Strategic Planning: A Guide to Organizational Success

Strategic Planning

Definition

Planning involves selecting missions and objectives to reach a decision. Relationship planning and control handles objectives, enabling control over planning and execution.

Types of Planning

• Inactive: Satisfied with the status quo.
• Reactive: Resist change and value experience.
• Proactive: Not content with the current state but await the future.
• Interactive: Design and plan the future.

Strategic Planning Process

Strategic planning defines the company's vision and mission, crucial for its success. Poor planning can lead to failure.

Strategic Planning Model

Elements include inputs, encompassing everything involved in the company or product.

Organizational Structures

Group Structure

Advantages

• Reflects functions.
• Simplifies training.

Disadvantages

• Slow adaptation to new conditions.
• Limits general manager development.

Organizing Process

Establishes roles, relationships, authorities, and responsibilities for efficient and effective operation to achieve objectives.

Geographical Structure

Advantages

• Delegates responsibilities to lower levels.
• Improves regional coordination.

Disadvantages

• Requires more general managers.
• Complicates senior management control.

Team/Department Structure

Horizontal division by areas.

Advantages

• Economic advantage.
• Utilizes specialized technology.

Disadvantages

• Difficult inter-department coordination.
• Utility responsibility falls on top management.

Mission and Vision

Mission: The reason, purpose, or existence of a company.

Vision: The long-term direction guiding strategic growth and competitiveness decisions.

Development Variables

Elements involved in a mission.

Objectives and Goals

Goal: The final reach.

Meta: Steps to achieve the goal.

Strategies, Policies, and Procedures

Strategy: Determining long-term goals using necessary resources.

Policy: Rules established by management to regulate company operations.

Procedures: Methods outlining how to do things.