10+ Security Strategic Plan Examples - PDF, Word | Examples

 

what is a strategic plan in business

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the s and remains an important aspect of strategic management. Aug 08,  · Many business owners know and understand the value of a business plan. The business plan is a key component of the loan process and serves as a foundation for your organization. However, it only tells half the story. To get the whole picture and have a framework on which to build your business you also need a strategic plan/5(4). The strategic plan is a document that outlines a business’s vision, mission statement, goals and objectives over a specified time frame. It also describes how specific stakeholders in the business will contribute to the achievement of the set goals and objectives within the set time frame.


Strategic Plan Template: What To Include In Yours


Free Online Strategic Planner for creating a 3-page strategic plan based on the structure used in this white what is a strategic plan in business. Use it to organize your thoughts, structure your ideas and compile a short but comprehensive strategic plan for any size and type of organization.

Recommendation: Review the paper on this page before using the planner. Click here to see feedback from past users of this planning tool opens in a new window and click here to see a sample plan use back button on browser to return to this page. If you don't know where your business is going, any road will get you there.

Entrepreneurs and business managers are often so preoccupied with immediate issues that they what is a strategic plan in business sight of their ultimate objectives. That's why a business review or preparation of a strategic plan is a virtual necessity. This may not be a recipe for success, but without it a business is much more likely to fail. A sound plan should:. For inspiration and a few smileshave a look at some of the quotations and examples of bad advice included in other pages!

A strategic plan should not be confused with a business plan. The former is likely to be a very short document whereas a business plan is usually a much more substantial and detailed document. A strategic plan can provide the foundation and frame work for a business plan.

A strategic plan is not the same thing as an operational plan. The former should be visionary, conceptual and directional in contrast to an operational plan which is likely to be shorter term, tactical, focused, implementable and measurable. As an example, compare the process of planning a vacation where, when, duration, budget, what is a strategic plan in business, who goes, how travel are all strategic issues with the final preparations tasks, deadlines, funding, what is a strategic plan in business, packing, transport and so on are all operational matters.

A satisfactory strategic plan must be realistic and attainable so as to allow managers and entrepreneurs to think strategically and act operationally - see Devising Business Strategies for further insights.

Free Online Strategic Planner for creating a 3-page strategic plan. See a sample strategic plan - use the back button on your browser to return to this page. A critical review of past performance by the owners and management of a business and the preparation of a plan beyond normal budgetary horizons require a certain attitude of mind and predisposition.

Some essential points which should to be observed during the review and planning process include the following:. As the precursor to developing a strategic plan, it is desirable to clearly identify the current status, objectives and strategies of an existing business or the latest thinking in respect of a new venture.

Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived StrengthsWeaknessesThreats and Opportunities. This then leads to strategy development covering what is a strategic plan in business following issues discussed in more detail below:. Top of Page. The first step is to develop a realistic Vision for the business. This should be presented as a pen picture of the business in three or more years time in terms of its likely physical appearance, size, activities, structure, scale offerings etc.

Answer the question: "if someone from Mars visited the business, what would they see or sense? Here is a great example of a vision:. I will come to America, which is the country for me. Once there, I will become the greatest bodybuilder in history I will go into movies as an actor, producer and eventually director.

By the time I am 30 I will have starred in first movie and I will be a millionaire I will collect houses, art and automobiles. I will marry a glamorous and intelligent wife. By 32, I will have been invited to the White House. Just answer the questions as to what the business really is and does in qualitative terms. If planning for a startup, base the mission statement on the business as it would be once operational - be realistic and practical rather than aspirational.

For example, "to design, develop, manufacture and market specific product lines for sale on the basis of certain features to meet the identified needs of specified customer groups via certain distribution channels in particular geographic areas". A statement along these lines indicates what the business is about and is infinitely clearer than saying, for instance, "we're in electronics" or worse still, "we are in business to make money" assuming that the business is not a mint!

Also, some people confuse mission statements with value statements see below - the former should be very hard-nosed while the latter can deal with 'softer' issues surrounding the business. The following table contrasts hard and soft mission statements.

Intel's original plan, written on the back of a menu view copyis an excellent example of a hard statement:. The company will engage in research, what is a strategic plan in business, development, and manufacture and sales of integrated electronic structures to fulfill the needs of electronic systems manufacturers. This will include thin films, thick films, semiconductor devices, and A variety of processes will be established, both at a laboratory and production level Products may include dioded transistors Principal customers for these products are expected to be the manufacturers of advanced electronic systems It is anticipated that many of these customers will be located outside California.

If you'd prefer a soft statement, use the Dilbert Mission Statement Generator. When drafting a mission statement, critically examine every noun, adjective and verb to ensure that they are focused, realistic and justified. The next element is to address the Values governing the operation of the business and its conduct or relationships with society at large, customers, suppliers, employees, local community and other stakeholders.

Aside from presumably indicating a necessity to achieve regular profits expressed as return what is a strategic plan in business shareholders' fundsobjectives should relate to the expectations and requirements of all the major stakeholders, including employees, and should reflect the underlying reasons for running the business.

These objectives could cover growth, profitability, technology, what is a strategic plan in business, offerings and markets. Next are the Strategies - the rules and guidelines by which the mission, objectives etc. They can cover the business as a whole including such matters as diversification, organic growth, or acquisition plans, or they can relate to primary matters in key functional areas, for example:.

Use SWOTs to help identify possible strategies by building on strengths, resolving weaknesses, exploiting opportunities and avoiding threats. Next come the Goals. Goals should be quantifiable, consistent, realistic and achievable. They can relate to factors like what is a strategic plan in business sizes and sharesproducts, finances, profitability, utilization, efficiency.

The final elements are the Programs which set out the implementation plans for the key strategies. These should cover resources, objectives, time-scales, deadlines, budgets and performance targets. It goes without saying that the mission, objectives, values, strategies and goals must be inter-linked and consistent with each other. This is much easier said than done because many businesses which are set up with the clear objective of making their owners wealthy often lack strategies, realistic goals or concise missions.

Statements on vision, mission, objectives, values, strategies and goals are not just elements of future planning. They also provide benchmarks for a historic review. Most managers will find it exceedingly difficult to develop a future strategy for a business without knowing its current strategies and measuring their success to date.

The starting point must be to determine a company's existing implicit or explicit vision, mission, objectives and strategies. Then judge these against actual performance along the following lines:. Take each element and quantify by reference to actual performance.

Ask of each "why not"? A useful technique for exploring performance shortfalls is to review the business's financial return and to drill down through the components of this return to locate and assess the key determinants of performance. For example, return on shareholders' funds is a key measure of profitability which can be expressed as:. Take each item in this formula, explore its contents and derive performance measures or ratios.

For example:. Use of cascading ratios is illustrated in this DuPont-type profitability chart click thumb opposite which is automatically generated by more powerful versions of Exl-Plan to show the impact of specific changes in key variables and assumptions on overall profitability.

Subject the resultant ratios to critical examination and attempt to compare them with industry norms, what is a strategic plan in business. The paper entitled Managing Working Capital explains key working capital ratios. When reviewing a business it is essential to cut through the symptoms of problems and reach the underlying causes.

Questions which can assist in revealing the real causes include the following:. By way of an example consider why this company may be unable to increase its market share:. The moral in this case is that there are no major customers due to under-capitalization! Also have a look at the discussion on causes of business failure in Devising Business Strategies, what is a strategic plan in business. Having built up a picture of the company's past aims and achievements, the all-important SWOT strengths, weaknesses, opportunities and threats analysis can commence.

Strengths and weaknesses are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas. What is a strategic plan in business include:.

If a startup is being planned, the strengths and weaknesses are related mainly to the promoter s - their experience, expertise and management abilities - rather than to the project. The objective is to build up a picture of the outstanding good and bad what is a strategic plan in business, achievements and failures and other critical features within the company. The external threats and opportunities confronting a company, can exist or develop in the following areas:.

Against an uncertain and shifting background, the objective must be to identify and prioritize the key SWOTs in a one-handed manner Don't say "on the one hand Once the SWOT review is complete, the future strategy may be readily apparent or, as is more likely the case, a series of strategies or combinations of tactics will suggest themselves.

Use the SWOTs to help identify possible strategies as follows:. The resulting strategies can then be filtered and moulded to form the basis of a realistic strategic plan - see also Devising Business Strategies for further insights into the development of strategies. Notwithstanding that "battles are often lost for want of nails", what is a strategic plan in business, a company rarely succeeds or fails for minor or trivial reasons.

The causes are usually substantial and are often self-evident, what is a strategic plan in business, at least to an outsider. For example, the business was completely over-borrowed; management was weak; a major new product opportunity was identified; legislation changed; a major competitor went bust or expanded; the company never reinvested.

It should be possible in the course of a few pages to set down the main elements of a business's vision, mission, values, objectives, goals, strategies, SWOTs etc. The compilation of a short report along these lines is likely to prove much more difficult than a lengthy dissertation which mixes up details and principles, what is a strategic plan in business, and confuses the broad picture.

Independent advisers or non-executive directors can play a valuable role in this process because they can readily adopt the role of devil's advocate and also bring external knowledge and expertise to bear.

 

7 Elements of a Strategic Plan

 

what is a strategic plan in business

 

A strategic plan can provide the foundation and frame work for a business plan. For more information about business plans, refer to How to Write a Business Plan, Insights into Business Planning and Free-Plan: Business Plan Guide & Template. A strategic plan is not the same thing as an operational plan. Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the s and remains an important aspect of strategic management. Strategic Business Plan Template. A comprehensive, strategic business plan may include company information, SWOT analysis, research, goals, resources, risks and more. A template provides structure for your business planning process as well as a communication tool that’s simple to update or modify.