CSBS 10931121056 BS Anchal

NAME : ANCHAL
DEPARTMENT : CSBS
SEMESTER : 5TH
SUBJECT : BUSINESS STRATEGY(HSMC (CSBS)- 501 )
UNIVERSITY ROLL : 10931121056

Strategic Planning
Strategic planning is the art of creating specific business strategies, implementing them, and
evaluating the results of executing the plan, in regard to a company’s overall long-term goals
or desires. It is a concept that focuses on integrating various departments (such
as accounting and finance, marketing, and human resources) within a company to accomplish
its strategic goals. The term strategic planning is essentially synonymous with strategic
management.
The following four aspects of strategy development are worth attention:

The mission : Strategic planning starts with a mission that offers a company a sense of purpose
and direction. The organization’s mission statement describes who it is, what it does and where it
wants to go.
The goals : Strategic planning involves selecting goals. Most planning uses smart goals specific,
measurable, achievable, realistic and time-bound -- or other objectively measurable goals.
Measurable goals are important because they enable business leaders to determine how well the
business is performing against goals and the overall mission.
Alignment with short-term goals : Strategic planning relates directly to short-term, tactical
business planning and can help business leaders with everyday decision-making that better
aligns with business strategy.
Evaluation and revision : Strategic planning helps business leaders periodically evaluate
progress against the plan and make changes or adjustments in response to changing conditions.
Steps in the strategic planning process :

Identify : A strategic planning cycle starts with the determination of a business's current strategic
position. This is where stakeholders use the existing strategic plan -- including the mission statement
and long-term strategic goals -- to perform assessments of the business and its environment. These
assessments can include a SWOT (strengths, weaknesses, opportunities and threats) analysis to
understand the state of the business and the path ahead.
Prioritize : Next, strategic planners set objectives and initiatives that line up with the company
mission and goals and will move the business toward achieving its goals. There may be many
potential goals, so planning prioritizes the most important, relevant and urgent ones.
Develop : This is the main thrust of strategic planning in which stakeholders collaborate to formulate
the steps or tactics necessary to attain a stated strategic objective. This may involve creating numerous
short-term tactical business plans that fit into the overarching strategy.
Implement : Once the strategic plan is developed, it's time to put it in motion. This requires clear
communication across the organization to set responsibilities, make investments, adjust policies and
processes, and establish measurement and reporting. Implementation typically includes strategic
management with regular strategic reviews to ensure that plans stay on track.
Update : A strategic plan is periodically reviewed and revised to adjust priorities and reevaluate goals
as business conditions change and new opportunities emerge. Quick reviews of metrics can happen
quarterly, and adjustments to the strategic plan can occur annually.
SWOT ANALYSIS
SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a
company’s competitive position and to develop strategic planning. SWOT analysis assesses internal and
external factors, as well as current and future potential.
A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and
weaknesses of an organization, initiatives, or within its industry. The organization needs to keep the analysis
accurate by avoiding pre-conceived beliefs or gray areas and instead focusing on real-life contexts. Companies
should use it as a guide and not necessarily as a prescription.
Components of SWOT Analysis :

Strengths
Strengths describe what an organization excels at and what separates it from the competition : a strong
brand, loyal customer base, a strong balance sheet, unique technology, and so on. For example, a hedge fund
may have developed a proprietary trading strategy that returns market-beating results. It must then decide
how to use those results to attract new investors.
Weaknesses
Weaknesses stop an organization from performing at its optimum level. They are areas where the business
needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an
inadequate supply chain, or lack of capital.
Opportunities
Opportunities refer to favorable external factors that could give an organization a competitive advantage. For
example, if a country cuts tariffs, a car manufacturer can export its cars into a new market, increasing sales and
market share.
Threats
Threats refer to factors that have the potential to harm an organization. For example, a drought is a threat to
a wheat-producing company, as it may destroy or reduce the crop yield. Other common threats include things
like rising costs for materials, increasing competition, tight labor supply.
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CSBS 10931121056 BS Anchal

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NAME : ANCHAL

SUBJECT : BUSINESS STRATEGY(HSMC (CSBS)- 501 )

UNIVERSITY ROLL : 10931121056

The following four aspects of strategy development are worth attention:

Steps in the strategic planning process :

Components of SWOT Analysis :

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