Strategic_Planning


Strategic Planning






What is Strategic Planning

Strategic planning is the process of documenting and establishing a direction of your small business—by assessing both where you are and where you’re going. The strategic plan gives you a place to record your mission, vision, and values, as well as your long-term goals and the action plans you’ll use to reach them. A well-written strategic plan can play a pivotal role in your small business’s growth and success because it tells you and your employees how best to respond to opportunities and challenges. (Vo, 2018)

Benefits of Strategic Planning

The strategic planning process can take some time, but it’s helpful for everyone involved. The small business owner, you’ll have a superior idea of the goals and objectives you want to accomplish and a path to do that. For your employees, the process can foster an increase in productivity, contributing to the success of the business.


·         It allows organizations to be proactive rather than reactive
·         It sets up a sense of direction
·         It increases operational efficiency
·         It helps to increase market share and profitability
·         It can make a business more durable
(Ong, 2019)


Strategic Planning Tools & Techniques




Source: (strategic-planning-tool-business)

1- SWOT Analysis
2- Porter’s 5 competitive forces
3- Ansoff Matrix or the Product Market Matrix

 Iridium – Gambling on Technology

Iridium was a company that produced global satellite phones. Backed by Motorola, it spent $5 billion to expand and launch its wireless satellite phone range. To work, the system relied on 66 satellites, which were not yet in place. In an effort to make this happen, the company put itself in $1.5 billion of debt. Further, each handset was priced at $3000 and cost $5 a minute per call, on top of other significant monthly charges. Customers rejected this and in 1999 the company filed for bankruptcy, less than a year after launching. (Point, 2019)

Conclusion

Strategy con is simply defined as a plan for securing competitive advantage in a given market. Strategy exists at multiple levels in an organization: corporate, business unit, and functional levels. The marketing concept has a significant role to play in strategy development and corporate success. Competitive marketing strategy aims to aims to establish a profitable competitive position for the firm against all forces the determine industry competition.

References

Management Study Guide. (n.d.). Retrieved May 16, 2020, from https://www.managementstudyguide.com/contact-us.htm
Ong, C. (2019). Benefits of Strategic Planning.
Point, B. (2019). spectacular-business-strategy-failures. Retrieved from www.bridgepointgroup.com.au.
strategic-planning-tool-business. (n.d.). Retrieved from www.siteware.co.
Vo, E. (2018, November). what-is-strategic-planning. Retrieved from https://sba.thehartford.com/business-management/.

B.A. Lankeshwara


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