Strategic planning is the process of an organization outlining it overall strategic posture in regard to plans, organizational direction, resource allocation and other relevant organizational tasks. The strategic planning process includes five major elements:
- Defining the organizational mission and objectives.
- Environmental analysis (as it relates to the competitive environment business/industry).
- Formulating the strategy.
- Evaluation and control.
The strategic planning process helps in the understanding of a company’s internal strengths and external weaknesses because the steps involved in the process help identify these strengths and weaknesses. Tools like the SWOT analysis, PEST analysis, Balances scorecards allow managers to access the company’s overall strategic position.