Matswapati June 26, 2020 Strategic Planning
Making Strategic Decisions for the Company
There are mainly 2 opinions about this step. Some people tend to exclude it from how to present a strategic plan since it is not about the plan at all. It is about the result of the plan. On the other hand, it is actually still reasonable to include it in the plan. The decision is needed to evaluate the old plan and then create a new one for the company. In general, strategic decisions indeed need to be created and then evaluated.
Sure, it has not stopped there. Next, the strategic decision is created to improve operational performance. The company must make a choice that is the most compatible with its ability. For example, to develop, a company needs to enter a new market segment or sell a new product type. The choice of strategies depends on some factors; they are the external environment, managerial perception, risk, old strategies, and more.
The formulation of strategic planning refers to a long-term relationship between the companies with their external environment. Sure, there are more people and areas that are included in the environment. For this matter also, the goals of business must be accurate in estimating social effects. It is clear enough if establishing a business is not an easy thing. There are so many things to consider avoiding bad effects to happen later. Even since the beginning. It is okay to have a managerial team for good and effective strategic planning. Therefore, a question; what does a strategic plan look like? can be answered.
Finally, it seems really puzzling to make strategic plans. However, it is something that should not be left behind by a company. Sure, it is if you want your company to run well not only now but also in the future. Make sure to include 5 steps above to make a strategic business plan example.
Further Internal Environment Analysis
Do you know that further internal environment analysis needs to be conducted? After conducting a general analysis of external and internal environments, you still need to deal with the internal environment anyway. However, the analysis is more about analyzing the strengths and weaknesses of the company. This type of analysis enables the company to maximize its strengths and minimize its weaknesses.
Strategic business plan example, what does it look like? Well, it is quite difficult to describe since every company or business must have its own purposes that are different from one to another. But there is a thing that is just the same in those companies or even organizations. A company can run and grow well when it has a good plan and guidance. The plan is conducted through assessment, evaluation, and decision making. So, this is the answer if there is a question; what is a strategic business plan?
The environment analysis is always included in steps of how to make a business strategy. Unfortunately, the terms environment here is commonly considered only dealing with the external community. Many businessmen forget that the internal situation in the company is also another environment that needs to think about. So, in your environment analysis, make sure to include those two areas; internal and external environments.
After the goal has been determined, you can directly go to the execution actually. But before starting it, you should conduct another step, known as the environment analysis. The analysis is done based on the strategic planning formulation mentioned above. What is the purpose of the environment analysis? It is mainly to identify opportunities and threats. You must take note of the important factors that influence your business’ activities in the future.
Strategy Implementations and Controls
After strategies have been determined, here is the last step. The strategy must be translated into an operational plan. Programs and budgets are developed for every function. Besides, although the strategic plan is focused on long-term plans, there must be the short-term ones also. Short-term plans are generated from long-term plans. Of course, goals of short-term plans are combined to reach the goal of long-term plans or the strategic plan. The relationship between long-term and short-term strategies explains the strategic planning definition and examples.
A strategic business plan itself refers to a long-term plan. At least, when your company is still new, you need to have a plan for the next 3-5 years. When the company has its own managerial team, the plan can be longer up to 10 years. Meanwhile, there is a process of the strategic business plan that you should know. The process, at least, includes 5 matters or steps. What are they?
In a big company, the managerial team even creates its own strategic planning framework model for the internal environment analysis. Yes, it is because of so many indicators and factors to include and analyze. For example, the indicators and factors are related to finance, human resources, production equipment, and more. In fact, so that you can conquer the external society, the internal condition of your company must be relatively good and stable.
To make and execute strategic plans well, it is also important for an organization to have a good accounting or finance system. In fact, the finance system is a very important key to run a business that is still related to the strategic plan. There are so many ways to do it. First of all, you can hire a professional accountant or be a client of an accountant company. Besides, it is also good to provide accounting software.
Meanwhile, the company must also develop controls to evaluate work performance as the strategy that is started to use. If the actual result is still below the expectation, the strategy must be evaluated or re-analyzed. The new plan made from the evaluation must be suitable for the condition of the external environment. This is how to explain strategic planning process generally anyway.
A strategic plan is started with determining the goals of the company. Of course, goals here don’t only refer to general things like gaining profits or finding many customers. You must mention them in detail. For example, if the company wants to sell a certain product, it must be mentioned clearly what product it is along with the series. Besides, the number of items to sell and the time period must be stated also.
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