to Dr. Ginlianlal Bhuril Director, Swayam Siddhi

College of Management and Research, University of Mumbai, without their

continuous support this study would not have been possible.

I would also like to thank my friends of Master of Management Studies

Batch 2018-2020 of Human Resource / Marketing / Finance / Operation /

Information Technology for there help throughout the study.

Lastly I would like to express my sincere appreciation to my parents for

encouraging and supporting me throughout the study.

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 TABLE OF CONTENTS

Sr. No CHAPTER

1 Introduction

2 Conceptual Framework

3 Review of Literature

4 Conclusion and Findings

5 Bibliography & References

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 CHAPTER I
INTRODUCTION

1.1 Introduction

1.2 Problem Statement

1.3 Objectives of the Study

1.4 Scope of the Study

1.5 Research Methodology

1.6 Significance of the study

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 1.1 INTRODUCTION

Strategic planning is an organization's process of defining its strategy, or direction, and

making decisions on allocating its resources to pursue this strategy. It may also extend to
control mechanisms for guiding the implementation of the strategy. Strategic planning
became prominent in corporations during the 1960s and remains an important aspect of
strategic management. It is executed by strategic planners or strategists, who involve
many parties and research sources in their analysis of the organization and its relationship
to the environment in which it competes.

Strategy has many definitions, but generally involves setting strategic goals, determining
actions to achieve the goals, and mobilizing resources to execute the actions. A strategy
describes how the ends (goals) will be achieved by the means (resources). The senior
leadership of an organization is generally tasked with determining strategy. Strategy can
be planned (intended) or can be observed as a pattern of activity (emergent) as the
organization adapts to its environment or competes.

Strategy includes processes of formulation and implementation, strategic planning helps

coordinate both. However, strategic planning is analytical in nature strategy formation
itself involves synthesis via strategic thinking. As such, strategic planning occurs around
the strategy formation activity

Strategic planning is a process and thus has inputs, activities, outputs and outcomes. This
process, like all processes, has constraints. It may be formal or informal and is typically
iterative, with feedback loops throughout the process. Some elements of the process may
be continuous and others may be executed as discrete projects with a definitive start and
end during a period. Strategic planning provides inputs for strategic thinking, which
guides the actual strategy formation. Typical strategic planning efforts include the
evaluation of the organization's mission and strategic issues to strengthen current
practices and determine the need for new programming.

The end result is the organization's strategy, including a diagnosis of the environment and
competitive situation, a guiding policy on what the organization intends to accomplish,
and key initiatives or action plans for achieving the guiding policy

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 1.2 PROBLEM STATEMENT
Putting in place a new generation of managers and owners is a time of great vulnerability
for a company, as it is with any other major change. This is why the process should
engage the successor in the continuation of the company, which is to say the process
should take into consideration the past, the present, and the future prospects of the
company. A thorough strategic planning exercise outlines the company’s main direction
while at the same time defining its needs in terms of leadership quality and in terms of
financing. Whether this exercise is performed by the owner-manager, the successor, the
board of directors, or a management committee, the exercise comprises eight elements.

1.3 OBJECTIVES OF THE STUDY

1. To know what is Strategic Planning.

2. To know the features of Strategic Planning.
3. Uses of Strategic Planning
4. To know the elements of Strategic Planning.

1.4 SCOPE OF THE STUDY

The scope of the study is to understand the relevance of strategic planning in an

orgnisation, its uses, processes and elements of Strategic Planning.

1.5 RESEARCH METHODOLOGY

 Books
 Magazines , Journals
 Internet Sites

1.7 SIGNIFICANCE OF THE STUDY

Strategic planning is important to an organization because it provides a sense of direction

and outlines measurable goals. Strategic planning is a tool that is useful for guiding day-
to-day decisions and also for evaluating progress and changing approaches when moving
forward. In order to make the most of strategic planning, your company should give
careful thought to the strategic objectives it outlines, and then back up these goals with
realistic, thoroughly researched, quantifiable benchmarks for evaluating results.

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 CHAPTER 2

CONCEPTUAL FRAMEWORK

2.1 Concept of Strategy

2.2 Concept of Strategic Planning

2.3 Importance of Strategic Planning

2.4 Features of Strategic Planning

2.5 Elements of Strategic Planning

2.6 Approaches of Strategic Planning

2.7 Tools of Strategic Planning

2.8 Limitations of Strategic Planning

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2.1 CONCEPT OF STRATEGY

The word “strategy” is derived from the Greek word “stratogos”; stratus (meaning army)
and “ago” (meaning leading/moving).

Strategy is an action that managers take to attain one or more of the organization’s goals.
Strategy can also be defined as “A general direction set for the company and its various
components to achieve a desired state in the future. Strategy results from the detailed
strategic planning process”.

A strategy is all about integrating organizational activities and utilizing and allocating the
scarce resources within the organizational environment so as to meet the present
objectives. While planning a strategy it is essential to consider that decisions are not taken
in a vaccum and that any act taken by a firm is likely to be met by a reaction from those
affected, competitors, customers, employees or suppliers.

Strategy can also be defined as knowledge of the goals, the uncertainty of events and the
need to take into consideration the likely or actual behavior of others. Strategy is the
blueprint of decisions in an organization that shows its objectives and goals, reduces the
key policies, and plans for achieving these goals, and defines the business the company is
to carry on, the type of economic and human organization it wants to be, and the
contribution it plans to make to its shareholders, customers and society at large.

2.2 CONCEPT OF STRATEGIC PLANNING

Planning is related with future. A planning process involves different degrees of futurity.
Some parts of the organisation require planning for many years into the future while
others require planning over a short period only.

‘Strategic planning’ may be defined as the process of determining the objectives of the
organisation and the resources to be used to attain these objectives, as also the policies to
govern the acquisition, utilisation and disposition of these resources.

Examples of strategic planning in an organisation are—diversification of business into

new lines, planned growth rate in sales, type of products to be offered, etc. Strategic
planning encompasses all the functional areas of business and is affected within the
existing and long- term framework of economic, technological, social and political factors.

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It also involves the analysis of various environmental factors—particularly with regard to
how an organisation relates to its environment. Generally, for most of the organisations,
strategic planning period ranges between three to five years.

2.3 IMPORTANCE OF STRATEGIC PLANNING

1. Financial Benefits:

Firms that make strategic plans have better sales, lower costs, higher EPS (earnings per
share) and higher profits. Firms have financial benefits if they make strategic plans.

2. Guide to Organisational Activities

Strategic planning guides members towards organisational goals. It unifies organisational

activities and efforts towards the long-terms goals. It guides members to become what
they want to become and do what they want to do.

3. Competitive Advantage

In the world of globalisation, firms which have competitive advantage (capacity to deal
with competitive forces) capture the market and excel in financial performance. This is
possible if they foresee the future; future can be predicted through strategic planning. It
enables managers to anticipate problems before they arise and solve them before they
become worse.

4. Minimises Risk

Strategic planning provides information to assess risk and frame strategies to minimise
risk and invest in safe business opportunities. Chances of making mistakes and choosing
wrong objectives and strategies, thus, get reduced.

4. Beneficial for Companies with Long Gestation Gap

5. The time gap between investment decisions and income generation from those
investments is called gestation period. During this period, changes in technological or
political forces can disrupt implementation of decisions and plans may, therefore, fail.
Strategic planning discounts future and enables managers to face threats and
opportunities.

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6. Promotes Motivation and Innovation

Strategic planning involves managers at top levels. They are not only committed to
objectives and strategies but also think of new ideas for implementation of strategies.
This promotes motivation and innovation.

7. Optimum Utilisation of Resources

Strategic planning makes best use of resources to achieve maximum output.

2.4 FEAURES OF STRATEGIC PLANNING

1. Process of Questioning:

It answers questions like where we are and where we want to go, what we are and what
we should be.

2. Time Horizon:

It aims at long-term planning, keeping in view the present and future environmental
opportunities. It helps organisations analyse their strengths and weaknesses and adapt to
the environment. Managers should be farsighted to make strategic planning meaningful.

3. Pervasive Process:

It is done for all organisations, at all levels; nevertheless, it involves top executives more
than middle or lower-level managers since top executives envision the future better than
others.

4. Focus of Attention:

It focuses organisation’s strengths and resources on important and high-priority activities

rather than routine and day-to-day activities. It reallocates resources from non-priority to
priority sectors.

5. Continuous Process:

Strategic planning is a continuous process that enables organisations to adapt to the ever-
changing, dynamic environment.

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6. Coordination:

It coordinates organisations internal environment with the external environment,

financial resources with non- financial resources and short-term plans with long- term
plans.

2.5 ELEMENTS OF STRATEGIC PLANNING

A strategic plan is a document that establishes the direction of an organization. It can be

a single page or fill up a binder, depending on the size and complexity of the business
and work.

Most managers can benefit from having a strategic plan. The process of developing a
plan helps the manager (and the team) step back and examine where they are, where they
want to go, and how to get there. In the absence of a plan, work still gets done on a day-
to-day basis but often lacks a sense of purpose and priority.

There are seven basic elements of a strategic plan. While there can be much more
included in the plan, these seven elements will help you get started.

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Vision Statement

A vision statement describes the way you envision your business. As such, it should
communicate that dream to your employees and customers in an inspirational manner.

A vision statement should be reviewed continuously to ensure it is still aligned with the
way you see your company.

Harley-Davidson's vision statement focuses on keeping its brand internationally known

and valued, using the combined power of its stakeholders and employees to drive value
and innovation.

One of the functions of strategic planning is to inspire people in the organization to work
towards the creation of a new state of affairs. The vision is a means of describing this
desired future, but it works best to inspire and motivate if it’s vivid — in other words, a
vision should be a “picture” of the future. The visioning process is usually the very first
step in the strategic planning process.

Mission Statement

While a vision describes how you view your business to your customers and stakeholders,
a mission statement describes what you do currently. It often describes what you do, for
who, and how. Focusing on your mission each day should enable you to reach your
vision. A mission statement could broaden your choices, and/or narrow them.

The mission statement would focus on results and outcomes, while the role statement
gets more into the “hows”.

A good way to think about this is to first state your mission, add a byline to it, and then
add a role.

Core Values

Core values describe your beliefs and behaviors. They are the beliefs you have that will
enable you to achieve your vision and mission.

The Coca-Cola Company lists it's core values as:

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

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Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

SWOT Analysis

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. A SWOT

analysis provides businesses a situational investigation into their position in the market.
It allows you to spot and name the important aspects, happenings, and adversaries of
your business.

A business' strength could be its ability to attract local customers, while its weakness
might be an inability to break into a non-local consumer base. A local competitor with
ties to non-local customers could be facing a financial situation, giving this business an
opportunity.

However, the other business remains a threat if it pulls out of the crises. If another
competitor is trying to expand its customer base, it is a threat as well.

Long-Term Goals

Long-term goals are statements that drill down a level below the vision and describe how
you plan to achieve it. This set of goals usually starts three years out and extends to
around five years into the future, directly aligning with the mission and vision statements.

Long-term goals are the milestones a company sets to guide operations toward their far-
reaching objectives. Some examples of long-term goals could be for a business to
strengthen its hold on the local market, increasing profits or expanding its operations and
sales.

Yearly Objectives

Each long-term goal should have a few one-year objectives that advance your goals. Each
objective should be as SMART as possible: Specific, Measurable, Achievable, Realistic,
and Time-based.
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After you make your yearly objectives, you might break each one down further into short-
term goals, which define the actions and objectives for the next three months to get you to
your yearly goals. The plans for achieving your short-term goals are your action plans.

Action Plans

Each objective should have a plan that details how it will be achieved. The amount of
detail depends on the amount of flexibility you want your managers and team to have.
The more detail there is, the less flexibility those that follow it have.

It’s been said that “A vision without a plan is just a dream. A plan without a vision is just
drudgery. But a vision with a plan can change the world.” Creating a plan to achieve your
business objectives may not change the world—but it is possible. Some of the most
successful corporations started in garages, and through planning became industry giants.

Strategic Planning Goals

Once we established a vision, mission and role, and done internal and external scans, we
should have enough information to set goals for the period that our strategic plan covers.
Goals in strategic planning can be either result oriented, or process oriented, although, it’s
probably better to have results oriented goals.

2.6 APPROACHES OF STRATEGIC PLANNING

1. Bottom-Up Approach

Initiatives in formulating strategy are taken by the various units or divisions of an

organization and then passed upward for aggregation at the corporate level. Corporate
strategy will then be a composite of these plans. The weakness of this approach is that
corporate strategy may end up as an incoherent muddle that merely reflects the objectives
of the divisions before the planning attempt was made.

2. Top-Down Approach

Initiative is taken by the upper-level executives of the organization, who formulate a

unified, coordinated strategy, usually with the advice of lower-level managers. This
overall strategy is then used to establish objectives and evaluate the performance of each
business unit.

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3. Interactive Approach

This approach is a compromise between the bottom-up and top-down methods, corporate
executives and lower-level managers develop strategy in consultation with each other,
making a link between wider corporate objectives and the managers’ detailed knowledge
of specific situations.

4. Dual-Level Approach

Strategy is independently formulated at both the corporate and business levels. All units
form plans which suit their particular situations, and these plans are regularly reviewed by
corporate management. At the corporate level, strategic planning is continuous and
focuses on the larger goals of the organization- when to acquire and when to divest
businesses; how to react to competition and the external environment; what priorities to
attach to the organizations various units.

2.7 TOOLS OF STRATEGIC PLANNING

1. SWOT Analysis

SWOT analysis is a tool for assessing the business and its environment that helps focus
on key issues. It can help us focus limited resources and capabilities to the competitive
environment. SWOT stands for strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal factors. Opportunities and threats are external
factors. The point of the SWOT analysis is to ensure that we have a marketing plan that is
consistent with the resources and capabilities of our company.

2. Scenario Planning

In essence scenario planning is about being prepared.

Scenario planning is a fancy term for a very logical and sensible process — the “what if”
process. It involves looking into the future, anticipating possible events, scenarios or
changes, and analysing what will happen to the company as a result of those things
happening, and, planning to minimise any damage, and maximise opportunities.

Scenario planning is often used in IT environments but applies to any business. For
example, the IT department might anticipate what would happen if a major hurricane hit
and destroyed their central computers. As a result they would minimize their risk by using
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offsite data storage geographically separate from the main installation, or move their
central computers to a more resistant building.

3. Pest Analysis

The PEST analysis or model is another tool, quite similar to the SWOT model, but is
more specialized and focused on the external environment and important factors “out
there” that can affect present and future business.

The PEST acronym stands for:

i. Political

ii. Economic

iii. Social

iv. Technological.

Once political, economic, social and technological factors are identified (which is the first
step), the next step is to create a business strategies that will take advantage of these
trends and changes, while minimizing risk to the company from those trends and changes.

4.Risk Analysis

Risk analysis involves identifying where a company might be vulnerable to various

outside (usually) factors. Risk analysis may be conducted either within the structure of
strategic planning, or, on its own. These days companies need to buffer the effects of a
number of things “out there” so they ensure that they don’t become the victims of
foreseeable events. We can never be sure that we have covered off all risks — we can
only identify, and plan for risks we can foresee.

5. STP (Situation-Target-Path)

STP or Situation-Target-Path is a very simple overview of the strategic planning method,

it divides the planning process into three parts, starting with defining the situation –
evaluating and analyzing the current situation and how it came about.

The second component – Target – involves defining goals and objectives for the future.
Sometimes this is referred to as defining the ideal or desired future state.

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The third component – Path – involved defining a map or path to achieve the goals or
future state.

The STP method is simple, but accurately describes, at least in a general way, what
strategic planning involves

2.8 LIMITATIONS OF STRATEGIC PLANNING

Strategic Planning in management is essential but there are practical limitations to its use.
The reasons why people fall in strategic planning emphasize the practical difficulties
encountered in planning.

A number of limits within which planning has to operate make this undertaking difficult

Following are the limitations:

1. Problems of Change

The factor works more as limiting factor in the light of changes in future conditions. In a
complex and rapidly changing environment, the succession of new problems is often
magnified by implications that make planning most difficult. The problem of change is
more complex in long-range planning.

Present conditions tend to weigh heavily in planning, and by overshadowing future needs,
may sometimes results in error of judgment. Such factors as changing technology,
consumer tastes and desires, business conditions, and many others change rapidly and
often unpredictably. In such conditions, planning activities taken in one period may not
be relevant for another period because the conditions in two periods are quite different.

2. Failure of People

There are many reasons why people fail in planning, both at the formulation level as well
as implementation level. Some of the major failures are lack of commitment to planning,
failure to develop, sound strategies, lack of clear and meaningful objectives, tendency to
overlook planning premises, failure to see the scope of the plan, failure to see planning as
a rational approach, excessive reliance on the past experience, failure to use the principles
of limiting factors, lack of top management support lack of delegation of authority, lack
of adequate control techniques, and resistance to change.

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These factors are responsible for either inadequate planning or wrong planning in the
organisations concerned.

3 . Lack of Accurate Information

The first basic limitation of strategic planning is the lack of accurate information and facts
relating to future. Planning concerns future activity and its quality will be determined by
the quality of forecast of future events. As no manager can predict completely and
accurately the events of future, the planning may pose problems in operation.

This problem is further, increased by lack of formulating accurate premises. Many times,
managers may not be aware about the various conditions within which they have to
formulate their planning activities.

4. Inflexibilities

Manager while going through the strategic planning process have to work in a set of
given variables. These variables may be more in terms of organisational or external.
These often provide considerably less flexibility in planning action.

(a) Internal

Major internal inflexibilities that may limit planning are related to the psychology.
Organisational policies and procedures, and long-term capital investment. The first
internal inflexibility is in the form of human psychology in that most of the people have
regard for the present rather than for future. The present is not only more certain than
future, it is also more desirable, and more real.

Thus, resistance to change is a basic factor which works against planning because
planning often depends on the changes. People may have feelings that if planning is soft-
pedalled, the changes and the possible danger of future will be minimised. For them,
planning tends to accelerate change and unrest.

Second type of internal inflexibility emerges because of organisational policies and

procedures once these are established, they are difficult to change. Though these policies,
procedures, and, rules are meant to facilitate managerial functions by, providing
guidelines, they often are too numerous and exacting that they leave very little scope for
managerial initiative and flexibility.

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Since managers have to plan for future which is not static but changing, they often find
themselves in great constraints. Such problems are more common in bureaucratic
organisations where rules and procedures are the matters of prime concerns.

Third type of internal inflexibility comes because of long- term capital investment. Long-
term planning is not a process of making future decisions, but a means of reflecting the
future in today’s decisions. If the organisation has taken a long-term investment, it is
committed by that and future actions have to be taking in the light of the investment. Thus
managerial planning is limited to that extent.

(b) External

Besides the internal inflexibilities, managers are confronted with many external
inflexibilities and they do not have control over these. These factors may be social,
technological, legal, labour union, geographically and economic. The managers have to
formulate their plans keeping in view the demand of these factors. Thus their scope of
action is limited making planning in effective in many cases.

5. Time and Cost

While going through the strategic planning process managers should also take into
account both time and cost factors. The various steps of planning may go as far as
possible because there is no limit of precision in planning tools. But planning suffers
because of time and cost factors.

Time is a limiting factor for every manager in the organisation on, and if they are busy in
preparing elaborate reports and instructions beyond certain level, they are risking their
effectiveness. Excessive time spent on securing information and trying to fit all of it into a
compact plans is dysfunctional in the organisation.

6. Rigidity

Often people feel that planning provides rigidity in managerial action. Many types of
internal inflexibilities, may be results of planning itself. The planning stifles employee
initiative and forces managers into rigid or straitjacket mode of executing their work. In
fact, rigidity may make managerial work more difficult than it need be. This may result in
it delay in work performance, lack of initiative, and lack of adjustment with changing
environment.

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Many people feel that planning is limited in value because best results can be obtained by
a muddling through types of operation in which each situation is tackled when and if it
appears pertinent to the immediate problem. Though this factor of rigidity of planning is
limiting factor but without planning, it is really difficult to operate particularly in large
organisations.

The planning also involves cost on the part of the organisation. The various factors
analysed above contribute to the limitations of strategic planning, either making planning
ineffective or making lesser degree of planned work.

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 CHAPTER 3

REVIEW OF LITERATURE

3.1 Introduction

3.2 Review related to Strategic Planning and its elements .

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3.1 INTRODUCTION

The objective of this chapter is to review the literature used for the purpose of present
research work. The chapter deals with various books, journals, newspaper articles which
were reviewed to gain background knowledge of the study.
Further it helps to identify the concepts relating to the research topics. It helps to identify
appropriate method or research design and the technique for analysis of data. In addition
to this it helps to identify data sources used by other researchers and to learn how to
develop the new research report.

3.2 REVIEW RELATED TO STRATEGIC PLANNING AND ITS ELEMENTS .

1. Gibb and Scott (1985) are of the opinion that strategic awareness and the

involvement of the entrepreneur offsets the lack of formal strategic planning as an

output of strategic management. The degree of the entrepreneur’s strategic

orientation thus seems to be a key factor for the strategic focus of the enterprise

(Mazzarol, 2003).

2. Schwenk and Shrader (1993) showed in their meta-analysis of 14 studies that

the existence of strategic planning is significantly positively correlated with

(financial) success of the enterprise.

3. SLyles et al. (1993) state that a more advanced and more detailed strategic

management results in a more substantial corporate growth.

4. Risseeuw and Masurel (1994) confirm their hypothesis that planning activities

will intensify with increasing enterprise growth in their study of 1,211 real estate

agents in the Netherlands. In addition, they show that big enterprises plan more

intensively than small ones. However, the authors emphasize that young

enterprises tend to undertake more planning particularly in the initial phase of the

enterprise in order to raise external financial capital.

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5. Empirical studies also demonstrate that formal strategic planning (e.g. based on

business plans) can be helpful for young and fast growing enterprises

(Castrogiovanni, 1996;Robinson et al.,1984). For example, Sexton and Van Auken

(1985) found in a longitudinal analysis that the survival rates of SMEs conducting

formal strategic planning are higher.

6. Matthews and Scott (1995) even state that formalization is the most common

dimension of strategic planning. The formalization increases, according to their

results, with increasing enterprise growth since bigger enterprises possess more

resources and internal differentiation. This reasoning entails the notion that smaller

companies possess fewer resources in terms of time, personnel or knowledge and

will thus carry out less (formalized) planning activities (Robinson & Pearce, 1984).

7. O Gorman and Doran (1999) demonstrate empirically that the presence of a

formal mission or mission statement does not seem to have any direct influence on

the performance of small enterprises.

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 CHAPTER 4

CONCLUSIONS & FINDINGS

4.1 Conclusions

4.2 Findings

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4.1 CONCLUSIONS

Strategic planning is very important for any organization to achieve its short and long
term goals. Especially, with the boom and busts of the global economies in the last few
decades, it has become even more important for companies to execute their strategies
carefully. Avery important part of the strategy is to get ready for any future changes and
to be well placed to face the challenges brought by these changes. This is why; strategy
should be capable of minimizing the threats and maximizing the opportunities which are
brought by the change.

“Strategy can be seen as an on going ‘positioning’ process for an organization and

strategic planning can be seen as a separate activity reviewed at periodic well- defined
intervals”. Strategy involves achieving a competitive advantage for an organization in
meeting the needs of customers and fulfilling the expectations of stakeholders.

New entrepreneurs have a lot of details to think about, including crafting a strategic plan.
Experienced business leaders frequently stress the importance of a strong, well-designed
strategic plan. Without an appropriate plan in place, you can miss out on new
opportunities, and may even stand in the way of your own growth.

Your strategic plan is the document that shapes the specific activities you’ll undertake to
overcome the challenges you face on the way to your goals. It spells out the logical steps
you will take to lead you from the start to the finish of your endeavor.

The word “strategy” originated on the literal battlefield. It derives from an ancient Greek
word referring to the art of setting up military resources in preparation for war. In
addition, more than a few business experts have compared strategic planning to a chess
match, in that it usually requires you to concentrate not only on the field of play before
you, but on numerous moves ahead.

Ask yourself a few key questions as you formulate your strategic plan. These include
questions regarding the current state and position of your company, where you want to be
in a specified time frame, how you see yourself getting there, and the resources of people,
tools, and finances that are best capable of helping you arrive there.

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4.2 FINDINGS

During the strategic planning process, an organization does three fundamental activities.
They build or modify their foundational strategic vision and mission, commit to
objectives or goals that drive the overall health of their organization, and develop a long-
term plan to achieve those goals.

A strong strategic plan positions the organization for success and clearly defines what that
looks like at every level. A common mistake we see is jumping right into tactical
execution without first thinking through, communicating, and aligning on the overall goal
of the strategic plan. Skipping these important steps can leave your organization without
direction and cause it to struggle.

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 CHAPTER 5

BIBLIOGRAPHY & REFERENCES

5.1 Bibliography

5.2 References

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5.1 BIBLIOGRAPHY

1. Books

2. Magazines

3. Internet Sites

5.2 REFERENCES

1. Perspectives on Strategy from The Boston Consulting Group (1998). Carl W. Stern
and George Stalk, Jr. (Eds). John Wiley & Sons.

2. Concepts of Strategic Management, 5th Edition (1995). Fred David. Prentice-Hall

3. Strategic Management: Concepts and Cases, 9th Edition (1996). Arthur Thompson, Jr.,
and A. J. Strickland III. Irwin.

4. Strategy and Structure: Chapters in the History of the American Industrial Enterprise
(1962). Alfred Chandler, Jr. MIT

5. Strategic Planning and Management Handbook (1987). William King and David
Cleland. Van Nostrand Reinhold.

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