Why Strategic planning is an important business activity and critical to business success - MBAnetbook.co.in

Tuesday, February 5, 2013

Why Strategic planning is an important business activity and critical to business success

Strategic planning is important to an organization as it clearly determine the purpose of the organization and establishes realistic goals for identified time period within the organization’s resources moreover guides day-to-day actions. It is a tool to achieve competitive advantage. It is a road-map for an organization to achieve competing edge. 

What makes strategic planning important for organization? 

Strategic planning serves a variety of purposes that determines the importance for an organization. 

Provide overall direction for an organization – Usually planning are done for parts of the organization, or specific functions or processes but strategic planning allows planning for an organization as a whole and provides an overall strategic direction to the management by giving specific direction to different areas or functions of organization. 

Prepare you for future - A strategic plan allows you to get prepare for the future by providing the measures to achieve a desired future for an organization. It provides road-map to follow and prioritizes the work to be done. 

Helps to deal with change - However a strategic plan is a series of agreements about what needs to happen but it is also a dynamic document that provide flexibility to the organization so that when change occurs, the plan can be adapted to accommodate the changes. 

Effective utilization of resources – Strategic planning enables the most effective use organization’s resources through concentrating on the resources on the key priorities. 

Effective decision making  – A strategic plan is guided day-to-day activities which include regular decision making with long term and short term prospective that makes decision making more effective.

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