A competitive advantage can be founded on expenditure or separation. Michael Porter recognized three industry independent general strategies from which the company can choose (the Strategic Planning Process, 2010).
The chosen strategy is put into practice by way of programs, budgets, and measures. Execution entails organization of the company's capital and inspiration of the employees to attain goals. The manner in which the strategy is put into practice can have an important impact on whether it will be victorious. In a big corporation, those who put into practice the strategy likely will be dissimilar individuals from those who devised it. Therefore, concern must be taken to speak about the strategy and the motive behind it. If not, the execution might not do well if the strategy is not understood or if lower-level supervisors resist its execution because they do not understand why the particular strategy was chosen (the Strategic Planning Process, 2010).
The execution of the strategy must be watched and alterations made as required.
Assessment and control is made up of the following things:
identify factors to be considered describe target values for those factors carry out measurements evaluate considered results to the pre-determined standard formulate needed alterations (the Strategic Planning Process, 2010).
Strategic planning is the center of the labor of a company. Without a strategic structure one doesn't know where they are going or why they are going there. In the end it doesn't really matter how they get there, just that they do. A strategy is an overall advance and plan. So, strategic planning is the overall planning that aids the good administration of a procedure. Strategic planning takes one exterior to the day-to-day activities of their company or project. It gives one the big picture of what they are doing and where they are going. Strategic planning provides one with transparency about what one really wishes to attain and how to go about getting it, rather than a plan of action for everyday processes (Shapiro, n.d.).
A strategic plan is not inflexible. It does, though, give one constraints within which to function. That is why it is important to:
found a strategic planning procedure on a genuine understanding of the outside atmosphere utilize work that has previous been done to expand the understanding of the outside atmosphere and of ones own capability, strengths and weaknesses.
A strategic planning process is not something that can take place in an unplanned way, at a normal planning meeting or during a staff meeting. It necessitates careful planning to set it up so that the procedure is systematic and all-inclusive. When one develops or revises a strategic plan, they are setting the constraints for the work of the company, typically for two to three years or longer. So, in the end it makes sense to spend some time and energy planning for the strategic planning process (Shapiro, n.d.).
Strategic planning is more than just ensuring that a company will continue economically sound and be able to uphold its coffers; it's foretelling where a company anticipates being in five, ten, or fifteen years and how the business will get there. It is an organized planning process concerning a quantity of steps that distinguish the present rank of the business, comprising its mission, vision for the future, operating values, needs including strengths, weaknesses, opportunities, and threats, objectives, prioritized events and strategies, action plans, and examining plans (Strategic Planning, 2001).
In order for a company to be successful now and in the future they must have a plan. They must continually be evaluating where they are, where they want to be and how best to get there. This is where the idea of strategic planning comes into play. This process allows company's to figure out what they need to do in order to get to where they want to be.
Basic Description of Strategic Planning. (n.d.) Retrieved February 21, 2011, from Web site: