Strategic Planning is that part of the overall Business Development Process that aligns the organization with its relevant opportunities, that is, the market opportunities with the highest potential profit in which the organization has the greatest advantage in skill and knowledge.
A Strategic Plan:
- Provides an overview and analysis of a business and its relevant environment.
- Describes the firm’s current condition and recognizes the key external factors affecting its success.
- Prescribes an outline, or action plan, of how the business will proceed to capitalize on its strengths and minimize its weaknesses and threats.
- Creates a finished strategic plan that is both an analytical tool and a working document that guides management action over a specified period of time.
Ultimately, the Strategic Plan weds the organization’s distinctive competences to its relevant market opportunities, and creates the business infrastructure to exploit both and maximize profits.
All organizations maximize success with a strategic plan but it is essential for businesses moving beyond the entrepreneurial phase in their development, where effectively coordinating and motivating the efforts of an expanded group of employees becomes critical.