Value of Strategic Planning

• What is strategic planning?

  The long-term process by which a business sets goals and determines the best actions to achieve them, considering internal strengths and external environment
• What are the benefits of strategic planning?

  • Provides direction - helps ensure all the functions are aligned with the long-term vision
  • Reduces uncertainty - businesses operate in changing environments, and strategy helps reduce surprises
  • Resource allocation
  • Stakeholder confidence
• What are the drawbacks of strategic planning?

  • Time consuming - can distract from day-to-day management
  • Inflexible in fast-changing environments
  • Over reliance on predictions - forecasts may be wrong
  • Can be demotivating if targets are unrealistic or top-down with no employee input
• When is strategic planning most useful?

  • In stable or predictable industries
  • For large firms with many departments needing coordination
  • When undertaking significant investment or expansion