Strategic Planning for a Business
Before starting a business, it is but right to plan for such a business to assure success and further progress. Through this, the business will be organized and in order. An effective and efficient way of planning for a business is through Strategic Planning. What is Strategic Planning? What comprises this Strategic Planning? How can it help the business of many?
Strategic Planning is clearly defined as the strategy or direction and possible ways and techniques of making decisions during the whole duration of business including its capital and people. Under such a method involves several analysis techniques. This includes SWOT analysis or the Strength, Weakness Opportunities and Threats. You also have PEST analysis, which means Political, Economic, Social and Technological Analysis. Another is STEER analysis meaning Socio-cultural, Technological, Economic, Ecological and Regulatory factors. You have also EPISTEL, which means the Environment, Political, Informatics, Social, Technological, Economic and Legal Analysis. Strategic Planning is the formal consideration of an organization’s future course. There are also key questions that one has to consider before starting a business. The said questions include the following: What is needed to be done? For whom does this business benefit? How can one business beat or avoid competition with other businesses?
In order to determine the future of certain businesses, the owners need to know the development of such a business, and to know what further actions are best to be done to even develop such a business. Strategic Planning is done to cater for these objectives. It is also true that strategic planning may be a tool for effectively plotting future progress of the business. However, strategic planning cannot for itself tell exactly how the market will evolve and what certain issues or road blocks will surface in the business. Therefore, this should only be a guide and should not be solely relied upon. This is only to give one an idea of how to do business and how to make it develop and progress.
Furthermore, the strategic planning of a business serves as a framework for the decisions made or for the security support or approval. This would also provide the basis for more detailed planning. This would also hope to explain the business to others in order to inform, motivate and involve others. This plan can also assist benchmarking and performance monitoring and would stimulate change and become building blocks for the next planning of activities.
In doing strategy planning there are certain steps to follow. These steps include vision, mission, values, objectives, strategies, goals and programs of the said business. These steps will help the business in maintaining an organized atmosphere of activities and will be able to cope up with other stressors or road blocks that are experienced along the road to success.
Vision defines the desired or intended future state of the business or enterprise in terms of its fundamental objectives and /or strategic direction. Vision is a long term view, sometimes describing a view of how the organization or the business would like the world in which it operates to be.
Mission defines the fundamental purpose of an organization or an enterprise which basically describes why it exists, and what it does to achieve its vision. More or less, it is, in other words, the scraps of what makes the vision. It is more specific in comparison to the organization’s vision.
Values, on the other hand, are beliefs and traditions of a certain group shared by the owners of the business or enterprise. Values focus on the business’ culture and practices.
Objectives describe the needs and want of the business to achieve in a medium term. Objectives should also relate to the expectations and requirements of the business and reflect the reasons for running the business.
Strategies are the ways, procedures and the means by which the abovementioned vision, mission and objectives may be achieved.
Goals are specific time-based measurements to be achieved by implemented strategies in pursuit of the business’ objectives. Goals should be SMART. They should comprise being specific, measurable, attainable, reliable and time-bounded.
Lastly, programs are the setting out or the implementation of the strategic plan using the key strategies.
Through the following steps, your business may bloom more than you may have expected. It is a matter of following these steps to obtain success in your business.
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