The development and execution of strategic plans is a well-thought-out plan performed in three critical steps: In the formulation of strategies, the business assesses its current situation by performing an internal and external audit.
However, reactive strategies are short-term, causing firms to spend a significant amount of resources and time.
Strategic planning helps firms prepare beforehand; it lets the company initiate influence instead of just responding to situations. Some studies show the strategic planning process makes a significant contribution more than the decision itself.
Strategy evaluation involves three crucial activities: reviewing the internal and external factors affecting the implementation of the strategies, measuring performance, and taking corrective steps.
All the three steps in strategic planning occur in three hierarchical levels: the corporate, middle, and operational levels.
The increased dialogue and communication across all the stages of the process strengthens the employee’s sense of effectiveness, initiative-taking, and imagination.
It explains the need for companies to decentralize the strategic planning process by involving lower-level managers.
Communication is crucial to the success of the strategic planning process.
It is initiated through participation and dialogue among the managers and employees, which shows their commitment to achieving organizational goals.
Companies often enter into a joint venture to pursue specific projects.
The JV may be a new project or new core business or mergers.