Strategic planning is a continuous process that enables the company to define the best direction to be pursued for each of its strategic business units (SBUs) and allocate the necessary resources for such pursuit. The implementation of the strategy is also part of strategic planning.
The company strategy needs to be periodically reviewed, because of the changes of the markets and of the competition. The key element of a strategic plan is the definition of a clear mission, identifying the profile of the organization, who it serves, what it does and how, with a focus on the future. Strategy planning does not only have to do with setting and achieving business goals. It also creates clarity, alignment and organization-wide commitment.
Key Benefits of the Service
The formulation of a strategic plan includes the following elements:
- Analysis, covering a description of the internal and external environments
- High level strategy, defining the key strategic goals to achieve the mission
- Execution, defining the operational planning and action items
- Management, covering the on-going evaluation of the strategic items such as performance, culture, communications, data reporting, and other issues.
PEST analysis (political, economic, social and technological) describes a framework of macro-environmental factors that are part of an external analysis when conducting a strategic analysis or doing a market research.
It is a strategic tool for understanding market growth or decline, business position, potential and direction for operations.