Monday, August 15, 2005

Steps of Strategic Planning

If one wants to be successful, one must plan strategically. The planning should clearly define objectives and should understand both internal and external situation to formulate strategy then implement it. Progress should be evaluated in comparison to the plans and necessary adjustments should be carried out to stay on track.

The process to plan can be put in 5 simple steps:

1) Mission and objectives: The unchanging values and purpose of the firm should be understood.

2) Environmental Analysis: Understand the industry in which the firm is operating. Study the macro environment on the basis of company’s own strengths.

3) Strategy Formulation: Once the company is in business it needs to check the markets it’s operating in. One must try to bid in a competitive advantage over the competition.

4) Implementation of Strategy: The selected and designed strategy should be implemented. The way a new strategy is implemented can have a significant impact on whether it will be successful or not.

5) Evaluation: The policies and procedures defined under decided plans should be monitored. . Measured results due to new plans should be compared to the pre-defined standards and necessary changes should be made.

So be clear where you want to go before you start moving!!!!!