Strategic Planning

Strategic planning is the formulation of long-range plans for the effective management of environmental opportunities and threats in light of a venture’s strengths and weaknesses.

Includes - defining the venture's mission, specifying achievable objectives, developing strategies, setting timelines and measures.

Basic steps in strategic planning:

1. Examine the internal & external environments of the venture (SWOT)
2. Formulate the venture's long-range and short range strategies: mission, objectives, strategies, policies
3. Implement the strategic plan: programs, budgets, procedures
4. Evaluate the performance of the strategy
5. Take follow-up action through continuous feedback

Benefits of strategic planning: cost savings, fewer cash flow problems, faster decision making, more efficient resource allocation, improved competitive position, more timely information, more accurate information, more accurate forecasts, reduced feelings of uncertainty.

Some reasons for the lack of strategic planning: time scarcity, lack of knowledge, lack of expertise/skills, lack of trust and openness, perception of high cost.

This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).